Opportunity Cost: People Face Tradeoffs

To get one thing, we usually have to give up another thing.There is no such thing as a free lunch!This is the phenomenon of Opportunity Cost.
People face trade offs to survive.
Food vs clothing: for food we have to give up clothing, so this becomes a opportunity cost.
Leisure time vs work: we can't work and simultaneously have leisure time, so this becomes our opportunity cost.
Efficiency vs equity: Efficiency means society gets the most that it can from its scarce resources. We give up efficiency for equity and in turn opportunity cost incurred.
Making decisions requires trading off one goal against another.