Opportunity Cost Opportunity cost – the most desirable alternative given up as the result of a decision Every decision involves trade-offs In economics, we call these trade offs opportunity cost
North Korea as a case study http://www.trust.org/spotlight/North-Korea-hunger
Aircraft production (all types) Source: nationalww2museum.org
Let’s Play NAME THE OPPOURTUNITY COST!
It’s Friday night. You only have time to either go out to dinner and a movie OR go to a haunted corn maze. What is the opportunity cost of going to dinner and a movie?
Mr. Miling gets up at 6 AM. He has to leave for LHS at 6:45. In that 45 minutes he has to • Take a shower – 15 minutes • Shave/brush teeth/get dressed – 15 minutes • Eat breakfast • What is his opportunity cost of sleeping an until 6:15?
Mr. Miling goes to his favorite place in the world to spend his paycheck of $50.00 on food for the week. He can Buy 2 cases of Mountain Dew and 40 Lunchables Buy 500 packets of Ramen noodles What is his opportunity cost of buying 500 packets of Ramen?
Lowell High School gave Mr. Miling a raise and he now has $40,000 to spend on a new vehicle. He can get What’s the opportunity cost of buying the Honda Civic Si coupes? 1 GMC Sierra truck ($40,000 each) 2 Honda Civic Si coupes ($20,000 each) 4 Kia Rio sedans ($10,000 each)
The State of Michigan can hire 400 more State Police officers or 300 DNR park rangers What is the opportunity cost of hiring 900 DNR park rangers?
The United States can build 20 M1 Abrams tanks or 500 cars in a year What is the opportunity cost of making 40 Abrams tanks? Vs.