vapers

Because economists are trained to think in terms of opportunity costs, the line blurs between reality and what-could-have-been. As an example, let’s circle back to housing. If you live in your parent’s basement rent-free and have a job that pays you $40,000 per year, I would say not spending money on housing is, for all intents and purposes, the same as making ~$52,000 per year. Why? Because paying for housing takes up ~30% of the average Americans budget! Not paying for housing is no different than having a 30% higher income. This is the point in class where I would *politely* remind the sophomores that thinking of an exception to the general statement I just made does not mean you need to raise your hand and point it out.