How related Opportunity cost with our life.

sourch

Hello All of my Hiveian Friends! I hope all of you are spending a great time! Again I
am back in my favorite community #education, where I can share with you my favorite and educational things. Today I will tell you a beautiful topic of economics about opportunity cost. Although it is new to me, because I am studying macroeconomics for the first time. Initially it seemed very difficult to me but considering the real situation, anyone can easily understand it. My class teacher helped me to understand this entire topic.

Macroeconomics discusses various aspects of economics in detail. The basic things of Economics include 10 principles.
10 principles are basically divided into three sections such as:

Section - 01: How people make decisions

Section-02: How they interact

Section- 03: How the economy as a whole works

The 2nd principle of Section-01 is, "The cost of something what you give up to get it". From which the concept of opportunities cost basically originates. By the way, if you are more interested in the ten principles then you can read "The Principles of Economics" by N. Gregory Mankiew. However, opportunity cost is something that in order to get something you must sacrifice something else, meaning you have to choose one opportunity between two opportunities. Let's explain it easily with the help of an example. Suppose your exam is after two days. But the day before the exam you suddenly remembered that you have been invited to your friend's birthday party. Now if you go to your friend's party then you will get much less time to study. And if you study, you will not be able to go to your friend's party.

Opportunity cost helps any consumer to choose the right product based on his purchasing power. There are many products in the market, and there is a price variation between them. Suppose, out of two vegetables, one is more nutritious and less expensive. The other is more nutritious and more expensive. In this case, consumers will usually give priority to the vegetable with less price and more nutritious value. Consumers will get the opportunity to consume the right product through opportunity cost. Opportunity Cost helps us to think about the sacrificed decision. It prevents us from making any decision in a hurry.

Opportunity cost helps us to make good decisions. There are many things in life that you will think are very important. But more important to you is to fulfill your dream. For which you can bear all kinds of costs. That is why you have to create a mind map to fulfill your dream, take the right decision, face many opportunity costs and sacrifice comforts. Because by giving up small laziness and working hard, you will be able to reach your desired goal.