Good morning, dear readers.
So far, I am really liking my classes. I especially like my microeconomics professor. He’s one of those teachers that does his darnedest to make sure you understand how his subject actually effects your life. This week the lecture was on opportunity costs and it got me thinking…
First, though, what are opportunity costs? If we start in the beginning, economists hold that we have infinite needs, wants, and desires but finite resources. That means that we have to make decisions about what things are most important–we have to make choices.
Now, when we make choices–if it’s a hard choice–there are two good options, option A an option B. And you choose option A, at the expense of option B. That is the opportunity cost. Now, you can’t do/have/use option B because you don’t have the resources (time, capital, etc). If option A is going to a concert and B is picking up an extra shift at work, by choosing option A, you not only have to pay the costs of the concert, parking, and grabbing food–the costs also include the pay you lost out on by not picking up that shift. Which is not to say that the concert isn’t worth it–it’s probably really awesome!–but there are costs associated with choosing to do that over choosing to work.
I don’t know about you, but I typically don’t think about opportunity costs–I focus on the things I did choose to do, not the opportunity I lost out on. But that made me wonder: what opportunities am I missing out on? And am I choosing the right option?
Every twenty minutes I spend wandering in Interwebz-land is a workout I didn’t or a healthy make-ahead lunch I didn’t make. It’s two lessons on DuoLingo that I didn’t take or some destressifying yoga that didn’t do. It’s twenty minutes of my life I don’t get back, because if anything is finite, it’s our time here.
Do you use your time thoughtfully? Or do your opportunity costs sound more lovely than your choices? Share in the comments!