Title: Opportunity Costs and Tradeoffs

Write down the

Essential Question.
Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



In the subsequent scenarios determine
what you and your AB partner will do to
help solve your issue.
Write how you will solve your problem.

1. You are an owner of a professional
football team.
You have the best quarterback in the NFL, but
you also have two others that are very good
that are backup.
You need a kicker badly
Other teams have kickers that are very good.
What do you do?


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Scenario #2
Again, determine what you and your AB partner will
do to help solve this issue.
Write how you will solve your problem.

2. You are the owner of a company (company
X).
Your company makes a nice profit making desktop
computer components for a leading computer
company. However, you have an opportunity to
supply another company with computer
components that is making impressive gains in the
computer tablet industry. Although a risk, and
understanding that you have limited resources,
working with this new company could possibly move
your profits through the roof.
What do you do?


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



We looked at the previous two scenarios to
help us introduce a topic that is crucial to
understanding economics: the trade off.

0 5: Tradeoff


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?





Tradeoff: An exchange of one thing in return
for another.
especially when you give up one
benefit/advantage for something that is
regarded as more desirable.


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Think/Pair/Share (Bs go first)
What is the possible tradeoff in the first scenario?

1. You are an owner of a professional
football team
You have the best quarterback in the NFL,
but you also have two others that are very
good that are backup.
You need a kicker badly
Other teams have kickers that are very
good.


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Think/Pair/Share (As go first)
What is the possible tradeoff in the second scenario?

2. You are the owner of a company (company
X).
Your company makes a nice profit making desktop
computer components for a leading computer
company. However, you have an opportunity to
supply another company with computer
components that is making impressive gains in the
computer tablet industry. Although a risk, and
understanding that you have limited resources,
working with this new company could possibly
move your profits through the roof.


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Think/Write/Share
What does it mean that there is no such
thing as a free lunch? (Bs start)

Some economists like to say that there is no
such thing as a free lunch." What that means is
that in a world of scarcity, everything has an
opportunity cost. There is always a trade-off
involved in any decision you make.

Opportunity Costs:
The value of what you must give up when
you make a choice.
the value of the next best opportunity.



Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Think/Pair/Share
What is the opportunity cost in the above
cartoon? (For the man)

Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Opportunity cost is useful when evaluating
the cost and benefit of choices.

Think/Write/Share

What are some possible opportunity
costs for the following.
Being in school and in this class.
Going to a theater on a school night.
Buying a $100 pair of shoes.
Helping a friend mow his lawn.
Buying a car.



Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?



Soviet Union and China Rapidly
Industrialize.

What problems do you think exist when a
country tries to rapidly industrialize?


Objective (3.1.b)
SWBAT analyze the
relationship between
tradeoffs and
opportunity costs and
describe how they
relate to economic
decision making.

DOL (how?) Given a
scenario, 100% of
students will: 1)
Answer 3 MC
questions; 2) create a
solution to an
economic problem
and describe the
tradeoffs and
opportunity costs
involved.

EQ: What is the
difference between a
tradeoff and
opportunity cost and
how do they impact
our lives?