1. Prior to working on this discussion, read chapter 1 in the course text. As a high school player at St. Vincent- St. Mary High School, LeBron James was already one of the best basketball players in the country. He had been offered numerous scholarships and was considering attending college at Ohio State University, the University of North Carolina, Duke University, Michigan State University, or the University of Kentucky. But after graduating high school, James decided to directly enter the NBA because likely the opportunity cost of college was simply too high. He was selected by the Cleveland Cavaliers as the first pick in the 2003 NBA draft, signing a three-year contract worth almost $13 million, with an option for a fourth year at $5.8 million. Had he decided to attend college instead, James would have incurred an opportunity cost of at least $19 million in forgone income to earn a four-year college degree .

Based on LeBron James's story, respond to the following components:

• What is the opportunity cost? Define the opportunity cost in your words.
• What was the opportunity cost for LeBron James when he determined to directly enter the NBA?
• Would you have skipped college if your opportunity cost had been that high? Explain.

2. Briefly describe the types of economic systems. What is the United States' economic system and what are the characteristics of this economy?

• What economic role or functions does the U.S. government conduct regularly?
• Why is the U.S. government's economic role important or unimportant for the U.S. economy? Discuss whether you favor a larger or smaller government role in the economy.