I thought that this video was very informative as well as deeply rooted in the basics of opportunity cost. Being able to hear the explanation of real examples, in real life, in real time further deepened the impact that this video had on me as I looked for signs of opportunity costs in each situation.
Opportunity costs are everywhere essentially. In small, everyday decisions, there is one second greatest option that had to be turned down. In the case of the video here, my primary focus landed on the restricted trade and safety standards of cars in America. The goal: keep people safer by mandating protective technology in cars. Though this goal has very good intentions (which, as we have seen, are not always reliable if not backed up by tests or predictable outcomes) the opportunity costs, as a person considering buying their first car in this day and age, are vast and not often worth it.
The opportunity costs start to unravel before one's eyes if a deeper dive is taken into the effects and advantages of American car standards. The outcome, safer cars with updated and high-tech equipment. However, the converse shows that the opportunity cost of this is cars with less life span. The introduction of so much mandatory technology leads to compromises in other essential parts of the car, raises the cost of maintenance, and lowers the time the car can last.
Cars produced in foreign countries that do not have these safety regulations serve their purpose as simple transport. Though the opportunity cost here would be giving up the comfort and security of the mandated safety features of American cars, the end product proves to be more efficient and longer lasting.