Opportunity Cost

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Recommended: Application of economics in decision making

Economics affects everyone on a daily basis. Whether people know it or not, everytime they make a decision on how they spend their money or time they are dealing with economics. One concept that proves this statement is opportunity cost. Opportunity cost is something that someone gives up when they decided to choose another option. An example that might happen in everyday life is choosing between going to class or sleeping in. If you decide to go to class, the opportunity cost is the extra sleep that you could have got. If you decide to sleep in, then the opportunity cost is missing class. Another economic concept that affects everyone in day to day life is the law of diminishing marginal utility. This law says that the more a product is consumed,

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