When economists refer to “opportunity cost”, they mean the alternative use of this resource. In general, the opportunity costs of choice represent the value of the best alternative given up, in a situation in which one must choose between several mutually exclusive alternatives under conditions of limited resources. If you spend time watching television or if you spend time and money on a movie, you cannot spend that time reading a book at the library and in the case of cinema, you cannot spend money on something else. All production involves a cost. This cost is not only measured in terms of money but also in terms of resources used. The resources used to produce a good or service correspond to the actual costs of that product. For example, road construction. In this type of activity, the real cost is that of the human resources, capital and natural resources consumed. Road construction requires the work of many people. The capital resources that these people use include equipment, machines, and tools. Road construction also requires natural resources, such as bitumen, gravel and sand. Since resources are limited and human needs unlimited, individuals and societies must make choices about what they want most or, more simply, "What would you have done if you had you didn't do the choice you made". Every choice involves costs. The cost of production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources required to make it. its manufacture. The cost can include any factor of production (including labor, capital or land) and taxation. Resources used for road construction cannot be used for other activities. fact, all the resources used to build the road... middle of paper ... are used to manufacture or do something else, which can then be sold to another party Consumer goods are the final goods. In principle, these goods are things purchased by average customers and will be consumed or used immediately. This contrasts with other types of goods, called intermediate goods. Intermediate goods are products manufactured or sold that will be used in the manufacture of something else by another manufacturer or assembler. If a nation increases its production of consumer goods, its people will enjoy a better life today. Choosing between three employers is an example of a choice a company must make. Each person and society in general must make a choice and understand what can be done to benefit from it. Every economic decision requires a choice, economics is a study of trade-offs. When you analyze every aspect of a trade-off, you can make better decisions.