Every hour of our time has a value.For every hour we work at one job we could quite easily be doing another，or be sleeping or watching a film.Each of these options has a different opportunity cost—namely，what they cost us in missed opportunities.

　　Say you intend to watch a football match but the tickets are expensive and it will take you a couple of hours to get to and from the stadium.Why not，you might reason，watch the game from home and use the leftover money and time to have dinner with friends？This—the alternative use of your cash and time—is the opportunity cost.

　　For economists，every decision is made by knowledge of what one must forgo—in terms of money and enjoyment—in order to take it up.By knowing precisely what you are receiving and what you are missing out on，you ought to be able to make better－informed，more reasonable decisions.Consider that most famous economic rule of all：theres no such thing as a free lunch.Even if someone offers to take you out to lunch for free，the time you will spend in the restaurant still costs you something in terms of forgone opportunities.

　　Some people find the idea of opportunity cost extremely discouraging：imagine spending your entire life calculating whether your time would be better spent elsewhere doing something more profitable or enjoyable.Yet，in a sense its human nature to do precisely that—we assess the advantages and disadvantages of decisions all the time.

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