What you need to know...
- What is meant by opportunity cost? - check out the video below - The first few minutes in the video are the most important!
Opportunity cost & the banking bailout
- Since 2007 the UK government has made several interventions in the banking sector, spending billions of pounds to support the industry
- What is the opportunity cost of spending £38 billion pounds of taxpayers money (click on the image opposite to find out)?
Note: £38 billion is just a fraction of what has been spent so far to support the banking sector!
Stretch & Challenge
What is wrong with this picture? Think opportunity cost!
- Economics is about looking at things from different angles and other people's perspectives.
- Now that you understand the concept of opportunity cost it'll hopefully influence how you think about things and therefore your behaviour i.e. the choices that you make on a daily basis.
- I would like you to write me a blog entry using the forum link on the website of how the concept of opportunity cost has influenced you in your day to day activities, since understanding what it means.
- Remember that opportunity cost occurs for all choices, no matter how big or small.