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Are strawberry smoothies considered a good idea by economists? Instead, the flavor of the Kiwi will depend on how good it is, as well as other options. This concept is called opportunity cost.

What is the source of opportunity cost in everyday life?

Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, writes about opportunity cost in the recent Page One Economics: Money and Missed Opportunities article.

The Scoop on Scarcity

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In life, nothing is possible. There is a scarcity factor involved. In spite of our unlimited wants, we have limited access to goods, services, money, time, and opportunities. According to Caceres-Santamaria, the concept is what drives choice-and, by extension, costs and tradeoffs.

She gives the example of choosing to buy a $7 smoothie at the mall. She believes that most people would simply view the choice as a question of whether they want the drink or not.

Rather than wearing "economist glasses," she suggests looking at the decision differently, asking:

1. What is the value of this to me?
2. What do I give up now in order to have it?
3. What do I give up in the future to have it now?

Costs That Are Seen and Unseen

The trade-offs a person makes can also affect their professional and personal well-being over time, despite our tendency to focus on immediate financial matters.

Aceres-Santamaria suggests that in the process of decision-making, we should not only consider explicit alternatives - choices and costs - but also implicit alternatives - i.e., "unseen" opportunity costs.

The idea is to be able to think beyond the current situation and consider other options for spending the money.

Do you have any other examples of opportunity costs?

• A student spends $20 and three hours at the movies the night before an exam. Time spent studying and money spent on other activities are examples of opportunity costs.
• The farmer decides to plant wheat, but the opportunity cost would be planting a different crop or using the resources (land and farm equipment) in a different way. 
• In Nigeria, people take the train instead of driving to work. The train takes 70 minutes and the road takes 40 minutes. Those minutes could have been spent doing something else.

Is Opportunity Cost a Big Deal?

Losing study time or spending $7 on a smoothie may not seem like a big deal, but how about bigger choices like buying a more expensive home versus a starter home, or spending $1,500 more for an upgraded trim package on your next car?

Aceres-Santamaria points out that when making high-priced purchases, opportunity costs are ignored even more. As an example, the $1,500 upgrade to the base car price of $18,500 might be considered a relative value by a consumer.

It might be more useful to consider what else $1,500 can buy, rather than comparing a more expensive vehicle with its fancier configuration.

Why the Rush?

"Most of our money decisions involve immediate consumption or consumption sooner rather than later," observes Caceres-Santamaria. Today's excitement is worth much more than thinking about tomorrow's."

As humans, we are impatient. Immediacy of a promised benefit often tempts us over a long-term payoff.

There is value in examining the future value of money-a concept that many of us have heard about in retirement plan literature.

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The Future Value of Money

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Example 1: The one-time windfall

Let's say you got a windfall of $4,000 and you want to take a trip with it. Can't you? Considering the opportunity cost, there's no loss for you. Since this is found money, you're not losing anything.

If you invested in an income-producing product at 3% annual interest, compounded monthly, you would earn $5,397 in 10 years.

In five years, your funds will have grown to $6,270. These examples do not take inflation into account.

That's an added benefit if you think about it financially. Moreover, you should consider the experiences that an extra $1,400 or more-the future earnings on your $4,000-would enable you to have.

Example 2: Small, regular savings over time

Investing one lump sum over a long period of time. Daily purchases, such as your $3.49 caffè mocha three times a week, may not be considered when calculating the opportunity cost. How much money would you have if you invested $54 every month instead of spending it?

With $54 per month invested and 3% compounded monthly, you'd have $7,619 to dip your doughnut into in 10 years if you dropped the coffee (carefully!).

Do you think it's too long to give up that regular mocha? Even by reducing the timeframe by half, you will still save $3,554. Please note that these figures do not include inflation or taxes.

Even when you consider that spending $4.49 on a caffè mocha habit over time dwarfs spending $4,000 on a vacation.

Would you be interested in testing your own opportunity cost what-ifs? Aceres-Santamaria advises consumers to avoid "autopilot" mode whenever possible. You can start small - even with a pack of gum - and think of as many different uses for your money as you can. 

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how to grow instagram without hashtags

how to grow instagram without hashtags, Besides posting high-quality content, writing captivating captions, and using appropriate hashtags, there are seven other things you can do to improve engagement.

Her customers are on Instagram, but they aren't using community hashtags because they are on Instagram to share content with friends and family. One of my friends runs an online shop, and she knows that her customers are on Instagram. She doesn't have time to sift through the billions of posts under #love to find some customers who might be interested in her gorgeous homeware.

As a small business owner, I am sure you are in the same boat as I am.

Seven different ways to reach your target audience…

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1. how to grow instagram followers

In spite of reaching 700 million users (1 billion as of December 2018), it's easy to end up cycling around the same group of people on Instagram, and it can be challenging to break out of the same group. Using the six-degrees-of-separation theory, you're closer to your followers than you think; you should engage them.

"Six degrees of separation describes the idea that everything living and everything else in the world is only six steps or less from each other, so that links between any two people can be made within six steps."

According to Wikipedia

Check out the people who liked/engaged with your most recent post. Don't forget to show some love back to those people to keep them engaged and coming back for more, as well as looking at who has engaged with their posts. There will almost certainly be new accounts that you don't follow or follow that don't follow you, as well as a cross-over of users that you're already familiar with. Take a look at each of the accounts, and if they seem to fit your target audience, show them some love. You shouldn't look at their follower list as they may have some spam and bots following them; it's better to look at the comments as you can tell if there is a real interaction.

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how to get more followers on instagram cheat, Do the same with your competitors or accounts with similar customers, as again, these people are interacting with the content of these brands, so they may well be interested in yours as well.

3. Explore the explore tab 

The Explore tab (the magnifying glass) is often overlooked, but it can help you gain followers. Instagram's Explore tab is not exclusive to large accounts, as popular belief would have it. Each Explore tab is different for everyone, Instagram chooses the content based on what it believes you'll enjoy. You will see more accounts fraverage Joe, Instagram will show you more accounts from that  (even algorithms make mistakes), then Click on the three dots in the corner and click "see fewer posts like this" if it is showing you content you do not like (even algorithms can make mistakes). to engage with!

4. Find new users through the accounts you follow 

I believe this tab is underused the most, since people don't often think about checking in on the people they follow. If you're tracking your target audience and your competition, then you're going to find this super useful.

If you click on the heart at the bottom of your screen, you'll see "Following" and "You". You will always default to "You", but if you click "Following", you will see what the people you follow are doing in real time!wing are up to in real time! The comments, likes, and accounts that they follow.

Sadly, this is also where you find out that you might admire some accounts that are using poorly targeted bot activity, which is characterized by generic comments ("great shot", "nice pic", "love this") and liking the most random selection of pictures. Don't be swayed by these posts and instead look for genuine activity, such as what people are commenting on, what they like, and whom they follow. You have just found yourself some more accounts to interact with if you like what you see. You'll also discover what makes your audience double tap!

5. Discover people and suggested users

"Discover People" are accounts that Instagram recommends that you follow. You can access this by clicking the little plus sign in the upper left corner of your profile. You will then see the "Discover People" tab. By connecting your smartphone contacts and Facebook accounts, you will see people you know in "real life" but do not yet follow. You can switch off the people you want to follow in your address book and Facebook by tapping on them. In addition to showing you people who follow you that you might like to follow back, Instagram also shows you an account selection based on your activity and that of your followers. It's fine not to follow everyone, but it's nice to take a look at those who are suggested and engage with some of their posts. When you aren't interested, click "Hide". It does seem like there is a glitch at the moment in that the posts reappear, hopefully, Instagram will resolve this soon.

Using the drop-down arrow next to a user's blue follow button is another useful user tip. Instagram will suggest users based on the profile's similarity to the one you're looking at, and this can be a great way to discover new people to follow and engage with.

6. Places

Having a clear understanding of your customer base will enable you to think like them. List all the places you believe your client has visited.

Take the example of a business that sells cashmere wraps to affluent women 30 and older. You need to imagine yourself in their shoes. Is she a regular at Champney's? By typing "Champney's" into the PLACES section, you will find multiple Champney Spas, and you can work your way through each of them, as well as the people who have tagged themselves at those locations, engaging and/or following the people who you think are part of your target market.

"Friends and family" Instagram users, in my experience, don't tend to use a lot of hashtags, but like check-ins on Facebook, they'll geotag themselves.

7. Brand Tap Tags

From number 6, consider where your customer may shop - not necessarily a competitor, but other places and things they may be interested in. Make a list of them and start looking up those businesses on Instagram. Maybe your target customer also shops at TOAST. To view TOAST's pictures, click on "Photos Of" (the person in a speech bubble). An image will show up that TOAST tagged. This is a new group of people to engage with who have tagged TOAST because they own clothing from the brand and want to share it with the world. Tap tags are more commonly used by slightly advanced Instagram users, so this won't work for everyone.

I hope these six steps are helpful to you. To improve your engagement in just thirty minutes per day, sign up for my newsletter and receive a 16-page e-book filled with Instagram tips and a simple workflow.

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