An opportunity cost is the value or cost of an alternative forgone by taking another course of action. It is the benefits that would have been received by taking a different course of action. Every choice we make in life has an aspect of opportunity cost, this is because there is another course of action that would have be taken instead. Below are some examples of opportunity cost from day – to – day life;
Watching a late movie:
The opportunity cost of going to bed late because of watching a late movie, is the number of hours lost that would have been spent sleeping. I usually make such a decision when the following day I’m off and can sleep during the day in order to recover back the number …show more content…
The opportunity cost of finishing early is the value of hours I lose by not working still late. It is the value of those extra number of hours that would have worked on that day. I make this decision if the following day I’m starting work early because I do recover the number of hours for the week. This opportunity cost is same as a monetary cost because the number of hours lost can be translated in money because I get paid per hour.
Eating breakfast late:
The opportunity cost of eating my breakfast late is the energy that I would have been gaining every morning if I was having it early. I make this decision because I find it hard to have breakfast early. This opportunity cost is not the same as a monetary one because there is no direct money involved. On the other side, this can be translated into monetary terms if not taking breakfast can affect the rate at which I perform my duties. This means the company I work for
AN INTERNET …show more content…
Free trade is the relaxation of trade boundaries which is an agreement between two or more countries. The agreement takes into consideration the tariffs involved, imports and exports, as well as the laws that regulate the trade. Most countries are engaged in free trade due to the benefits involved. But this does not mean there are no disadvantages experienced in this trade.
Advantages: Free trade makes it possible for people from another countries consume goods and services not produce within their countries. This is possible through imports that countries can make. Natural resources are not distributed evenly around the global, making it difficult for other countries to produce goods and services they need. Due to imports and exports involved in free trade, this can lead to increased competition for local businesses. Increased competition can result to reduced prices and quality improvement for goods and services. Free trade can also create jobs for people, this can either be direct employment or due to the fact that the economy of countries involved performs