Opportunity cost describes the cost of a good, service or action relative to others. It is the next best alternative that you could have had if you did not choose the first. For example, in an economy with only two goods A and B, if you choose good A, the opportunity cost is good B.
Anthony Carilli - The Economic Way of Thinking
Paul Cwik - The Foundational Difference Between Austrian Economics and the Mainstream
NOVEMBER 07, 2008 by SHELDON RICHMAN
Another presidential election has come and gone, only this time the results are astoundingly and, yes, satisfyingly historic. In light of our racial history and leaving aside political philosophy, I am overjoyed at what Barack Obama's election means. . . . President-elect Obama's many supporters and well-wishers have great confidence in his ability to solve the economic problems that vex American society. That ability is said to lie in his cool judgment, his good intentions, and his eloquence. Let us grant that he possesses all three. Valuable as they are, they will be useless if he attempts to solve our economic problems directly by an exercise of power. That's because there is something he does not have -- something no man or woman can have: the power to repeal the laws of economics. More . . .
A NEW article by Sheldon Richman
Related Freeman Articles
NOVEMBER 07, 2012 by ISAAC M. MOREHOUSE
Don't let the "fantasy" in fantasy football fool you: The game illustrates some crucial points about opportunity costs and comparative advantage. Isaac Morehouse has been keeping score.