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FOCUS QUESTION FOR THIS SECTION

  • Why does opportunity cost exist in decision making?

Economics

Section 5: Opportunity Cost

SECTION DESCRIPTION
In these lessons students will be able to define and distinguish between a cost and a benefit. In doing so, they will make a series of decisions using cost/benefit analysis and identify the opportunity cost and consequences of decision making.


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LESSON OBJECTIVES

  • Define and identify a cost.

  • Define and identify a benefit.


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LESSON OBJECTIVE

  • Communicate the opportunity cost when given a scenario that has costs and benefits.

  • Explain the consequences (positive or negative) of making a decision.


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LESSON OBJECTIVES

  • Identify the opportunity cost in a given scenario and explain why the opportunity cost exists.


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 LESSON OBJECTIVES

  • Evaluate different alternatives and make choices based on their personal evaluation.


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LESSON OBJECTIVES

  • Research values of opportunities and determine trade-offs between alternatives when making a decision.