Budgets and Opportunity Cost

In the previous entry, we talked a little about opportunity cost. In short, it’s what someone gives up in order to acquire something else. What does that have to do with budgeting? Start with the plain-sense definition of a budget. Most people think of a budget – quite correctly – as a list of planned [...]

Source: http://thebadeconomist.com/2012/01/19/budgets-and-opportunity-cost/

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