Microeconomics Essays Examples
We make financial decisions based on the role of scarcity virtually every day. Upon taking this precious course in Microeconomics, I am interested in developing a sound understanding of personal finance, especially understanding and applying the economic rule of opportunity cost to my personal investment plan. I suppose that this principal rule is the most essential for everyone, a student or an employee alike.
The rule of opportunity cost regards all the money we spend in different things and services that undoubtedly affect our financial wellbeing. To have a satisfactory financial balance, grownups need to think critically before investing their financial resources, and for that prupose knowing the basics of the rule of opportunity cost is tremendously helpful when there appears a need to make a financial decision.
The opportunity costs reflect all the costs, including indirect costs, that arise from one’s action of buying something. Thus, an opportunity cost means everything a person might lose if he chooses the specific alternative instead of another opportunity. The same rule applies to choosing a college, and paying tuition to study in that college with the aim of developing successfully to be able to compete on the job maket in the future. A good choice in college, for example, means that a person will definitely have more benefits than drawbacks. On the other hand, if someone decides to save the money and opt for a college with less tuition, he or she can earn interest on that, but most likely will have to study harder, with lots of independent work, during the college. The interest money can add to one’s financial wellbeing.
Both ways, the student gains and loses something as soon as he decides to take the course. The opportunity cost is that choice of your decision to take Microeconomics instead of Philosophy.