Monthly Archive: September 2015

Economics: Opportunity Cost

We have already talked about the definition of economics, about macroeconomics and microeconomics, about the laws of supply and demand, and how they work together. Now, let’s look at another basic economic idea: Opportunity Cost. Opportunity Cost means this: if we want to buy something or spend time on something, then it means that there is something else that we are not buying or spending time on. Confusing? Let’s look at an example. Say a student is trying to decide between buying a chocolate bar and a milkshake. He only has money enough to buy one of them. If he...