Personal Finance Review

Makayla is trick or treating and sees both Skittles and Sour Patch Kids in the bowl! She can only choose one. She chooses Sour Patch Kids. What is the opportunity cost?  

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Travis wants to play outside with his friends, but he also wants to play the new Pokemon game. Since he can’t do both, he chooses to play with his friends. What is the opportunity cost?  

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Alberto’s friends joined the baseball team. Alberto joined the soccer team by himself. What is the opportunity cost?  

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Grace’s teacher assigns the class a project to work on in groups. Grace wants to talk to her friend about what she did this weekend. Her teacher warns her if she does not stay on task, she will have to work by herself, but Grace keeps talking. What is the opportunity cost?

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What is an opportunity cost? 

• 1. The cost of a good or service

• 1. The amount of money you pay to do something

• 1. The thing you give up when you choose something else. 

What is the opportunity cost? 

Raul chose pizza at lunch instead of PB&J.

• 1. Both meals

• The PB&J

• The pizza

Why can't we have everything we want?

• Scarcity

• Choices never have costs

• You can have everything you want

Why do you have to think before making a choice?

• Each choice has a cost.

• Choices never have costs.

• Choices take a lot of time

What is allocation? 

• 1. The thing you give up 

• 1. Taking something from someone

• 1. How you give something out

Which is an example of PRICE allocation? 

• 1. Jeremy buys an orange for $1.25 

• 1. Jeremy splits an orange in half for his two kids. 

• 1. Jeremy wins a race and gets an orange as a prize.