defined by most economists as 'the highest valued benefit that must be sacrificed as a result of choosing an alternative', it tells us nothing but a trade-off...what have you given up the most in order to get what you wanted (or because you have decided to do something else). okay, if you are reading this blog now and it's taking you about an hour to digest this, bang! you just lost 25 pesos ($.50) if you have used the time working as a bus boy/girl in a fast food chain. see? that easy. but of course, there are many ways to make that harder. you have to read books, consult your teacher and do decent scholarly surfing for that.
one of the most important opportunity costs involves time---when used for one activity cannot be used for other activities. your time used for reading, net-surfing, studying, working, or shopping will not be available for other uses. here, your allocation of time is viewed like any decision you make---choose your use of time smartly! say, to meet your needs, to achieve your goals, and/or to satisfy personal values.
here's one i might need to remind myself...opportunity costs relate to health too. lack of sleep, poor eating habits, lack or avoiding physical exercise may result in illness, time away from productive activities like school and work, higher health care costs, and lower economic (eg. financial) security. hence, your personal resources (time, energy, health, abilities, knowledge) require careful management too or else you'd say 'sayang!' (what a waste!).
now, give it a try... what have you given up the most? that may be your opportunity cost. is it worth it?
