This document provides notes on the concept of opportunity cost from an economics class. It defines opportunity cost as the next best alternative forgone when making a decision. It explains that governments and individuals must consider trade-offs when deciding how to spend resources. Finally, it discusses using a decision-making grid to evaluate alternatives and their costs and benefits, and how thinking at the margin is important when making incremental decisions.

1. Opportunity Cost Section 2 Notes for March 16 th , 2011

6. Benefits Alternatives Decision Opportunity Cost Benefits Forgone

8. Use the rest of the class time to complete page 11, 1-4,6,9. You must answer all questions in complete sentences.