The opportunity cost of grading, from a students perspective

Even though they do not answer the question correctly on their exam, it is obvious when a student understands the concept of opportunity cost.  When a student realizes what it takes to get a C in the course, they sometimes shut down and decide to not do any more work.  These students realize completely what opportunity cost is.  By getting the minimum grade required, they are not only evaluating their opportunity cost (maybe drinking, or seeing their friends) but they are also cost minimizing.


Production theory (of which cost minimization is a component) will be covered in later posts, however this idea of cost minimization also applies to schoolwork!  By recognizing that a C is needed (or a set level of output/production) and then doing the absolute minimum amount of work to attain that goal, students have effectively cost minimized.  Again, it astounds me everyday how relevant economic theory can be to a student's life, and yet have them struggle to fill in the correct bubble come exam time.