Opportunity Cost

Opportunity Cost

by Grayson Kenner -
Number of replies: 1

This video is another demonstration that the government should have a laissez-faire ideal when it comes to the economy. Cars are more expensive today because the government puts regulations on safety standards and tariffs. While they did get rid of the CAFE laws of average fuel for cars, more needs to be done. There are two ways opportunity cost can be seen from the video. The first is that if the US made it easier to sell cars in America then more countries would be willing to trade with us, resulting in cheaper cars and more time that we can spend using resources on something that will profit us more. Opportunity cost makes it cheaper for the consumer and easier for the producer while making everyone richer.

In reply to Grayson Kenner

Re: Opportunity Cost

by Jackson Wiegand -
Bringing up a laissez-faire economy is perfect for this example. I agree with you that if the government was less restrictive on trade, everyone would be better off, especially those in the lower and middle class.
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