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Pridružen/-a: 12.04. 2022, 13:05
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 Objavljeno: 10 Maj 2022 13:50 Naslov sporočila: Youtube subscriber sites |
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The Scoop on Scarcity
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In life, nothing is possible. There is a scarcity factor involved. In spite of our unlimited wants, we have limited access to goods, services, money, time, and opportunities. According to Caceres-Santamaria, the concept is what drives choice-and, by extension, costs and tradeoffs.
She gives the example of choosing to buy a $7 smoothie at the mall. She believes that most people would simply view the choice as a question of whether they want the drink or not.
Rather than wearing "economist glasses," she suggests looking at the decision differently, asking:
What is the value of this to me?
What do I give up now in order to have it?
What do I give up in the future to have it now?
Costs That Are Seen and Unseen
The trade-offs a person makes can also affect their professional and personal well-being over time, despite our tendency to focus on immediate financial matters.
Aceres-Santamaria suggests that in the process of decision-making, we should not only consider explicit alternatives - choices and costs - but also implicit alternatives - i.e., "unseen" opportunity costs.
The idea is to be able to think beyond the current situation and consider other options for spending the money.
Do you have any other examples of opportunity costs?
A student spends $20 and three hours at the movies the night before an exam. Time spent studying and money spent on other activities are examples of opportunity costs.
The farmer decides to plant wheat, but the opportunity cost would be planting a different crop or using the resources (land and farm equipment) in a different way.
In Nigeria, people take the train instead of driving to work. The train takes 70 minutes and the road takes 40 minutes. Those minutes could have been spent doing something else.
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