Two roads diverged in a wood, and I– I took the one less traveled by, And that has made all the difference—Robert Frost
The Economist.com has a nice definition of opportunity cost:
The true cost of something is what you give up to get it. This includes not only the money spent in buying (or doing) the something, but also the economic benefits (UTILITY) that you did without because you bought (or did) that particular something and thus can no longer buy (or do) something else.
The NFL draft is a popular example where opportunity costs are important. The draft is set up where draft picks are chosen sequentially, with each team having a set time to make a decision. Teams not only consider basic things like holes in the roster and which players are remaining, but they also consider possible alternatives—like choosing another player OR considering trades from other teams. Teams make mistakes when they pick a player too early–if they could have gotten the same player in a later round–or when they do not accurately gauge the value of their high pick to another team. Teams that fail to consider opportunity cost end up with some bad choices, and fans quickly voice their disagreement to management.
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If I would have read this before class today, then I would have gotten the question correct. I think that the opportunity cost had better have been met or surpassed by whatever it is that you did. For example, if I left to go to college and I gave up the opportunity to work, then the job that I get after college better give me more money than the job I left behind.
Armando Harris
Period 3
8-28-07
Opportunity cost is a risky business and could also be seen in the NFL Draft when owners and coaches look at a players past and background before they choose them for their team. It would have been a great idea for the Falcons to do this before losing a multi-million dollar franchise player to some stupid choices.
Justin Cornett
Period 2
8-29
Like mentioned previously, if I would have read this prior to the quizzes (the one taken before and the one today), I most likely would have answered those questions correctly. I would have never thought to have connected the process of the NFL Draft to economics; however, due to this article, I can more clearly see the connection of economics to the many various parts of life. I now more fully understand the NFL Draft (not a big sports fan), while at the same time, gaining a better understanding of yet another aspect of economics.
Rachel Wiley
Period 7
8-29-07
I think oppurtunity cost is something that all kids chould be taught when they get old enough to spend their money (or their parent's) on their own. I know i will go and get wendy's twice a week, instead of saving that money for gas, and later i can't buy some shoes because i used money on gas which i needed. So, there's a lot of scenario's i suppose when it comes to oppurtunity cost. Like i could have never bought an unneeded good, and saved until i was old enough for a car but i didn't and most kids don't. It should be taught to kids before they are 17.
Chance Colbert
Period 3
8/30-07
Opportunity cost, although I was only really aware of it yesterday, is around us all the time. It's the cost of every decision we make whether it be buying a stock or drafting an NFL player. This also proves that a quality of economics is found in our daily decisions with opportunity costs.
Opportunity cost, although I was only really aware of it yesterday, is around us all the time. It's the cost of every decision we make whether it be buying a stock or drafting an NFL player. This also proves that a quality of economics is present in our daily decisions with opportunity costs. Economics is everywhere! The one above this is mine but it didn't display my name.
Opportunity cost comes up everyday, not just in the NFL or in the stock market. It could be something as simple as choocsing whether to eat a box of chocolates or a salad. If you choose chocolate-even if it is delicios-you give up the benefit of choosing a health saavy meal. Opportunity cost allows one to decide between what's good and what's better.
opportunity cost is something that pops up in everyday life, not just in the NFL or in the stock market. It could be something as simple as choosing between a box of chocolates and a salad. If you choose chocolate-even if it's delicious-you lose the benefits of having a healthy meal. Opportunity cost allows one to see different options, and hopefully, decide between what's good and what's best.
opportunity cost is somethin that should be thought about before every little thing you do. If people teach their kids that then we would have severe decrease in bad choices that people end up regreting. Not only is this aa economics lesson but it is a life lesson
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