Opportunity Cost Definition

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	A Few Related Terms


	Keynesian Laissez-faire Economics Zero-sum Game


	Opportunity Cost Term category: Economics In 10 words or less: What you're trading off when you take an action.


	Definition: An accounting/economics term referring to the value of something given up to pursue something else. StockJargon Advice: An example of opportunity cost would be going to the movies. The cost of going to the movie is $9.00 or whatever ridiculous amount of money your movie theater charges. The opportunity cost would be something else you could have done with that time, such as studying. Investors and businesspeople must weight opportunity costs when making decisions.


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	Related Books


	Freakonomics by Steven Levitt A Random Walk Down Wall Street by Burton Malkiel The Wealth of Nations by Adam Smith The Rise and Decline of Nations By Mancur Olson


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