2. From Choices to Opportunity Costs  opportunity costs – the most valued alternative you give up to do something  what you would have chosen instead

4.  Would you rather have the Phantom OR  Would you rather have…….  A housein Vista $300,000  Honda Accord MSRP of $25,000  Gas allowance of $3,000  Monthly allowance for shopping of $1,000 for 1 year OR  Would you rather have…….  A $340,000 trip around the world for a year

5.  The cost of passing up the next best choice when making a decision.  opportunity cost. InvestorWords.com. Retrieved July 21, 2008, from InvestorWords.com website: http://www.investorwords.com/3470/opportunity_cost.html http://www.investorwords.com/3470/opportunity_cost.html  Every choice we make has an opportunity cost.  The most valued opportunity or alternative you give up for your 1 st choice is the opportunity cost.

6.  1 phantom  2house in Vista, Honda, shopping, gas  3 trip around the world  Opportunity cost is all about choices.  When you forgo doing homework to get on Facebook, your opportunity cost for getting on Facebook was your homework.  Your choice. Your opportunity cost.

7.  Decision  Eat at Jack-In-The-Box  Opportunity Cost  Eat at Mc Donald’s  High Opportunity Cost ▪ MacDonald’s reduces prices ▪ More choices added at Mickey D’s ▪ Certified Cleanest Fast Food Restaurant in SD County I’m hungry. What should I do?

8.  Decision  Eat at Jack-In-The-Box  Opportunity Cost  Eat at McDonald’s  Low Opportunity Cost ▪ McDonald’s raises prices ▪ Only serves strawberry shakes ▪ E. Coli outbreak I’m hungry. What should I do?

9.  Because there is scarcity, there must be some way of deciding “who gets what” Rationing Device  Because there is scarcity, there is competition

20. 1. At the end of your class notes, answer questions 4-6 Section Review p. 13 2. Read p. 12 “Would People Go To College If Scarcity Did Not Exist?” and write an answer to the question on that page. 3. Create a comic strip showing the relationship of scarcity, choice and opportunity cost

21.  Using the Diagrams and flow charts in Ch. 1 (pg 10), create a comic strip displaying the following underlined concepts studied in class:  Wants  Resources displaying  Scarcity which creates  choices which leaves an  opportunity cost  Each Term will have a frame in the comic.  Choose a topic from your life  Demonstrate your understanding of the flow/connections  Use Voice Bubbles for each frame  Be creative!  Stick people rule!  Must all be original work.  Highlight the terms in your VoiceBubbles

23.  The science that studies the choices of people trying to satisfy their wants and needs in a world of scarcity…