Question

Opportunity cost is an interesting concept that has a potential impact on our everyday lives. For this discussion think about what you do on a regular basis that has an opportunity cost. Explain what the events are and the opportunity costs involved with those activities. List and explain at least five. It is important to note that opportunity costs are often confused with consequences.

Answer 1

• opportunity cost is a very important and essential as well as an interesting concept in economics
• opportunity cost implies that for achievement of a particular thing or unit of a commodity one must have to forgo or sacrifice the consumption of some other commodity.

in our daily life we have to make decision on the basis of opportunity cost.

let's explain some five activities those are involving opportunity cost in our daily life.

1. SLEEPING VS WORKOUT- The first and foremost thing which we must have experienced is having a nap or getting ourself ready to exercise. if you want to work out say want to go Gym then you will have to forgo your comfort of sleeping . therefore one is the opportunity cost for another.
2. SCHOOL VS A JOB OFFER -suppose you are a student and you got an offer to do a particular work for a day for say $35, now you have to be indifferent between one of the choice. if you choose schooling then you are sacrificing $35 dollar and if you choose the job then you are agreeing yourself to sacrifice the study of one day. one is the opportunity cost for another.
3. CHOICES IN TRAVELING MODE- suppose you are returning from college/office . you home is almost 2 miles away from your place, you can either travel by subway and spend almost $5 dollar or you may just walk upto your house. if you choose subway then you are sacrificing $5 and enjoy the comfort and save the time. but if you choose the walk then you are saving $5 but sacrificing you timing. therefore both of these are opportunity costs for one another.
4. CHOICES AMONG FOOD MENUS- suppose you went in a restaurant to have a dinner and you have only $30 and your favorite meal is around $38. either you can choose $38 dollar meal then you may be in a debt or you can choose and compromise with your meal and spend only $30.
5. SAVING VS SPENDING- suppose you got your monthly paycheck and you have $150 saving in your pocket either you can invest it and earn interest on it or you can spend it on your favorite wardrobe collection. choice might be on you but saving would be the sacrificing cost of spending and vice versa.

opportunity cost are much concerned with choices rather then the consequences and vary the opinion with person to person