Alex has worked hard her entire life preparing for the perfect future, even learning how to play cello while playing lacrosse. She’s landed her dream internship, but it’s a very high stakes position and an extremely stressful environment.
While this decision troubles Alex, Phil steps into play a board game that Alex was just about to win. Alex has set Phil into a position to all but guarantee victory, but Phil decides to do something unexpected. While Phil uses this as a metaphor for Alex’s internship, it also represents the role of opportunity costs in our everyday decisions.
Every time we choose to do something, we are also choosing NOT to do something else. SO if Alex takes the internship, she’s giving up a relaxing summer that could be a much needed break for her. On the other hand, if she takes the summer offer, she may be missing out of an internship that could greatly influence her future career.
See more: choices, human capital, opportunity cost, preferences, risk aversion, scarcity, tradeoffs
Economics of Modern Family 