Ch. 6
2 of 1 ·What Do We Give Up?
Chapter 6 · Choices and Trade-offs
Lesson 2 · Choices and Trade-offs
What Do We Give Up?
Recognise opportunity cost and real constraints.
Easy~25 minFree preview
Concept
Every choice closes another door
The opportunity cost of a choice is the best alternative you give up. Time, money, space and attention are limited, so even a good choice has a cost.
Example
Two free hours
Click to zoomIllustration supporting Two free hoursSpending two hours practising cricket may be worthwhile, but those same hours cannot also be used for a film, homework and sleep. The opportunity cost is the most valuable alternative forgone.