These graphs are essentially representing how each choice we make impacts something else. Whether it be opportunity cost between tonnes of wheat versus amount of cars produced; or even quantity versus quality. Also these graphs represent how technology has effected production so greatly, which adversely shows how production and or lack there of effects growth. What the graphs can show us is that when we make a choice to purchase something, one good instead of another it effects something else. When we all choose to buy say fresh water at one time incase of emergency, then water can become scarce; price goes up and somehow another firm must start to produce bottles of water. The opportunity cost of this company now producing bottled water instead of say wheat is now effected. The graphs show us how our choices effect each curve.
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| source: http://www.eia.gov/oiaf/servicerpt/eppats/ppusm.html |
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| Stocking up on bottled water could effect the product possibilites curve |
I myself recently have been incharge of taking care of myself in every way, paying bills, cooking cleaning, groceries etc. I've found that when you're on your own, each decision you make is more and more crucial and takes more and more time to make. At the grocery store I find each decision to be difficult; should I stock up on this now while it's on sale? How long can I go without something? Whether or not to eat out for a meal, go out with friends for a night out, getting some new clothes. I've come to realize now that I'm on my own, every choice I make is a big one.
When I chose to return to school my biggest opportunity cost decsions was travel. The money and time it would take to go visit my family in Bermuda. Paying for school meant less money for flights, and being in school means less time to be able to be away from school and with them. I'm lucky to be online so it is a cheaper decision as well as one that makes it easier to visit them more frequently. I certainly am not over in Bermuda as much as I'd like to be; but I do realize it's very difficult to mange school and travel. The ability to understand opportunity cost is important; I know that returning to school is a good decison, though the cost of school means less money for travel I know that in the long run an education and better job can mean much more income and money for later travels.
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