Spending and opportunity cost

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  • 1. Lesson 2: Why does every decision have an opportunity cost?
  • 2. 2. go to the movies with a friend3. play video games at home4. play a sport with your friends5. read a book in a favorite place6. practice an instrument7. watch TV with your family
  • 3. 2. go to the movies with a friend3. play video games at home4. play a sport with your friends5. read a book in a favorite place6. practice an instrument7. watch TV with your family
  • 4. A trade-off is a decision that results in giving up one thing to get something else. Youhad a limited amount of time and several options. You made a trade-off with your time based on your preference about the choices given.
  • 5.  Opportunity cost is the next best alternative a person gives up in making a decision. Opportunity cost is the cost we pay when we give up something to get something else. There can be many alternatives that we give up to get something else.
  • 6.  You make a choice and must give up other options every time you make a decision. You make a trade-off and decide what is more important to do or choose. The second option you choose not to do is the opportunity cost.
  • 7. 1. You and your partner will receive a scenario about a student.2. Based on the information, list the options this person has. Identify the best choice for him/her.3. Decide what opportunity costs the person has when s/he follows one of your options for them.
  • 8. Your pair will present to another pair your scenario and share what the trade-offs and opportunity cost(s) were for your person.