So I will not deny, I am a huge nerd. I started the quarter intending to double major in Accounting and Finance and having taken Econ 200 so far, I just recently (as in, today) became an Econ major. I just really love Economics.
So far my favorite thing has been opportunity cost. Since we learned about it, I constantly find myself thinking about it in my everyday life. Examples: "What is the opportunity cost of my going to class at 930am vs me sleeping in?" or "What is the opportunity cost of me going in to work vs me calling in sick?" or "What was my opportunity cost of falling asleep during class vs staying awake and hearing lecture?"
Now I realize that I might not ACTUALLY be able to mathematically figure out the answers to these questions but just the idea and the concept is something that I find so useful. It also makes me so much more productive.
I feel that the notion of opportunity cost is the best way for not only an individual but a company to decide if a decision is worthwhile.
If you think about it, Economics is really a study of opportunity cost. I think this because economics is the study of how societies produce and distribute goods in reaction to wants and needs of its members. What determines production and distribuation? Opportunity cost.
I must agree. Opportunity cost is the single most useful concept that we have learned so far. I find the same things occuring in my life and that I weigh the costs of two different situations just as you do. I can't quite agree with you on this making me switch my major to econ, but it has given me a desire to go into the business world.
ReplyDeleteI agree that opportunity cost is the most useful thing we have studied. I have used opportunity costs the most since i took this class. For Instance, I used opportunity costs when scheduling for spring quarter. To determine whether or not my time was worth going to work or going to class and how i could schedule classes while getting in the most amount of hours to work.
ReplyDeleteJessica and I have discussed on several occasions the opportunity for various opportunity costs! I also agree that I find myself searching for the "opportunity cost" of things everyday and often wish there was a formula for every situation i encounter to figure out just what the opportunity cost is!
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