Name date page
Opportunity Cost period
In
the Prom activity we did in class, you looked at your budget and decided what
to cut out of it in order to save $500 for your prom expenses. Reflect on what you decided to give up. The thing you love most that you gave up is
called your opportunity cost. That is the cost of your decision to go to prom. Any time you make a decision, there is an
opportunity cost. When you decide what
you will do after school today, whatever your second choice would have been is
your opportunity cost.
Examples:
·
Joanna has money to buy either a
·
Steve decides to clean the gutters on his house so his Dad will pay him
instead of someone else. However, cleaning gutters means he cannot go out with
his friends. The opportunity cost is hanging out with his friends.
·
In order to build the new bridge, the State of
Assignment: think about what you are going to do Saturday
night.
·
Make
a list of the possible choices. (If you
only have one choice, make up a couple more for the sake of this activity! J )
·
Choose
one thing to do. (Don’t get tricky and
try to do them all!)
·
Write
a paragraph explaining what choices you have, what you will do, and why that is
the best choice for you.
·
Identify
the opportunity cost [remember: the opportunity cost is the value of the next best alternative – it is not all of the things you are giving
up].