[This is part of the series: The Complete Guide To Economics 101.]
In this, there is a cold-hard fact that we all wish to avoid whenever possible.
It is this: In the face of scarcity, people face trade-offs.
For instance, time that I spend writing cannot be spent reading.
And sadly, time reading can never be spent writing.
- Money spent on food, cannot be spent on entertainment.
- Time spent with your kids cannot be spent at work.
- And part of the cost of going to school is income you give up by not working.
I give up half a Saturday every weekend during the summer to take the family swimming. And it is time I gladly give up.
Like I said: In a world of finite resources and time, people face trade-offs.
Others have said: “There is no free lunch.”
That could not be more right.