Opportunity Cost and Trade Offs

Our wants are always greater than our resources.

Economics is the study of money and how to get rich.

Economics is the study of people and how they make decisions.

Every decision you make has a cost.

When you make a choice, all the options that you have are called...

What name is given to the most important item you give up when you make a decision?

Opportunity cost can also be called the ____ of your decision.

Juan came up with the following prioritize (in order) list of what he could do Friday after school.

1) Go to work (what he did)

2) Go to a football game

3) Go to a friend's house

4) Go home and sleep

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

Juan came up with the following prioritize (in order) list of what he could do Friday after school.

1) Go to work (what he did)

2) Go to a football game

3) Go to a friend's house

4) Go home and sleep

What is the opportunity cost of Juan's decision to go to work?

Juan came up with the following prioritize (in order) list of what he could do Friday after school.

1) Go to work (what he did)

2) Go to a football game

3) Go to a friend's house

4) Go home and sleep

An economist would say that the economic cost of Juan going to work was...