Life Is An Economics Of Choice -By Dovish Okojie

Every day we find ourselves faced with a myriad of big and small decisions that shape our journey through existence. Just as in the field of economics, where individuals and societies allocate scarce resources to satisfy their needs and desires, we constantly make choices to allocate our limited time, energy and resources to pursue our goals and fulfill our aspirations.

In this economic framework of life, every decision we make represents a trade-off. When we choose to invest our time in one activity, we forgo the opportunity to engage in another. When we allocate our financial resources towards one purchase, we relinquish the ability to spend them on something else. These choices reflect the fundamental principle of economics: scarcity. Our time, energy and resources are limited, and we must make deliberate decisions to make the most of them.

The concept of opportunity cost also plays a crucial role in the economics of choice. Opportunity cost refers to the value of the next best alternative foregone when a decision is made. Whenever we make a choice, we must consider what we are giving up in return. For example, choosing to pursue a career in medicine means sacrificing the possibility of becoming an engineer. Recognizing opportunity costs allows us to assess the relative value of our options and make decisions that align with our priorities and long-term objectives.

Also, the principles of supply and demand are intertwined with the economics of choice in life. Supply represents the availability or scarcity of resources, while demand signifies our desires and needs. We constantly evaluate the supply of opportunities and weigh them against our demands to make choices that maximize our personal utility, fulfillment and happiness. Just as prices in the market fluctuate based on supply and demand dynamics, our choices are influenced by the availability of options and the importance we assign to them.

Risk and uncertainty also come into play within the economics of choice. Every decision we make carries a level of risk, as the outcomes are not always predictable or guaranteed. We must assess the potential rewards and risks associated with each choice and make informed decisions based on our risk appetite and desired outcomes. Life presents us with uncertainty, but embracing calculated risks is often necessary for personal and professional growth.

It is important to acknowledge that the economics of choice is subjective and deeply personal. What holds value and significance for one person may not hold the same weight for another. Each individual possesses their own set of preferences, values and circumstances that shape their decision-making process. These factors, combined with external influences such as cultural, societal and environmental factors create a diverse range of choices and outcomes.

Life can be seen through the lens of economics, as it revolves around the allocation of scarce resources, the consideration of opportunity costs, the interaction of supply and demand, and the evaluation of risk and uncertainty. Understanding that our decisions are driven by these economic principles helps us navigate the complexities of life, make choices that align with our values and goals, and strive for a fulfilling and prosperous existence.

Dovish Okojie is a Management Consultant and Public Affairs Commentator. He writes from Abuja and can be reached on dovishokojie@gmail.com