The Cost of making choices Opportunity Cost The Cost of making choices

Today’s Objective After today’s lesson, students will be able to… Explain what an opportunity cost is and provide examples Essential Skill: State implications and consequences

Thinking Back to Dialysis Who is the last person getting treatment verses the first person? Tradeoff? Where do we see scarcity? What is the opportunity cost?

Opportunity Cost Examples: Loss from 1 hour of studying = 1 hour of time + benefit to my mind/body if I would have worked out Loss from purchasing $45 concert ticket = $45 + pleasure of eating lunch out 5 times (if I had done that instead http://www.investopedia.com/video/play/opportunity-cost/ https://www.youtube.com/watch?v=8QLkhmsvKLo Time/money spent Benefits/advantages of what you would have done

You Don’t Need to Spend a Buck to Have a Cost Read through the worksheet and underline everything you see that you already know about opportunity cost Complete the rest on your own or with a partner

Cost vs. Benefit There is also an opportunity benefit to every tradeoff Mainly the reason why you made the decision in the first place Work through the Opportunity Cost Work Sheet and read the top paragraph to see where the benefits are

Work on the Module 1 Review You can thy the review with or without your notes It would be good practice to complete this tonight

Someone gives up going to see a movie to study for a test in order to get a good grade At the ice cream parlor, you have to choose between rocky road and strawberry A player attends baseball training to be a better player instead of taking a vacation This semester you can only have one elective and you want both basket weaving and choir. You choose basket weaving When the government spends $15 billion on interest for the national debt, what is the opportunity cost? For a farmer choosing to plant corn, what is the opportunity cost? Tony buys a pizza and with that same amount of money he could have bought a Coke and a hot dog