Scarcity & trade-offs
You cannot have everything. Time, money and materials run out, so choosing one thing means giving up another. What you gave up is the opportunity cost.
8 free hours and £367 earned. The next free hour costs £10 of earnings.
Made-up numbers for one week.
Takeaway
- Scarcity is the starting point of economics.
- Every choice has an opportunity cost.
- “Free” still costs time, or something else you could have done.