1.2: Opportunity Cost

Chapter 1.2: Opportunity Cost

• Vocabulary:
• Trade Off
• Opportunity Cost
• Cost/Benefit Analysis
• Marginal Cost
• Marginal Benefit
• Economics & You (p.9): Describe one decision you made this week.  Identify the trade-offs involved.
• Checkpoint (p.11): Why does every choice involve an opportunity cost?
• Decision Making at the Margin (p.12): #1 & 2
• Checkpoint (p.12): How can a cost/benefit analysis help people make decisions?
• Section 2 Assessment (p.12): #7, 8, 9