Friday, November 30, 2018
Opportunity Cost of Tardiness
Everyone has been late to school before, but there are many opportunity costs that people ignore. A clear advantage is that you get more time to rest. Different people value this at different importance levels. Nevertheless, getting more rest is an opportunity cost one has to sacrifice for being on time to school. However, there are several costs that build up as more tardies are accumulated. The first thing is getting mailed warnings to parents, who are likely not going to be happy. The next punishment is a meeting with a school administrator, and then having to attend Saturday School. Finally, after all of that, there is the possibility of being transferred to an alternate school. The opportunity cost of being tardy is not having to worry about all of these.
The Pink Tax
The pink tax is a phenomenon where products marketed toward girls and women are more expensive than the same products targeted for men and boys. This applies to all sorts of products: dry cleaning, hygiene products, clothing, and even canes. It has been found that on average, women pay more than men 42 percent of the time, which adds up to thousands of dollars per year. Additionally, women already make only about three-quarters of what men make, so they have less income to begin with. This is a regressive measure because it more heavily burdens the group that has less income.
The pink tax is seen as a form of price discrimination. Price discrimination is charging consumers as much as they are willing to pay for an item. The pink tax is clearly an example of price discrimination because it gives women who are willing the opportunity to pay more for their goods. In a grocery store, when the same product is packaged in pink and black, those who are willing to pay more for pink have the opportunity to do so. Though this may seem ridiculous that pink costs more, it makes economic sense for companies if consumers are willing to pay it, which many are. Oftentimes, women don't know that they are actually being charged more, but nevertheless, their participation in price discrimination allows it to continue.
Works Cited:
https://www.listenmoneymatters.com/the-pink-tax/
The pink tax is seen as a form of price discrimination. Price discrimination is charging consumers as much as they are willing to pay for an item. The pink tax is clearly an example of price discrimination because it gives women who are willing the opportunity to pay more for their goods. In a grocery store, when the same product is packaged in pink and black, those who are willing to pay more for pink have the opportunity to do so. Though this may seem ridiculous that pink costs more, it makes economic sense for companies if consumers are willing to pay it, which many are. Oftentimes, women don't know that they are actually being charged more, but nevertheless, their participation in price discrimination allows it to continue.
Works Cited:
https://www.listenmoneymatters.com/the-pink-tax/
Thursday, November 29, 2018
Opportunity Cost of School Sports
Opportunity Cost is an economic term can be applied to everyday life. Opportunity cost is the loss of potential benefit if one choice is chosen above another. One way this can be used is in school, specifically school sports. Some benefits of doing school sports are that it helps create friendships, you get exercise, experiencing the thrill of competition, and depending on your view, skipping school on some days and not taking PE class for a year. Therefore, choosing not to do school sports has the opportunity cost of everything listed in the previous sentence.
However, choosing to do school sports also has opportunity costs. Skipping school can be considered as a cost too because of the tests and assignments you have to make up. You could also miss review days or lectures. Furthermore, choosing to do some school sports limits your competition to a few schools. For athletes who are nationally ranked in tennis, for example, electing to NOT participate on the school team could actually be more beneficial because of the opportunity costs. Instead of devoting time to play students from local schools and practicing with students from only the same school they attend, they could travel to other places and participate in tournaments and practice with whoever will optimize their improvement. This could be more valuable than the cost of taking an extra class.
However, choosing to do school sports also has opportunity costs. Skipping school can be considered as a cost too because of the tests and assignments you have to make up. You could also miss review days or lectures. Furthermore, choosing to do some school sports limits your competition to a few schools. For athletes who are nationally ranked in tennis, for example, electing to NOT participate on the school team could actually be more beneficial because of the opportunity costs. Instead of devoting time to play students from local schools and practicing with students from only the same school they attend, they could travel to other places and participate in tournaments and practice with whoever will optimize their improvement. This could be more valuable than the cost of taking an extra class.
Economics of School Attendance
When the fires compromised the air quality a couple weeks ago, our school was canceled for a day. I recall someone mentioning the school district facing a loss due to no attendance that day. I previously heard that public schools get paid for the attendance of their students. After some additional research, I discovered that California spends an average of $11,000 per student each year. With a district of 4,300 students shutting down even for a day, the district suddenly loses quite a bit of revenue.
Students often complain about not having certain days of school off. However, when we consider the impact of missing days of schools, we can see the financial incentive to have as much student attendance as possible. While we see a 3 day weekend as a chance to relax, the district has to face some heavy losses.
This can be further related to the emphasis on attendance at our school. If you are constantly absent, you will receive punishments such as Saturday school. These are to incentivize someone to show up to class, as they would not want to face such punishment. In college, for the most part, no one cares whether or not you actually go to class or not. This is because the school already has been paid, and is not going to directly benefit from you being in class.
It's interesting to see so much economics behind matters like school attendance. After taking this into consideration, I will definitely appreciate our days off more, as the school is sacrificing a massive opportunity cost in order to satisfy us, students.
Students often complain about not having certain days of school off. However, when we consider the impact of missing days of schools, we can see the financial incentive to have as much student attendance as possible. While we see a 3 day weekend as a chance to relax, the district has to face some heavy losses.
This can be further related to the emphasis on attendance at our school. If you are constantly absent, you will receive punishments such as Saturday school. These are to incentivize someone to show up to class, as they would not want to face such punishment. In college, for the most part, no one cares whether or not you actually go to class or not. This is because the school already has been paid, and is not going to directly benefit from you being in class.
It's interesting to see so much economics behind matters like school attendance. After taking this into consideration, I will definitely appreciate our days off more, as the school is sacrificing a massive opportunity cost in order to satisfy us, students.
The Economics of Santa Claus
As December is just around the corner, there's only one thing on my mind. Christmas. And with that comes another year of unanswerable questions about the man, the myth, the legend himself, Santa Claus. I’ve left out cookies and milk every year since I was little and somehow when I wake up Christmas morning, they've magically disappeared and there would be big presents perfectly wrapped under my tree. I was fascinated. As I got older, I started to question this process. I began to become more and more flustered every Christmas morning. There was one question that kept popping into my mind. Is Santa Claus real...ly paying for all of these presents? I was so curious on how he got the money and funding to pay for every kid in the world that celebrates Christmas, so I did some research.
With 1.9 billion kids in the world, that means Santa Claus is paying about $610 billion on toys alone. Keep in mind he also has to keep his sleigh repaired and has other costs, so who knows what the total cost becomes. To make sure his sleigh can travel around the world in one night, he has to make sure his energy source (whatever that is) can exert 9.3 million Megawatts. That's just enough energy to travel the world at 60 miles a second! You also have to consider where you would store 1.9 billion presents for a full year. You have to find a rental locker that can hold 8.6 million acres worth of presents, which is probably really hard to find! So this must get you thinking, how can Santa afford all of these?
Coca-Cola spends $3.3 billion each year on advertising, and if you’ve ever seen their Christmas ads, you know Santa is a big part of their holiday campaign. So this got me thinking, maybe Santa Claus uses endorsements to pay off these insane debts, especially his big ones like Coca-Cola. This would explain his frequent appearances in their commercials and explain how he could be putting a dent in those costs he has to pay. From Coca-Cola’s perspective, the potential loss of income for their company without Santa’s brand would make him worth a big paycheck, helping him pay off these extreme prices he has to pay.
With 1.9 billion kids in the world, that means Santa Claus is paying about $610 billion on toys alone. Keep in mind he also has to keep his sleigh repaired and has other costs, so who knows what the total cost becomes. To make sure his sleigh can travel around the world in one night, he has to make sure his energy source (whatever that is) can exert 9.3 million Megawatts. That's just enough energy to travel the world at 60 miles a second! You also have to consider where you would store 1.9 billion presents for a full year. You have to find a rental locker that can hold 8.6 million acres worth of presents, which is probably really hard to find! So this must get you thinking, how can Santa afford all of these?
Coca-Cola spends $3.3 billion each year on advertising, and if you’ve ever seen their Christmas ads, you know Santa is a big part of their holiday campaign. So this got me thinking, maybe Santa Claus uses endorsements to pay off these insane debts, especially his big ones like Coca-Cola. This would explain his frequent appearances in their commercials and explain how he could be putting a dent in those costs he has to pay. From Coca-Cola’s perspective, the potential loss of income for their company without Santa’s brand would make him worth a big paycheck, helping him pay off these extreme prices he has to pay.
Opportunity Cost in Fantasy Football
As we learned in class, an opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. We may not realize it, but this concept applies to a lot of daily activities we do. I realized that this specific concept is used a lot in one of my favorite weekly activities, fantasy football. For those who don’t know, fantasy football is a virtual ownership of a fantasy team composed of players from different NFL teams. Each owner drafts players to create their own unique roster. The players then earn points for their owner based on their performance in the live games each week. Owners play head to head matchups with other teams in the league every week and whoever gets the most combined points by the end of the week, wins.
Opportunity cost plays a big part in winning your matchups. Every week you are faced with lineup and roster decisions. In fantasy football, you are only allowed to start a certain amount of players. In most leagues, it’s one quarterback, two running backs, two wide receivers, one flex (wide receiver or running back), one kicker, and one defense. Although it’s only a 9 man roster, you can still have players on your bench. So every week you have to look at a players matchup and decide if he will be the best start for your team. For example, if one of your best running backs is going up against the best defense in the league, you have some risks to take. The best running back versus the best defense may mean a high scoring game, or it may mean that your running back will get very few points. This is where opportunity cost plays a big part in your decision making. You have to figure out the opportunity cost of starting a certain player over another to see what the best decision for your team is.
As you are the owner of this team, you become very involved. You will find yourself doing weird things like scouting players of the opposing team's defense and finding out small details like forced fumble average to make sure you're running back won't fumble that week. Doing your research and finding out the opportunity cost every week is essential to building a solid team. Although for some people with no hope of winning the championship (Kyle), it is better to just wait until the next year to start fresh.
Opportunity cost plays a big part in winning your matchups. Every week you are faced with lineup and roster decisions. In fantasy football, you are only allowed to start a certain amount of players. In most leagues, it’s one quarterback, two running backs, two wide receivers, one flex (wide receiver or running back), one kicker, and one defense. Although it’s only a 9 man roster, you can still have players on your bench. So every week you have to look at a players matchup and decide if he will be the best start for your team. For example, if one of your best running backs is going up against the best defense in the league, you have some risks to take. The best running back versus the best defense may mean a high scoring game, or it may mean that your running back will get very few points. This is where opportunity cost plays a big part in your decision making. You have to figure out the opportunity cost of starting a certain player over another to see what the best decision for your team is.
As you are the owner of this team, you become very involved. You will find yourself doing weird things like scouting players of the opposing team's defense and finding out small details like forced fumble average to make sure you're running back won't fumble that week. Doing your research and finding out the opportunity cost every week is essential to building a solid team. Although for some people with no hope of winning the championship (Kyle), it is better to just wait until the next year to start fresh.
College vs. Trade School
We all know that college is expensive. The average bachelors degree in the United States costs over $127,000. This, in addition to living costs, means that 70% of students end up taking out student loans to cover the cost. Also, spending four years in school means four years not having a steady income. College is the seen as the default path after high school, and while it you will make more money with a bachelors degree than just a high school diploma, is college actually the best option considered the cost?
Going to a four-year school isn't the only way to make money. Going trade school, which is a school that teaches a specific skill, like how to be mechanic or an electrician, can be pretty lucrative while not having the same costs as regular university. The average trade school degree cost $33,000, almost $100,000 less than a bachelors degree. The time is takes to get a trade school degree is also significantly less.
Technical jobs have a median salary of $35,500, while people with degree make on average $46,000. If you take into account student loans, tuition, college housing, and getting into the job market faster, trade school may be more financially wise in the long run. Also, because it's not really possible to replace your plumber with robot or someone oversees, the job security is much higher. Technical work is in high demand; not everyone will need to hire a computer programmer, but almost everyone will need a mechanic sometime in their life.
While trade school is often overlooked, its definitely not for everyone. While you can make a decent salary in a technical job, someone with a regular degree will, on average, make more money. Also, trade work is more dangerous. Climbing roof or handling live wires is a risk that not everyone is willing to take.
Blue-collar work isn't something that many people dream of, but it can be a smart decision for some. There are pros and cons for college and trade school, but some people just aren't cut out for college and vice versa. While it may not be right for everyone, trade school should be presented as an alternative option.
Work Citied:
https://www.thesimpledollar.com/why-you-should-consider-trade-school-instead-of-college/
https://www.forbes.com/sites/ryancraig/2018/06/14/blue-collar-trade-jobs-are-dangerous-but-not-for-the-reason-you-think/#75704444c639
https://lifehacker.com/trade-school-might-be-a-better-choice-than-college-her-1484086007
Going to a four-year school isn't the only way to make money. Going trade school, which is a school that teaches a specific skill, like how to be mechanic or an electrician, can be pretty lucrative while not having the same costs as regular university. The average trade school degree cost $33,000, almost $100,000 less than a bachelors degree. The time is takes to get a trade school degree is also significantly less.
Technical jobs have a median salary of $35,500, while people with degree make on average $46,000. If you take into account student loans, tuition, college housing, and getting into the job market faster, trade school may be more financially wise in the long run. Also, because it's not really possible to replace your plumber with robot or someone oversees, the job security is much higher. Technical work is in high demand; not everyone will need to hire a computer programmer, but almost everyone will need a mechanic sometime in their life.
While trade school is often overlooked, its definitely not for everyone. While you can make a decent salary in a technical job, someone with a regular degree will, on average, make more money. Also, trade work is more dangerous. Climbing roof or handling live wires is a risk that not everyone is willing to take.
Blue-collar work isn't something that many people dream of, but it can be a smart decision for some. There are pros and cons for college and trade school, but some people just aren't cut out for college and vice versa. While it may not be right for everyone, trade school should be presented as an alternative option.
Work Citied:
https://www.thesimpledollar.com/why-you-should-consider-trade-school-instead-of-college/
https://www.forbes.com/sites/ryancraig/2018/06/14/blue-collar-trade-jobs-are-dangerous-but-not-for-the-reason-you-think/#75704444c639
https://lifehacker.com/trade-school-might-be-a-better-choice-than-college-her-1484086007
Subscribe to:
Posts (Atom)
Namibia's Economy
Namibia is a country that not many people think about. It is a small nation, right above South Africa, that bases most of its economy on to...
