1 / 6

LESSON 1.3 Opportunity Cost and Choice

Objectives. LESSON 1.3 Opportunity Cost and Choice. Define opportunity cost. Evaluate guidelines for making choices. Analyze the opportunity cost of attending college. Key Terms. LESSON 1.3 Opportunity Cost and Choice. opportunity cost sunk cost. Opportunity Cost.

trudy
Télécharger la présentation

LESSON 1.3 Opportunity Cost and Choice

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. Objectives LESSON 1.3 Opportunity Cost and Choice Define opportunity cost. Evaluate guidelines for making choices. Analyze the opportunity cost of attending college. CONTEMPORARY ECONOMICS: LESSON 1.3

  2. Key Terms LESSON 1.3 Opportunity Cost and Choice opportunity cost sunk cost CONTEMPORARY ECONOMICS: LESSON 1.3

  3. Opportunity Cost • The opportunity cost of an item or activity is the value of the best alternative you must pass up. CONTEMPORARY ECONOMICS: LESSON 1.3

  4. Opportunity Cost • Nothing better to do? • Estimate opportunity cost • Opportunity cost varies CONTEMPORARY ECONOMICS: LESSON 1.3

  5. Choose Among Alternatives • Calculate opportunity cost • Time—the ultimate limitation • Ignore sunk cost • Sunk cost is a cost you have already incurred and cannot recover. CONTEMPORARY ECONOMICS: LESSON 1.3

  6. The Opportunity Cost of College • Forgone earnings • Direct costs of college • Other college costs • Other-things-constant assumption CONTEMPORARY ECONOMICS: LESSON 1.3

More Related