1. Opportunity Cost vs. Gains

2. Here’s the (pretend) situation…
The school has $200,000 to spend on items for the building. We wanted to buy new lockers for the high school ($27,000), new computers for the middle school ($65,000), new Social Studies text books for grades 9-12 ($30,000) and a new school bus ($90,000). They decided to purchase the lockers, text books and the bus ($147,000) and give the rest of the money to Mrs. Bales for a bonus .

3. What did the school gain by this decision?
A really happy Mrs. Bales! (a more positive happy person does better at his/her job, kids learn more)
New lockers (save time not fixing old ones, saving energy cleaning and painting old ones, students are happy)
New text books (more engaging reading, more student-friendly features, more online applications)
New Bus (safer, more comfortable, reliable)

4. What was the opportunity costs of the decision?
Computers for Middle School (faster start-up and shut down, teachers could count on using technology every day, teachers would make less of paper copies, learning is more engaging, student technology skills advance moreb quickly)