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.
- The Freight Shipping Industry
Alarming Trend due to COVID-19 – Maritime Piracy on the Rise
Speaking of current issues under the influence of COVID-19, events on the water, or sea, which is another parallel world with its written and unwritten laws, are somewhat undeservedly forgotten. Looking at the latest data, we need to talk about a very worrying trend over the last year. Although global maritime piracy is not as high as between 2009 and 2012, in 2020 the number of pirate attacks and attempts has increased by 24% compared to 2019.
- Economics Terms A-Z
A tradeoff refers to a situation in which in order to come closer to reaching one objective you must sacrifice another. In other words, when people or societies are facing a tradeoff, two or more goals are at odds and cannot be satisfied simultaneously. Any progress towards one of the goals is (at least partially) offset by a deterioration of the prospects of reaching another goal.
- Further Education
How to Survive Your Economics PhD Thesis Defense
Once you've handed in your thesis, you still have one big challenge to overcome before you're finished with your PhD: the thesis defense. This is an opportunity for you to present your research publicly and to answer questions about it from your thesis committee. The process can be tough going, especially if you've never had to do anything like this before. That being said, there are a few ways to make sure you survive – and even perform very well in – your thesis defense.