Opportunity Costs

What economists mean when they talk about opportunity costs is sort of basically giving up something to get something else done, but after all you gave up that, in order to get something else that you wanted. In other words is losing something, but yet you know you will gain something else instead of that and probably it could be better since you chose to gave up the first thing in place. Opportunity cost is the cost of pursuing one choice instead of another. Every action has an opportunity cost. For example, someone who invests $10,000 in a stock denies oneself the interest that one can easily earn by leaving the $10,000 dollars in a bank account instead. Another example is the decision of attending college after finishing high school or just working. If you only work you will make money for yourself, but yet if you decide to work and use that money to pay for college, after you graduate and work on what you major on you will earn more money. You gave up only working and making money for yourself, for something that will pay off more at the end.

An example from my own life is being on a team. I gave up the opportunity of having a job and earning money for my own needs, but yet being on that team will look better on my college application and have better opportunities to go to a college of my choice. I gave up the opportunity to earn money for a better chance of going to a college that I want, which once am in the college I wanted, I can look for a job and find something that I like and maybe even earn more money.