Economics Terms A-Z
In its simplest form, opportunity cost refers to the loss of the positive results of a decision when an alternative decision is made. It refers to the actual loss incurred by not choosing one option when another is selected. This cost does not only refer to money, but any lost benefits which may result in choice. A simple example of this would be that the opportunity cost of using a machine to make one product is the production of another product. That is, the second product cannot be produced, and its not being produced is an opportunity cost.
Opportunity costs are involved in almost all decisions that are made in economics, but not always. For instance, if the machine involved in the aforementioned example is built to only make one product, there is no opportunity cost involved, as no sacrifice of other products is needed; they couldn’t be produced anyway. There are explicit opportunity costs and implicit costs. Explicit costs refer directly to the money given out, and this money, which is given out, is itself the opportunity cost. Implicit costs do not refer to money, but to the choice not to allocate time or resources to other alternative uses.
Is The World Cup Really Worth Hosting?
With the world cup now over a week old, we have reached the moment when even those initially reluctant, those who decried it at its outset, give in to football frenzy and find themselves, at least twice a week, standing amid a crowd of similarly dressed strangers, screaming at 11 little men on a screen they can barely see. It is wholly inevitable, and few would disagree, thoroughly enjoyable. Browse our PhD listings for more opportunities
Elasticity and Inelasticity
Elasticity refers, in its most basic form, to how much an individual, a business, a producer or a consumer changes its demand, or amount of goods supplied, as a result of price and income fluctuation. It is a core economic concept and provides answers to some central questions, such as how much more or less a product will sell if the price is raised or lowered or how much these price changes will affect the sales of other products.
To Open Access or Not?
‘Open Access’ has been a bit of a buzzword in academic circles over the last couple of years. Its rise to popularity has come from a combination of factors including the increased price to access academic journals, as well as increased access to the internet, which has had the effect of speeding up the rate at which information travels.