1 / 14

Analyzing Choices

Analyzing Choices. 1. You want to visit your friend for a week 2. You work every weekday earning $100 per day 3. You have three flights to choose from: Thursday Night Flight = $275 Friday Early Morning Flight = $300 Friday Night Flight = $325.

stan
Download Presentation

Analyzing Choices

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. Analyzing Choices

  2. 1. You want to visit your friend for a week 2. You work every weekday earning $100 per day 3. You have three flights to choose from: Thursday Night Flight = $275 Friday Early Morning Flight = $300 Friday Night Flight = $325 Given the following assumptions, make a rational choice in your own self-interest (hold everything else constant)… Which flight should you choose? Why?

  3. Trade-offs and Opportunity Cost ALL decisions involve trade-offs. Trade-offs are all the alternatives that we give up whenever we choose one course of action over others. (Examples: going to the movies) The most desirable alternative given up as a result of a decision is known as opportunity cost. What are trade-offs of deciding to go to college? What is the opportunity cost of going to college?

  4. Tradeoffs Think The Price is right with the Showcase Showdown

  5. Opportunity Cost The person has 15 dollars to buy either a CD or T-Shirt. The OC of buying either item, is the item that they are giving up • Opportunity Cost: the value of the next best choice that you give up • The best opportunity given up when a choice is made

  6. Opportunity Cost examples What I chose What I gave up Being a lawyer was my opportunity cost. 1.) The opportunity cost of Mr. Henry becoming a teacher is Mr. Henry becoming a lawyer. Mr. Brady decided decide against watching Zero Dark Thirty and instead watched Django Unchained.

  7. Your turn to practice • Create 3 opportunity Cost scenarios in your notes. • Be sure to create the sentence. “The opportunity cost of ________________ was _____________________.

  8. Econ in the Movies

  9. Paul Solman Video: Opportunity Lost

  10. OC Children’s book • Individually, you will create a digital children’s book that is 6 slides in length with each slide describing an opportunity cost that your character went through. • On each slide, you must provide a sentence that signifies a choice. • The teddy bear could have cleaned his room, but instead he decided to ride a bike. • Then you must explain the opportunity cost. • The teddy bears opportunity cost for riding his bike was cleaning his room. • You must also illustrate each slide appropriately.

  11. Mr. Henry’s story • The teddy bear could have cleaned his room last night, but instead he decided to ride his bike. • The opportunity cost of riding his bike was cleaning his room.

  12. The teddy bear decided to go down the slide, instead of flying kite. The opportunity cost of going down the slide was flying his cost.

  13. The teddy bear could have played nice, but chose to get in a fight The opportunity cost of getting in a fight was playing nice.

  14. Teddy bear could have stayed up and partied, but decided to go to sleep tonight. The opportunity cost of going to sleep was that he could have partied.

More Related