Discussion Board #1
Discussion Board Requirements (please review the syllabus for a more detailed explanation)
- Initial post: 3-4 paragraphs, must have at least an in-text citation and reference in APA formatting, answer the question, focus on your content development, and application of economic terms
- Question:
Explain your opportunity cost of taking this course. Analyze a
a decision that you recently had to make and how did economics impact
your decision.
Week 1 Discussion
In the world, the wants of the people are unlimited but the resources available are limited, that is, the supply of opportunities, money, time, goods, and services is limited. This concept of scarcity in economics leads to the concept of the opportunity cost which is foregoing the benefit or value of an option that could have been acquired if there was engagement in the activity in comparison to the engagement of an alternative option from which the offered return in benefit or value is higher (Fagan, 2020). For example, if a farmer chooses to grow paddy instead of growing wheat in his field, the opportunity cost of cultivating paddy is the value lost if wheat was cultivated by him in the field. As another example of opportunity cost, the situation of taking business decisions can be illustrated. In a situation of an owner of a business taking any sort of decision regarding the business, be it a critical one or not, the selection of one option over the other options makes the owner sacrifice the outcome of the not chosen option and this is the opportunity cost faced by the owner of the business.
The opportunity cost, I have to experience for taking this course on Macroeconomics is the sacrifice of time, money, and learning various concepts of Macroeconomics which I never would have learned if I did not take this course. I have taken this course so that I can do better in my business and this course will certainly help me in gaining awareness and knowledge regarding the concepts of Macroeconomics as a part of the discipline of Economics which plays a significant and crucial role in the formation of several business decisions.
Concepts of Economics are required in daily life in making various decisions, be it on the personal ground or in the professional field. Recently, I had to decide on my online business which had to do with the discipline of Economics. I was debating over buying merchandise wholesale or buying from estate sales. I decided to buy from estate sales because I could get unique and homogenous items. Goods or products in the estate sales are of high quality and are sold at reasonable prices (Taylor, 2018). In other words, I also discovered I can get more items for a lesser amount of money than purchasing items wholesale.
References:
Fagan, D. (2020, January 29). Real-Life Examples of Opportunity Cost. Federal Reserve Bank of St. Louis. Retrieved March 17, 2022, from https://www.stlouisfed.org/open-vault/2020/january/real-life-examples-opportunity-cost/
Taylor, A. B. (2018, August 21). 9 Best Things to Buy at an Estate Sale. Kiplinger. Retrieved March 17, 2022, from https://www.kiplinger.com/slideshow/spending/t037-s001-best-things-to-buy-at-an-estate-sale/index.html/
