Unit 1 Decision-Making Grid Name:

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:
Overall Appeal
Extra-Curricular
Criteria Affordability Location and Long-term Total Score
s
Benefits
Weight x 5 x 2 x 3 x 4
The Ohio State Rating x Weight =
University 2 x 5 = 20 2 x 2 = 4 3 x 3 = 9 3 x 4 = 12 45

Overall
Appeal
Extra-Curri & Total
Criteria Affordability Location
culars Long-ter Score
m
Benefits
Weight x4 x2 x1 x4 RATINGS

4x3 2x2 1x4 4x4 32 4: exemplary

__Harvard 3: good
2: satisfactory
__ 1: poor

4x3 2x2 1x1 4x4 33

____Yale_ WEIGHT
_ x4: Greatest
x3: Good
x2: Fair
4x2 2x2 1x2 4x4 30 x1: Poor
___Stanfor
d_

4x4 2x2 1x3 4x4 39

__Princeto
n__
1. In the end, which option satisfied more of the criteria than any other alternative?
The overall appearance because a college has to look good to be good

2. What was the opportunity cost of your decision?

18,068 Dollars a year.

3. What was the highest score? 39 Lowest score? 30

When do you think the opportunity cost is greater? Why? Because it is a major college to get in.

4. Why is using a decision-making grid an effective way to analyze an economic problem?

To analyze all options and comparing all colleges in mind, then add them up to find the best
one.