Economic Decision Making: Opportunity Cost Understand and explain opportunity cost Analyze real-world opportunity costs.

Slides:

Advertisements

Similar presentations

Objective: –Explain what economics is and how we make economic choices. Bell Question: –What is a need? What is a want? What is the big difference between.

Advertisements

Task: How do you budget your time in a typical weekday? Use today for example, and write down how you divided the time you had during the day? Would you.

Economics Introducing Key Vocabulary. Do Now: Want vs Need Draw a picture of a want. Write definition underneath. Draw a picture of a need. Write definition.

Unit 1: What is Economics? Learning Objectives: Describe the nature of human wants and how they are satisfied. Identify and define the four factors of.

Opportunity Costs All economic questions and problems arise from scarcity. Economics assumes people do not have the resources do satisfy all of their wants.

Bell Ringer What did you give up in order to come to school this morning? In other words, what else could you be doing with your time?

Thank you for coming to class today, what were some other things that you could have been doing instead of coming in? Quick Write.

Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE1 Economic Choices Goals Understand the basic economic problem. Explain the steps in.

Economic Choices and Decision Making

Financial Literacy Camp. Money and Choices “Thinking Economically”

Game Theory The Prisoner’s Dilemma Game. “Strategic thinking is the art of outdoing an adversary, knowing that the adversary is trying to do the same.

Intro to Economics The Concepts. Economics The study of how we make decisions in a world where resources are limited (the science of decision making)

Economics 1. What is economics? It is the study of how people make decisions in a world where resources are limited: the science of decision making.

Standard SSEF1 a. Define scarcity as a basic condition.

Basic Economic Concepts Chapters 1-2. What is Economics in General? Economics is the study of _________. Economics is the science of scarcity. Scarcity.

Standard SSEF1 a. Define scarcity as a basic condition.

Living in a World of Scarcity

1 - 1 The Economic Perspective Marginal Analysis Trade Offs & Opportunity Costs Types of Economics Economic Goals Introduction to Economics.

WHAT IS ECONOMICS? 1 C H A P T E R ECONOMICS The social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction.

Warm Up 1.Write the name of your favorite cereal on the front board : 2.On a piece of paper, answer a)Why is that cereal your favorite b)What is its advertisement.

COST-BENEFIT ANALYSIS ucator.

Basic Financial and Economic Concepts. Wants and Needs Wants – Things that you do not have to have to survive, but would like to have. – Examples: bike,

Warm Up9/7/11 You were “fed” last week at the senior retreat. Was it a “free” lunch? Explain your answer.

Write down 5 things you think are scarce in Louisiana.

Warm up questions – 1/28/2014 What are some economic decisions you made in the last 24 hours? (ie. time, money) What were some alternatives that you were.

Thinking at the Margin! Does it have to be all or nothing?

DO NOW 1. Which factor of production could be called the “brains behind the economy”? 2. Give an example of a capital good: 3. Give an example of a non-renewable.

Chapter 1 Section 3 Opportunity Costs. Objectives Understand why sacrifice is an important element of economic choice. Identify the assumptions involved.

Economic Essentials #1 What is economics?. Economics The study of the choices people make to satisfy wants and needs.

The Decision Making Process

A plan for how to spend your money What is a budget?

1 Chapter Introduction 4 Chapter Objectives Section 3: Economic Choices and Decision Making Click the mouse button or press the Space Bar to display the.

ECON Opportunity Cost Objectives: 1.Why is sacrifice an important element in economic choice 2.What assumptions are involved in creating a production.

1.Analyze trade- offs & opportunity costs. 2.Explain the reasons for studying economics.

FUNDAMENTALS OF ECONOMICS. (TOPIC 1)LEARNING OBJECTIVES Explain why scarcity & choice are the basis of economics in every society Describe the 3 economic.

A Review of the Basics. 1. Natural Resources ◦ From Earth ◦ AKA Raw Materials 2. Labor ◦ The human effort ◦ Mental and physical efforts 3. Capital ◦ Equipment.

AP Economics “Econ, Econ” Econ 1. Review with your neighbor… 1.Define scarcity 2.Define Economics 3.Identify the relationship between scarcity and choices.

WHEN IT COMES TO MONEY, WHY DO WE DO WHAT WE DO? By Julie Chapman for.

Opportunity Costs. Things to doCan I afford this? Will this be OK with my parental units? Will this benefit me for the long term?

FrontPage: Would you rather have less time or less money? Last Word: Section Review Chapter 1 due Fri.; Quiz Mon.

Canadian Economy 2203 Unit 1. What do you need to know? Define economics. Define economics. Describe what economists do and career options Describe what.

WHY ARE ADULTS PAID BIG BUCKS TO PLAY GAMES?. Guide to Economic thinking 1. People choose. 2. People’s choices involve costs. 3. People respond to incentives.

Balancing the Federal Budget When, if ever, should the nation prioritize balancing the federal budget?

UNIT 1: COMMUNITY & ECONOMY LESSON 5: What is philanthropy?

Trade Off Trade-Off A trade-off is an exchange of one thing for another, or accepting less of one thing for more of another. For example, if you have the.

Welcome to Economics. Objectives 7.01 Describe the basic factors of production such as land, capital and entrepreneurial skills and their impact on economic.

Chapter 18 Notes What is Economics?. Bellwork Chapter 18  Define key terms on page 406.

AP Economics “Econ, Econ” Econ 1. Review with your neighbor… 1.Define scarcity 2.Define Economics 3.Identify the relationship between scarcity and choices.

Basic Economic Questions

Economic Choices and Decision Making

AP Economics “Econ, Econ” Econ.

How do you make decisions? What is a decision you made recently?

Production Possibilities

AP Economics “Econ, Econ” Econ.

Economic Decisions and Systems

Agribusiness Library LESSON Choice.

AP Economics “Econ, Econ” Econ.

Economic Choices and Decision Making

Econ “Economic Choice Today: Opportunity Cost”

ECONOMICS: August 31 Warm-up #1 (SLO)

Standard SSEF1 d. Define opportunity cost as the next best alternative.

Economic Choices and Decision Making

And Effective Decision Making

AP Economics “Econ, Econ” Econ.

Opportunity Cost and Marginal Analysis

Thing / Person:____________________ Dates:_________________

ECONOMICS: January 15 Warm-up See Ch. 1, Lesson 2 (HO) and record answers on dated warm-up sheet (first three boxes) --conclude Ch. 1, Lesson 1, Day.

Overview of Economic Content

ECONOMICS: August 26 Warm-up Name the four resources necessary to make products in an economy Learning Target In order to understand the interaction.

Presentation transcript:

Economic Decision Making: Opportunity Cost Understand and explain opportunity cost Analyze real-world opportunity costs

Opportunity Cost Cost of the next best alternative use of money, time, or resources when making a choice Not just a dollars and cents issue… Think in terms of trade-offs/alternatives— every other decision you could have made instead –Studying for economics in class has its opportunity cost…

Act… With a partner, create a scenario where you needed to make an economic decision –Work or play –School or stay home –Friday night –Prom date Explain the decision, list the alternatives, explain your decision, explain opportunity cost Be prepared to share!