26 Outcome: The Cost of Choices (19/160) -- Microeconomics

26 Outcome: The Cost of Choices What you’ll learn to do: explain the cost of choices and trade-offs In the previous module we introduced the concepts of scarcity, monetary cost, and opportunity cost. This section focuses on the actual calculation of those costs, which becomes important when you are trying to understand trade-offs in very concrete terms. The specific things you’ll learn in this section include the following: - Explain how budget constraints impact choices - Calculate the opportunity cost of an action Learning Activities The learning activities for this section include the following: - Reading: Budget Constraints and Choices - Reading: Calculating Opportunity Cost