Learning Intentions

Recognise and identify the resources we have and to

use them in the correct way.

Discuss why we can’t have everything we want to

have in life. (Why we can’t have all our wants).

Distinguish between financial cost and opportunity

cost.
Why can’t we have everything we
want?
*Think on your own
*Share with your partner
Scenario
Financial Cost
The price of the product/service you have
chosen to buy.

For example:
You buy a pair of Nike trousers for €40.00.
The financial cost is €40.00.

You buy an Apple iPhone for €400.

The financial cost is €400.
 11/09/2019
Financial Cost and Opportunity Cost
Opportunity Cost
Opportunity Cost = The P/S you can’t have
(as a result of buying
something else).
Opportunity cost - making a choice as a result of
having a limited income.
Measured in terms of the “next best thing” we
could have done with our money.
E.G. You have €40.00 and you want to buy a
pair of trousers.
Nike = €30.00
Adidas = €40.00
If you decide to buy the Nike trousers, the
Adidas trousers are the opportunity cost as
you can’t have both items.
Making a CHOICE
  Financial Cost Opportunity Cost

Scenario 1
Scenario 2
Scenario 3
Making a CHOICE
Decide what the financial
cost and what the
opportunity cost is in
each of the following
scenarios…
Scenario 1
You are out shopping in the Bridgewater.
You have €50.00.
There is a pair of Nike runners for €44.00 and
a pair of Adidas runners for €46.00. You really
like both. However you must make a choice.
You buy the Nike runners.
Explain this scenario in terms of the financial
cost and the opportunity cost.
Making a CHOICE
  Financial Cost Opportunity Cost

Scenario 1 €44.00 Adidas runners (the item

you cannot buy)
Scenario 2
Scenario 3
Scenario 2
You are going to Dundrum at the
weekend.
You have €60.00.
You are deciding between a Wicklow
jersey (€55.00) and a Wicklow jacket
(€50.00). You do not have enough money
for both. You must make a choice.
You buy the Wicklow jersey.
Explain this scenario in terms of the
financial cost and the opportunity cost.
Making a CHOICE
  Financial Cost Opportunity Cost

Scenario 1 €44.00 Adidas runners (the item

you cannot buy)
Scenario 2
€55.00 Wicklow jacket (the item
Scenario 3 you cannot buy)
Scenario 3
You go to Centra on the way home.
You have €2.00.
You are thirsty. You are deciding between a
bottle of Lucozade and a bottle of Coca-Cola
that both cost €2.00. You do not have enough
money for both. You must make a choice.
You decide to buy the Lucozade.
Explain this scenario in terms of the
financial cost and the opportunity cost.
Making a CHOICE
  Financial Cost Opportunity Cost

Scenario 1 €44.00 Adidas runners (the item

you cannot buy)
Scenario 2
€55.00 Wicklow jacket (the item
Scenario 3 you cannot buy)

€2.00 Bottle of Coca-Cola (the

item you cannot buy)
Homework

Finish reflection task in note copy.

Reflection on the Topic of Resources,
Needs and Wants
Three things I have learned well in this topic are:
1.
2.
3.

Two things I need to work harder on in this topic are:

1.
2.