1. Tiger Woods dropped out of Stanford University to pursuea career as a professional golfer. At the time he left theuniversity, he was majoring in finance and would have beenemployable as a stock broker or financial analyst earning$150,000/year. When he turned pro, he immediately signed anendorsement contract with Nike for $20 million.
a. What was Tiger’s opportunity cost for becoming a professionalgolfer?
b. Opportunity costs occur when decisions are made. Economistsrecommend that those decisions be based on what?
c. Are opportunity costs always measuredin dollar terms? Explain.
d. You will spend about 90 minutes on this exam. What is youropportunity cost for spending your time in that manner?

2. You plan to attend college. Answer the followingquestions:
a. What are the explicit (cash out of pocket) costs of attendingcollege? What are the implicit (lost opportunities) of attendingcollege.
b. You will not have any current rock stars or major league ballplayers attending your classes. Why not?
c. Assuming everyone has equal intelligence, college will still notbe the right choice for everyone. Using the concept of opportunitycosts, explain why.