September 7th, 2015
Believe it or not, we use economics in our daily lives. Whether it's deciding what to get to eat or deciding if you should go hang out with your friends, economics play a role.
This week in Macro Economics class, we learned all about marginal costs and marginal benefits. In an ideal situation, you would want the marginal benefits to be higher than the cost.
When deciding what to eat, you must think of time and cost. How much is the food? Is the restaurant I want to go to far away? Will it take too much time? After considering all of this, you can decide if going to that place is worth your time. This also applies when you are deciding if you should go hang out with your friends or not. For example, this weekend my friends wanted to go to Septemberfest. I really wanted to go but I had family that I hadn't seen in a year come over for the long weekend. I decided to spend time with them because I get to see my friends all the time, but family only once in a while. In this case, the cost of me going was higher than the benefit.
I think it's interesting that in economics time is a resource we have to decide where to allocate, and consider where the resource is best utilized. I thought that it was interesting how you included both time and presence in the decision on what to eat, since before this class started I didn't really think of time as a major factor, but now I realize it is. Especially on the weekends, as seniors we have to weigh the marginal costs and benefits of friends, family, high schoo, and college.
ReplyDeleteI agree with your post and along with marginal costs, opportunity cost is also displayed when we choose to do one option and give up other options.
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