Comparing Alternatives in Decision-Making (Concert vs. Babysitting)

Decision-Making for a Taxi Driver (Australian Open vs. Work)

Choosing Between a Paid Theatre Concert and a Free Park Concert

Scarcity

Reservation Option

You have a free ticket to a concert tonight which you value at $50. You could, instead, work a shift at your job and earn $70, or you could babysit for a neighbor and earn $40. Assuming these are your only three options and you can only choose one, what is the opportunity cost of attending the concert?

Analyzing a Summer Decision

Evaluate the following statement: A person has three mutually exclusive options for their evening: 1) Go to a concert they value at $50, 2) Work a shift and earn $80, or 3) Read a book they value at $20. If they decide to work the shift, their opportunity cost is $70, representing the sum of the values of the concert ($50) and the book ($20) that they gave up. True or False?

For each economic decision described below, match it with the correct statement of its opportunity cost.

Analyzing the True Cost of a Decision

Explaining Opportunity Cost

A student has three mutually exclusive options for their Saturday afternoon: they can work a 4-hour shift at the campus library for $15 per hour, go to a movie with friends which they value at $40, or take a paid online survey that will earn them a total of $50. If the student chooses to work at the library, the opportunity cost of this decision is $____.

An individual has decided to spend their Saturday afternoon working a part-time job. To correctly identify the opportunity cost of this decision, they must follow a logical process. Arrange the following steps into the correct sequence.

The Baker's Dilemma

Alex is deciding how to spend their Friday night. They can either go to a movie, for which a ticket costs $12 and which they value at $30, or they can work a tutoring session and earn $40. These are Alex's only two options. What is the opportunity cost of choosing to go to the movie?

Economic Profit vs. Accounting Profit

Decision making under scarcity

Shareholder Investment Principle

Economic Cost

Wage as the Opportunity Cost of Free Time

Karim's Work-Leisure Decision in Madrid

Economic Rent