Question

You've heard it said that "TIME IS MONEY"...so why does time have more value to some people than others. Discuss using economic concepts.

Answer 1

Tiem has more value to some people than others because of their different opportunity cost. For example, Bill Gates and his school friend went for fishing together. They will spend the whole day fishing. In that complete day, Bill's school friend who is a teacher himself would have earned his one day salary. So, his opportunity cost of fishing is his one day salary which can be maximum of $1000. But, on the same day, Bill might have earned billions. The opportunity cost of Bill gates spending a day fishing is in billions of dollar.

It is not that particular time but the opportunity cost which makes that time valuable. If the person is not spending his time then what he would be doing other than that, how much could he earn in that time is what differentiates one person's time form other. The more he can earn the more valuable his time his.