Unit 1 Decision-Making Grid

Name:

Craig Watson

What Should I Do After Graduation?

To satisfy peoples wants and needs we must make decisions. Good decision makers need to know
how to identify the problem and analyze all alternatives in a way that
considers costs and benefits. One approach to decision-making is the decision-making grid.
Recall Figure 1.4, p. 15 what would you do with 50 dollars? In this example, Jesse decided to spend $50.00
on jeans. His opportunity cost was the next best choice soccer ball or cassette player that he gave up.
Directions: Fill in four current possibilities you are considering for after graduation (i.e. 4 different colleges,
military, bum in parents basement, etc). Decide on the weight or importance of each criterion to you
individually and fill in the appropriate row. Rate the criterion for each choice from 1 (poor) 4 (exemplar)
based on how well it meets that criterion. Lastly, multiply each number by the weight of that criterion and
add the total scores for each option.
Example:
Criteria

Affordability

Location

ExtraCurriculars

Overall Appeal
and Long-term
Benefits

Weight
The Ohio State
University

x 5

x 2

x 3

x4

Rating x Weight =

2x2=4

3x3=9

3 x 4 = 12

2 x 5 = 20

Criteria

Affordability

Location

ExtraCurriculars

Overall
Appeal
& Longterm
Benefits

Weight

X4

X4

X1

X3

_JJC_____
___
_UW Eu
Clare_____
___
Saint
Xavier
University_
________
ITT______

Total Score

45
RATINGS

Total
Score

38

33

21

25

4:
3:
2:
1:

exemplary
good
satisfactory
poor

WEIGHT
x4: Greatest
x3: Good
x2: Fair
x1: Poor

___
1. In the end, which option satisfied more of the criteria than any other alternative?
Appeal and long term benefits
2. What was the opportunity cost of your decision?
38
3. What was the highest score? 38

Lowest score?

21

When do you think the opportunity cost is greater? Why?

4. Why is using a decision-making grid an effective way to analyze an economic problem?
Yes because it causes you to see on paper the pros and cons of the decision that is trying to be made. It is a very
useful tool in aiding in a decision-making process.