BASIC MICROECONOMICS

Create an explanation on how microeconomics impacts your daily life. Use the
example above as your reference. Your output must be at least 3-4 paragraphs and contain
the required details asked by this activity. Rubrics will be uploaded in the G0ogle Classroom
that will serve as the basis for scoring. Upload your output before due date. Follow the school
format for submittals.

How microeconomics impacts our daily life?

When we hear the word microeconomics, we can say it is how individuals and
businesses make choices on how to best use limited resources. But the question is, how this
microeconomics affects our daily lives?

Almost like many other students, limited time and money during the school semester
forces me to make choices. Especially during this pandemic that makes our life difficult. We
need to choose on how to study if there is no face to face class and the only way is to use social
media. Likewise, we all know that using social media needs internet connection which everyone
are incapable of. We cannot buy or do everything we want, so we make calculated
microeconomic decisions on how to use limited resources to maximize personal satisfaction. 

In applying opportunity cost concept in my daily life, it helps me to organize my time and

money. For example, our scheduled class is every Tuesday, Thursday and Saturday. I
usually favor to study during weekdays with no classes because the opportunity cost of studying
on these nights is less than studying on Friday or Sunday nights. It is when usually more
exciting events are happening. During those scheduled class, I chose to live with my auntie
because she has an internet connection which is needed for online class. The opportunity cost
of living with her is less than spending money for load data because it cost too much. On the
other hand, if my alternative on weekend is to remain home and do household chores, i'd like
better to study because to me, the worth of studying is quite the worth of above alternatives.
So, opportunity cost and making choices depends on my alternatives.

The fact that there's an opportunity cost to each transaction means we all face trade-

offs within the decisions we make. As a society, we cannot have everything we wish then to
possess more of one thing, we may need to have less of another. This concept of trade-offs is
one that may return throughout our economics course. It will also arise after we take a look
at the management of the national economy as governments face trade-offs moreover as
individuals. They may want low unemployment and low inflation, but less of one may mean
more of the opposite. Remember, however, that opportunity cost isn't a financial cost - it's a
resource cost of what's given up in real, as resist money terms.