Opportunity Cost

What is opportunity cost?

• The cost of going somewhere

• The value of giving up something

What is a good?

• Items you buy

• What someone does for someone else

What is a service?

• Items you buy

• Something you do for someone else

Which of these is a good?

• A video game

• Mowing someone's yard

Which of these is a service?

• A shirt

• Taking someone's dog on a walk

If I choose to buy a shirt instead of popcorn, what is my opportunity cost?

• The shirt

• Popcorn

If I buy my dog a collar instead of ice cream for myself, what is my opportunity cost?

• Ice cream

• Dog collar