Applying economic concepts to my life Economics concepts have been a daily part of my life. The concepts apply to my poor choices, when I prepare food, and when I have to make decisions. Many of these concepts apply to my life in many ways. Five economic concepts that apply to my life are opportunity cost, shortage and surplus, rational self-interest, substitution, and income. The first economic concept that applies to my life is opportunity cost. I apply opportunity cost to my life when I have free time. I choose to hang out with my friends, so my opportunity cost is doing homework early and losing sleep. Sometimes I end up playing games on the computer instead of choosing to do homework or study. My opportunity cost is sleep and failing. Bad decisions causing opportunity costs. Opportunity cost has always applied to my life. The concept; Opportunity cost can also be applied to when I choose to eat out instead of preparing something to eat at home and my opportunity cost is losing money. Another opportunity cost in my life is when I decide to sleep late instead of waking up early, my opportunity cost could be to exercise, eat breakfast, do homework, do laundry, and get ready on time. I have a lot of opportunity costs that I always regret! The next concept that applies to my life is deficiency and surplus. When it comes to addressing food shortages and surpluses play a role. When I'm hungry, I go and make myself something to eat. I need to know how much to cook so that I can be full and not have a surplus of food once full. I also have to cook enough so that there is no shortage and it doesn't make me full. For example, I'm going to cook macaroni and cheese and I'm really hungry, so I have to think about what my dema...... middle of paper ......substitution most of the time when I go to make spending as many things become more and more expensive. The last concept is income. When I earn more I tend to spend more because I have more and I spend less when I earn less. Not only are opportunity cost, scarcity and surplus, rational self-interest, substitution, and income used in economics, but they apply to economics and everyone's daily lives. It applies to choices I make, like choosing between homework and going out with friends. I lose the value of doing homework and sleeping more hours, which is my opportunity cost. When I cook meals I experience a shortage or surplus depending on how much I cook. I use rational self-interest to make decisions that ultimately satisfy me when purchasing something. I use substitution to help me save money. Income I spend based on how much I earn.