1.3 Opportunity Cost, Trade-Offs, and Factors of Production

Multiple Select

Which of the following are characteristics of cost as described in the slides?

• All costs are costs to the decision-maker.

• Costs are objective and the same for everyone.

• Only actions have costs, not things.

• All costs are in the future.

Multiple Choice

Which of the following is an example of an implicit cost?

• Paying for electricity

• Paying wages to employees

• Salary given up to attend a family event

• Buying groceries

Open Ended

Given the scenario about choosing a flight, what factors should you consider to make a rational choice in your own self-interest?

Multiple Choice

What is the main difference between a trade-off and an opportunity cost?

• A trade-off is all alternatives given up, while opportunity cost is the most desirable alternative given up.

• A trade-off is the most desirable alternative given up, while opportunity cost is all alternatives given up.

• Trade-off and opportunity cost mean the same thing.

• Opportunity cost is only about money, while trade-off is about time.

Open Ended

Describe a real-life situation where you had to make a choice and identify both the trade-offs and the opportunity cost involved.

Open Ended

After learning about opportunity cost and trade-offs, what is one question you still have or something you would like to know more about?

Open Ended

Can you provide a real-world example of opportunity cost that you encountered in your daily life?