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Joined: 28 Dec 2005 Posts: 12651
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Posted: Mon Sep 23, 2013 11:34 pm Post subject: Rib-Eye Steaks (Inflation or Income) - Real Opportunity Cost |
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PeakTrader:
"Explosion of microbreweries, since 1970s."
That may include a measure of wealth.
For example, rib-eye steaks may be more expensive, in part, because more households became affluent households.
In 2007, 20% of U.S. households had income of at least $100,000 a year.
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It’s more likely the composition of national income changed rather than the composition of a cow.
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PeakTrader:
"...the average of the median individual incomes in New York and Kings County in 2011: $80,326 per year, which works out at $40.16 an hour."
The way they measure the opportunity cost of standing in line doesn’t make much sense, unless it displaced paid work.
It may be more appropriate to calculate how much your leisure time, rather than labor time, is worth.
It may be cheap for some people to stand in line for several hours and expensive for other people.
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Someone standing in line for two hours may call in sick and still get paid, for eight hours, or rather than mowing the lawn, they can pay someone $20 to mow the lawn and stand in line for two hours (or $10 an hour).
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