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Glossary
What Do You Want More?
An Introduction to Opportunity Cost

Decision #1

Our examples so far have had very short-term opportunity costs, so let's consider an example that involves more long-range costs.

At the beginning of this lesson, we asked you if you would rather go to college or start working right away. Do you remember what your answer was? There is no right answer to this question, as it completely depends on what your specific goals and wishes are. Even still, there are various aspects to consider; that is, there are opportunity costs to consider. We'll explore this further in the remaining exercises on this page.

Consider this scenario. You are graduating from high school in May, along with your two best friends, Jon and Amy. Click here to see what Jon plans to do after graduation.