Opportunity Cost

A Trade-off is

• a purchase in a marketplace.

• an alternative that we sacrifice when we make a decision.

• any good or service a consumer needs.

• a factor of production.

Every decision you make has a cost.

• True

• False

What are the Trade-offs of Juan's decision to go to work?

• Go to work

• Go to a football game

• Go to a friend's house

• Go home and sleep

What is opportunity cost?

• Your first choice

• Your final choice

• How much more money you pay

• The last you would give up to make a choice

What is trade-off?

• Your choice

• What you give up to make a choice

• How much money you pay

• The willingness to give something away

The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their backyard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision?

• vacation

• swimming pool

• backyard

• money

Emelia has been invited to a sleepover at Chloe’s house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe’s house. What is the opportunity cost of her decision?

• seeing her favorite band

• spending time at a friends house

• Chloe's house

• a sleepover

Max is studying for his spelling test. Unfortunately, his favorite TV program is on right now. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision?

• studying for a test

• watching TV show

• spelling test

• nothing

The local government for a community must decide what to do with the sales tax collected. They could build a new skate park or they could buy more computers for the public library. The officials decide to build a skate park. What is the opportunity cost of their decision?

• new skate park

• more computers

• local government

• public library

The opportunity cost of Australian households moving away from coal-powered energy to solar-powered energy includes

• the loss of jobs in the coal industry

• a cleaner environment

• reduced coal production