Opportunity cost

What is opportunity cost?

The next-best alternative that is sacrificed when making a decision.

How does opportunity cost relate to decision-making?

It represents the trade-off of not choosing the next-best option.

Provide an example of opportunity cost from a classroom setting.

Choosing a seat in the classroom; the seat not chosen is the opportunity cost.

In 'Spider-Man: Homecoming', what is Peter Parker's opportunity cost?

Skipping school events to fight crime, sacrificing his social life and relationships.

In the movie 'Cars', what does Lightning McQueen give up as opportunity cost?

Fame and immediate racing success for personal growth and relationships.

How do businesses use opportunity cost in decision-making?

They choose which goods and services to produce based on potential profit, sacrificing other options.

What is an example of opportunity cost for a business?

If a business decides to produce laptops, it gives up the opportunity to produce mobile phones.

How do governments utilize opportunity cost in budgeting?

They weigh the benefits of projects, knowing that funding one project means another will miss out.

What factors do governments consider when deciding on tax spending?

They consider what is most beneficial for society, such as infrastructure or social services.

What is the significance of opportunity cost in economics?

It helps individuals, businesses, and governments make informed choices by understanding trade-offs.

What is a common method for brainstorming opportunity cost examples?

Think-Pair-Share activities to discuss real-life scenarios.

Why can't businesses produce everything they want?

Limited resources require them to make choices based on profitability.

What does the term 'trade-off' mean in the context of opportunity cost?

The sacrifice of one option in favor of another when making a decision.

How do farmers use opportunity cost in crop selection?

They evaluate which crops will yield the best return based on available resources.

What role does opportunity cost play in personal decision-making?

It encourages individuals to consider what they are giving up when making choices.

How can understanding opportunity cost benefit students?

It helps them make better decisions in both academic and personal contexts.

What is the relationship between opportunity cost and profit maximization for businesses?

Businesses aim to maximize profit by choosing options with the highest potential returns.

What is a real-world application of opportunity cost for governments?

Deciding between funding a new road or social housing based on community needs.

What is the importance of examples in understanding opportunity cost?

Examples illustrate how opportunity cost manifests in everyday decisions.