Central concepts of Economics

Central concepts of Economics

by Shakirul Alam -
Number of replies: 0


Opportunity cost is the cost of making one decision over another - that can come in the form of time, money, effort, or utility. We make these decisions every day in our lives without even thinking.

An example of opportunity cost is - a commuter takes the train to work instead of driving. It takes 70 minutes on the train, while driving takes 40 minutes. The opportunity cost is an hour spent elsewhere each day.