Standard 1 Demonstrate knowledge of a systematic approach to a decision-making process (specifically opportunity costs and tradeoffs)…….. The student will: Demonstrate knowledge of opportunity costs. Demonstrate knowledge of trade offs Demonstrate knowledge of a systematic approach to decision making.

Bellringer 9/22 What did you do this weekend? What other options did you have? Be prepared to share with the class.

Essential Questions: How can you determine the opportunity costs of a decision? How can you determine the trade-offs of a decision? What is the best way to solve a problem that doesn’t have an obvious answer?

An unwillingness to give up something now in return for something later.

Instant Short period of time A particular moment Produced rapidly with little preparation Immediate To act or produce quickly

Gratification Being gratified Satisfaction Source of pleasure reward

A willingness to give up something now in return for something later.

Delayed Put off until a later time To postpone To defer A period or amount of time when something is delayed

The value of the benefits of the next best alternative that could have been chosen, but was not.

Everything you give up when you choose one alternative over another.

Options after high school graduation ChoiceBenefitsTrade-OffsOpportunity Cost

Decision Making Process There are many versions of a decision making process. One version is the following: Define the problem Brainstorm possible alternatives Develop alternatives Evaluate alternatives Propose and defend a solution

Assignment – Groups of 3 Top of paper list every person in your group For each scenario, you must write The question Define the problem. (What is the question in this scenario) List possible alternatives ( what can we do to fix this problem) Solution to the problem (which alternative did you select- what is the best answer to the question?) Defend the Solution (Why do you think this is the best solution)

Essential Question 1 How can you determine the opportunity cost of a decision? Look at all the alternatives or options available. Choose the best two alternatives. Make a decision on your best choice. The 2 nd best choice (which you did not choose) is the opportunity cost because its what you gave up for the best choice.

Essential Question 2 How can you determine the trade-offs of a decision? Look at all the alternatives or options available. Choose the best two alternatives. Everything else that you could have chosen but did not are the trade-offs- what you gave up for the choices you made.

Essential Question 3 What is the best way to solve a problem that doesn’t have an obvious answer? By following the steps of the Decision Making Process. Define the problem Brainstorm possible alternatives Develop alternatives Evaluate alternatives Propose and defend a solution