What is my Opportunity Cost?

Any time you buy something, whether you

realize it or not, there is an opportunity cost.
When you choose something at a store, you
also choose not to buy something else – this
is your opportunity cost. Businesses also
have opportunity costs. When a business
chooses to make one product instead of another, the product they choose not
to make is their opportunity cost. Knowing this, see if you can answer all of
these questions correctly!
1) When you go to the store with $1.00 and choose to buy a chocolate bar,
what could be an opportunity cost for you? (What is something else you
could’ve chosen to buy, but didn’t?)
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2) When a business decides to make teddy bears instead of wooden toys,
what is their opportunity cost?
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3) When you go to the store to pick out new school supplies, your mom tells
you that you have to choose between a new binder and a new lunch box.
Which would you choose, and which would be your opportunity cost?
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4) You are starting your own business and have to choose between producing
shoes and producing shirts. Which do you choose, and which would be your
opportunity cost?
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