27 Outcome: The Cost of Choices

What you’ll learn to do: explain the cost of choices and trade-offs

In the previous module we introduced the concepts of scarcity, monetary cost, and opportunity cost. This section focuses on the actual calculation of those costs, which becomes important when you are trying to understand trade-offs in very concrete terms.

The specific things you’ll learn in this section include the following:

  • Explain how budget constraints impact choices
  • Calculate the opportunity cost of an action

Learning Activities

The learning activities for this section include the following:

  • Reading: Budget Constraints and Choices
  • Reading: Calculating Opportunity Cost

License

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Microeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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