Opportunity Cost Assignment Name:___________

Outcome 3.1.1, 3.1.12

1. In your own words explain opportunity cost. Create your own example to
support your explanation.

2. Does money have to be involved when you talk about opportunity cost?
Why or why not?

3. For each of the examples explain the opportunity costs for each decision:

A. You want a car but in order to have one you must work a part-time job
Saturdays and Sundays to pay for the vehicle. What are your opportunity
costs for:
1. getting the car
2. taking the bus

B. You decide to go to a house party instead of babysitting Friday night. What

are your opportunity costs?

C. Fresh out of high school you take a year off school and work a minimum
wage job. What are your opportunity costs?

D. Furthering your education as opposed to moving into your own apartment.

4. What impact does money have on the decisions you make? Think of 3
important decisions you will make that money is not the most important factor.

Score 4 3 2 1
3.1.12- identify a You have shown an You have shown some You have attempted You have failed
in-depth understanding of to demonstrate your to complete the
student’s understanding of opportunity costs, your understanding of assignment
opportunity costs opportunity costs, reasoning somewhat opportunity cost,
that are your reasoning reflects your however your
associated with clearly reflects your understanding of the reasoning does not
knowledge of the importance of opportunity support the concept
earning real importance of costs
income or trying opportunity costs
to increase it

3.1.1- define You have shown an You have defined You have attempted You have failed
in-dept understanding opportunity cost and your to define opportunity to define
opportunity cost of opportunity cost, example supports your cost however your opportunity cost
reflected in your clear definition definition is inaccurate
and concise definition
as well as your
supports provided