1. Opportunity Costs
1.1
A Matter of OpportunitiesThe lack of alternative opportunities reduces the cost or enhances the attraction of a given action. On the other hand, the abundance of alternative opportunities increases the cost or reduces the attraction of a given action.
1.2
Opportunities PayJob security of American workers whose opportunity costs are higher but whose labor productivity is no higher than foreign workers will be increasingly threatened by foreign competition.
1.3
The Case for SweatshopsSweatshops in low wage countries supplying goods to American companies may offer better paying jobs than other local firms.
1.4
Why Do Immigrants Own Inner-City Stores?Inner city stores attract immigrant owners who are risk takers and have lower opportunity costs of alternative employment.
1.5
Windfall ProfitUnexpected market gain resulting from uncontrolled circumstances might serve as incentives to correctly allocate scarce resources.
1.6
Identifying comparative advantageHow to plot production possibilities curve (frontier) and identify comparative advantage in a two-persons two-goods economy.