A Key Subject In Economics That Is Of Great Importance To Understand Correctly Is Opportunity Cost

A key subject in economics that is of great importance to understand correctly is opportunity cost. My favorite quote from this week’s readings is, “The choice to do one thing is, at the same time, a choice not to do something else” (Gwartney & Stroup, 2015, p. 19). This could not explain opportunity cost any better than it already does. Opportunity cost is something that exists in nearly any kind of gain, since something must always be sacrificed to move forward, and takes place in probably every American’s life, so I feel that this is a great thing to learn about and be well educated on. Throughout researching opportunity cost, I came across an interesting concept over this topic. Opportunity cost can be quite difficult to deal with at times since one always wants to make the correct decision. However, a simple opportunity cost formula may help to make a quick and accurate decision. By taking what you will be sacrificing and dividing it by what you will be gaining, you will result with the opportunity cost (Formula, para 3). Now, of course this will not work with every situation, but it can be a huge and quick help for the ones that it does. A real-world example of opportunity cost that nearly all students, including myself, can relate to is a college education. While trying to obtain a degree, there are several things that one must sacrifice (Business, para 1). Activities being lost due to studying, losing years of what could be work experience, and the price for one’s books, rooming, and overall education are only a few of the expenses for obtaining a college degree (Business, para 2). Even though a four year degree is easily worth all of this expense, there is definitely still a large price to be paid for a college level education. How does opportunity cost tie into a biblical point of view? Well, there are countless ways in which the Bible exemplifies opportunity costs, but one of the most concrete and life applicable examples is the

References: Gwartney, J., & Stroup, R. (n.d.). Economics: Private and public choice (15th ed.). Christ Church (Mandarin/East): Jacksonville, FL. (n.d.). Retrieved March 21, 2015, from http://www.christchurch-pca.org/post/opportunity-cost:-a-biblical-principle-of-wise-investment Reference for Business. (n.d.). Retrieved March 21, 2015, from http://www.referenceforbusiness.com/management/Ob-Or/Opportunity-Cost.html Opportunity Cost Formula: The Best Next Alternative Value. (n.d.). Retrieved March 21, 2015, from https://udemy.com/opportunity-cost-formula/ 55 Bible Verses about The Cost To Follow Jesus. (n.d.). Retrieved March 21, 2015, from http://www.openbible.info/topics/the_cost_to_follow_jesus