If you ever go on to study economics in college you will no doubt take an introductory Microeconomics module. Microeconomics is the part of economics which focuses on the decision making of individuals and firms. It often goes without mention that economics is a study of people and their choices and not just figures and stats regarding the entire economy of nations, and a key concept within the study of Microeconomics is Opportunity Cost.
Opportunity Cost is the cost which individuals occur when they chose to do something instead of something else. In this case the example is going to a concert or going sky diving with US rapper Flo Rida, if you chose to do one, you can’t do the other. While this may seem like a simple concept a lot of people actually don’t fully understand it because they tend to think of it too simplistically e.g. I did X so I couldn’t do Y.
However, Opportunity Cost is a much larger idea than just that because technically you could do anything with your time and energy and going sky diving with Flo Rida is possible. Now I don’t mean it’s possible in a “reach for the stars kid, you can do it!” kind of way I mean it more in a “Flo Rida exists, you exist, and sky diving exists; therefore it’s not impossible” kind of way. Opportunity Cost in this sense can technically be seen as infinite because it is just the cost you incur when you do anything instead of anything else.
By Daragh O’Leary