Opportunity Cost

1. Opportunity Cost When you chose, what did you give up?

2. Opportunity Cost The best alternative not selected when making a decision

3. Opportunity Cost • To choose is to refuse. • Opportunity cost is opportunity lost. • Every choice has a cost. • Every choice has only one cost. • There is no such choice as a free choice.

4. A Decision

5. The Resource

6. The Alternatives

7. The Choice

8. The Opportunity Cost

9. While reading, Identify important decisions made by Uncle Jed.

10. Pay for operation Travel around to cut hair Decided to cut for no money Put money in bank Not to give up Started to save again Started again (second time) Pursuing goals despite segrigation To buy barber shop Decisions made by Uncle Jed

11. Uncle Jed’s Alternatives

12. Which alternative did Uncle Jed select? Carefully Considered?

13. What opportunity did Uncle Jed give up? What was his opportunity cost?

14. Opportunity Cost • To choose is to refuse. • Opportunity cost is opportunity lost. • Every choice has a cost. • Every choice has only one cost. • There is no such choice as a free choice.

15. Identify Francisco’s & Abuelo's Choices

16. Abuelo's choices • Not to accept pay until work completed • Come to U.S. • Take grandson to interpret • To go to work • Find a job • To right the wrong • To not yell at grandson • To work on Sunday

17. Abuelo's choices (Summary) • Come to U.S. to help his daughter • Look for work • To right the wrong • Come back Sunday to undo the damage.

18. The opportunity cost of each choice. • Come to U.S. to help his daughter • Look for work • To right the wrong • Come back Sunday to undo the damage.

19. Francisco’s choices • Take the gardening job • Embellish on grandfathers experience • Work with grandfather to translate • To offer two for one • To be aggressive and assertive • To lie • To work on Sunday with grandfather

20. Francisco’s choices (Summary) • Going to look for work with Abuelo • To be aggressive and assertive • Tell Ben that Abuelo was a gardener • Come back Sunday to undo the damage.

21. The opportunity cost of each choice. • Going to look for work with Abuelo • To be aggressive and assertive • Tell Ben that Abuelo was a gardener • Come back Sunday to undo the damage. What was the “price” of the lie?? End

22. The Four Letter “F” Word FREE

23. Look for the word “FREE”

24. The Four Letter Word!

25. Draw Two Picturesof any two characters in books of this lesson.Uncle Jed’s Barber Shop A Day’s Work Big Squeak, Little Squeak(On two sides of one piece of paper)

27. Questions to be asked for 1st three Choice Cards • What are your two best alternatives? • What are the advantages and disadvantages of each? • Disadvantage should not be not getting the other alternative • What do you choose? • What is the opportunity cost of your choice?

28. 1. Grandpa sent you birthday money. You have a lot of things that you could do with it. • Your mother wants you to put the money in the bank for your college fund. • Your best friend wants you to go halves on a computer program that you can both use. • Your brother said you should spend the money when the family goes on vacation. • You were thinking of treating yourself to a great meal at a fast food place.

29. Your mother wants you to put the money in the bank for your college fund. Your best friend wants you to go halves on a computer program that you can both use. Your brother said you should spend the money when the family goes on vacation. You were thinking of treating yourself to a great meal at a fast food place. What are your two best alternatives? What are the advantages and disadvantages of each? What do you choose? What is the opportunity cost of your choice? 1. Grandpa sent you birthday money. You have a lot of things that you could do with it.

30. 2. At recess you have many things that you could do. • A friend wants you to play kickball with him. • Another friend wants you to play tetherball. • Your teacher said he would help you with a class assignment that you missed. • You were thinking about playing a video game.

31. A friend wants you to play kickball with him. Another friend wants you to play tetherball. Your teacher said he would help you with a class assignment that you missed. You were thinking about playing a video game. What are your two best alternatives? What are the advantages and disadvantages of each? What do you choose? What is the opportunity cost of your choice? 2. At recess you have many things that you could do.

32. 3. After school you could • do your homework, • play with friends, • watch TV, • play a computer game, • sleep.

33. do your homework, play with friends, watch TV, play a computer game, sleep. What are your two best alternatives? What are the advantages and disadvantages of each? What do you choose? What is the opportunity cost of your choice? 3. After school you could

34. You can get the shoes, but if you do, you won’t be able to buy the shirt, hat, and pants that you really should have for school. 4. Your mom is buying your school clothes. You see a great pair of shoes that cost a lot of money.

35. shoes, shirt, hat, and pants that you really should have for school. What are the “benefits” and “costs” of the: shoes shirt, hat, and pants? What do you choose? What is the opportunity cost of your choice? 4. Your mom is buying your school clothes. You see a great pair of shoes that cost a lot of money.

36. Your Decisions • Birthday money • Recess • After school • School clothes END

37. Your mother wants you to put the money in the bank for your college fund. Your best friend wants you to go halves on a computer program that you can both use. Your brother said you should spend the money when the family goes on vacation. You were thinking of treating yourself to a great meal at a fast food place. What are your two best alternatives? What are the advantages and disadvantages of these two alternatives? What do you choose? What is the opportunity cost of your choice? 1. Grandpa sent you birthday money. You have a lot of things that you could do with it.

38. A friend wants you to play kickball with him. Another friend wants you to play tetherball. Your teacher said he would help you with a class assignment that you missed. You were thinking about playing a video game. What are your two best alternatives? What are the advantages and disadvantages of these two alternatives? What do you choose? What is the opportunity cost of your choice? 2. At recess you have many things that you could do.

39. do your homework, play with friends, watch TV, play a computer game, sleep. What are your two best alternatives? What are the advantages and disadvantages of these two alternatives? What do you choose? What is the opportunity cost of your choice? 3. After school you could

40. shoes, but if you buy them you can’t buy the shirt, hat, and pants that you really should have for school. What are the “benefits” and “costs” of the: shoes shirt, hat, and pants? What do you choose? What is the opportunity cost of your choice? 4. Your mom is buying your school clothes. You see a great pair of shoes that cost a lot of money.