Good afternoon, you're
in Econopolis! We're going to learn about opportunity cost
today. Opportunity cost is the process of choosing
one good or service over another. The item that you don't pick is
the opportunity cost. Even though you might not realize it,
you use opportunity cost every single day. Here is an example:
I went to Clothes Express and saw a really cool shirt, then I went to Pants
Plaza and saw some cool pants. The shirt was 10.00 dollars and the pants
were 15.00 dollars. In all that is 25.00 dollars. I only have 20.00 dollars.
If I pick the shirt, then the pants are my opportunity cost.
can also be a choice about what you do during the day. A good example is:
My friends and I have one day off to do anything we want. We've decided
to either go to the movies or shopping. We decided to go to the movies
instead of going shopping. The opportunity cost was going
Now we're going to play a game to
see what you have learned.
You have just won $150.00!!!!!! Pick out
your prizes out of the list below. But remember you can't go over $150.00.
Here is the list of prizes.
Big Screen TV-$120.00
Batting Cage Pass for
Round Trip Cruise to
the Caribbean Islands-$150.00
Heavy Winter Coat-$90.00
Now that you have chosen your prizes, get out a calculator, and add
up all the prizes you didn't choose. What is your opportunity cost?
( If you came up with $300 as your opportunity cost you are a winner!!!!!)
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