Gary Becker was one of first economists to reconsider the traditional theory of consumer choice, which assumes that consumers choose among various combinations of goods and services based on their money prices. Instead, Becker assumed that consumers engage in activities that require the expenditure of their time as well as the expenditure of money for one or more goods and services. Although a consumer’s time does not command a money price, it has an opportunity cost. Let’s say you wanted to attend a basketball game. This consumption activity could require the purchase of a ticket, a program, food and drinks while at the game, and parking in a nearby lot. Also, let’s say you will need to give up four hours of your time (including travel) to attend the game. The total money price of the ticket, program, and related purchases is $50. The opportunity cost of the time spent attending the game may be greater than the money cost, and the opportunity cost of time will be different for different people. When would your opportunity cost of watching a basketball game be especially high? Who would have a higher opportunity cost of their time: someone with a high income or someone with a low income?

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