To: Daniel Kim
From: Miranda Tang
Peer Review / Term: Opportunity Cost
Initial Impressions:
Your definitions of the term “Opportunity Cost” are a pleasure to read and review. They are concise, yet very descriptive and full of interesting facts. Below are a few notes about the document that you may find useful in reviewing.
Purpose and Audience:
- The definitions provided are well-suited to an audience with no prior knowledge of the term “opportunity cost”, and thus fit your target audience who are merely interested in this concept and are not necessarily from a finance background.
- The purpose of the definitions, however, is vague and not clearly defined. Please specify at the beginning of the document where you expect your definitions to appear: e.g. whether on Wikipedia or in a first-year finance textbook.
Organization:
- The document is nicely laid out with clear subtitles, and includes all of the required elements: introduction, parenthetical definition, sentence definition, expanded definition, visuals, and works cited.
- A variety of expanding strategies are used (e.g. operating principle, history, example, visual) in the expanded definition to enhance the audience’s understanding of “opportunity cost”. However, a more in-depth description of different types of opportunity costs and the best strategy to make a decision when considering opportunity costs would make your definition even stronger.
- The visual chosen is great, as it provides a vivid illustration of decidophobia frequently encountered when taking opportunity cost into account. Nevertheless, it would be beneficial to reformat your image and add a citation beneath it. The visual would be a more cohesive part of the document (and hence easier to navigate) if you could refer to it in the body of definitions and perhaps provide an example directly related to the picture itself.
Content:
- Your parenthetical definition deviates from the format and lacks parenthesis. Please consult Chapter 17 in the textbook to revise accordingly.
- Some of your ideas can be elaborated further to answer the potential questions your audience might have in mind. For example, your equation stating that “Opportunity Cost = Return On Best Forgone Option – Return on Chosen Option” is clear and concise, but on the other hand, the audience may doubt how to measure the returns quantitatively.
Works Cited List:
- The references are cited correctly using APA.
Grammar and Typos:
- There are no obvious grammatical errors.
- Please note that in the sentence “from a macro perspective, economists suggesting to raise to lower taxes”, an “or” seems to be missing between “raise” and “to”.
Concluding Comments:
Overall, your assignment is well-written and organized. As an audience with no prior knowledge of finance and economics, I learned some interesting information about “opportunity cost”. With a little more work, this could become a valuable study tool for people interested in finance, economics, or accounting. I hope these suggestions are helpful. Please let me know if you would like additional clarification or feedback.
- Clarify the purpose of the definitions;
- Revise the format of the parenthetical definition;
- Elaborate more on the potential questions arising from your expanded definition;
- Cite the visual and connect it with the main body of your definition.
Link to Definition Reviewed:
https://blogs.ubc.ca/engl30199c2022w2/2023/02/09/13-write-three-definitions-daniel-kim-2/
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