We often have to make tough choices when it comes to spending money or time because of something called scarcity. This means we don’t have enough resources for everything we want. For example, we can run out of money, time, or even certain products. But our wants keep growing.
Let’s say I have $10. I can either buy a new book or go watch a movie. If I choose to buy the book, I can't go to the movies anymore. This is known as opportunity cost.
So, the opportunity cost of buying the book is missing out on the movie.
By thinking about these choices, we can see the good and bad sides of each option. This helps us make smarter decisions!
We often have to make tough choices when it comes to spending money or time because of something called scarcity. This means we don’t have enough resources for everything we want. For example, we can run out of money, time, or even certain products. But our wants keep growing.
Let’s say I have $10. I can either buy a new book or go watch a movie. If I choose to buy the book, I can't go to the movies anymore. This is known as opportunity cost.
So, the opportunity cost of buying the book is missing out on the movie.
By thinking about these choices, we can see the good and bad sides of each option. This helps us make smarter decisions!