Selection, Insufficiency And Opportunity Cost Essay

1023 Words Apr 18th, 2016 null Page
The idea of selection, insufficiency and opportunity cost is what economics is composed of. If we have to give up one good in order to acquire another, then the good is scarce. However, we can only make choices if they are available to us and the price of any choice is the worth of the most ideal alternative that has to be foregone and in economic terms, it is the opportunity cost.
Three examples of opportunity cost.
Like everyone else, I continually find myself faced by the need to make choices in my private, social and professional life as illustrated below:
Examples:
1. I was searching for a job some years back and I finally got two offers at the same time. I really needed a job but it was so overwhelming for me to decide which one to pick. My family tried to help but they wanted me to consider the pay check, however, that was not all that I cared for. By use of a two column table (job 1 and job 2) I evaluated the opportunity costs which included insurance, retirement benefits, culture, career development, vacation, and working hours. A multi-cultural organization was one of my main considerations and the job I finally fell for offered that kind of setting and gladly, 15 years on, I am still working in the same company.
2. My other job is small scale farming and often I am caught up between the choice of one or the other because the garden is small. This season I had to choose between kales and pumpkins; what made it more challenging is the fact that I have never grown…

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