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The economic problem means that, both individually and socially, we must make choices and that all choices have costs. Economists understand that costs are not only those that we pay in money (âexplicit costsâ), but also the costs of the things that we give up to get what we want (âimplicit costsâ). Letâs say that you have the choice of going to a movie for three hours with your friends (which costs a total of $15 for the ticket and snacks) OR you can babysit for the same time for $10 an hour. You choose to babysit. What are the TOTAL costs of this decision to you (donât forget, costs are more than money, they are what you give up)? (Name and describe at least four.)
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The economic problem means that, both individually and socially, we must make choices and that all c...
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