1 / 10

Do Now : 2 /8/13

Do Now : 2 /8/13. Picture yourself walking into the mall. What two things do you want the most? If you can only pick one, which do you choose and why?. Shopping Mall in Dusseldorf, Germany. Objective: Explain opportunity cost and analyze real world trade-offs.

yonah
Download Presentation

Do Now : 2 /8/13

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Do Now:2/8/13 Picture yourself walking into the mall. What two things do you want the most? If you can only pick one, which do you choose and why? Shopping Mall in Dusseldorf, Germany

  2. Objective: Explain opportunity cost and analyze real world trade-offs. Guiding Question: When you have to choose between two things, what do you miss out on? 1.3: Opportunity Cost

  3. Scarcity [Unlimited wants meet limited resources] Making Choices Opportunity Costs and Trade-offs

  4. Opportunity Cost: Intro We want a lot of things, but we can’t have them all because there are limited resources on Earth. This is called scarcity. Because of scarcity we have to make choices. When you choose one thing, you must give up another. This is known as the opportunity cost of a decision. This shows how we face trade-offs every day.

  5. Opportunity Cost: Definition • Opportunity cost is the second best choice that you give up when you choose something else. If you choose to spend your money on a new watch, the opportunity cost is the pair of sneakers you would have bought

  6. Opportunity Cost: Common Mistakes

  7. Testing Skills: MPQ Practice! Kevin Rose Decides to buy a new watch. What is the opportunity cost of this decision? • The compliments he’ll receive because of the new watch • $150, the price of the new watch • The new shoes he could have bought instead • The gas he had to pay on the way to buy the watch

  8. Trade-Offs: A World Full of Choices • A trade-off is a situation where you can get more of one good, but only by getting less of another • Every time you choose one thing over another, you have an opportunity cost Pepsi Co. has $50 million to spend on advertising. They face a trade-off: should they spend more on TV ads or magazine ads?

  9. Trade-Offs: Personal Directions: When I say go, rank the following items in order of preference on your 1st chart • CD • New Shirt • Magazine • Movie Ticket • Dinner Out

  10. Trade-Offs: National Budget Directions: When I say go, rank the following items in order of preference on your 2nd chart (Feel free to abbreviate!) • Upgrade military technology to help the soldiers in Iraq and Afghanistan • Give money to Urban schools to improve graduation rates • Increase funding for Food Stamps for those in need • Give basic health coverage to millions of uninsured Americans • Subsidize oil companies in order to lower gas prices

More Related