00:03
So let's say person one and person two are both getting a tax rate cut.
00:09
Person one decides to work more, pay more income tax, and get more money.
00:14
However, person two works less, pays less income tax, and gets less money.
00:19
They both are under the same circumstance, however, one is working a lot more than the other.
00:25
Why is this so? one of the reasons may be opportunity cost.
00:32
Opportunity cost is when the other possible options that are given up when choosing a particular path.
00:41
So to make things simple, in this situation, both of the people have two choices.
00:48
They can either work, so work, or they have another option.
00:56
They could just be free...