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Glossary
What Do You Want More?
An Introduction to Opportunity Cost

Life Questions

Take a moment and consider each of the following pairs.

 
Go to a movie or…
go to a baseball game?
 
Buy a candy bar or…
buy a pack of gum?
 
Loan your brother $100.00 or…
buy a $100.00 pair of jeans?
 
Go to college right out of high school or…
skip college and go right to work after high school?
 

In this section, we're going to learn about something called opportunity cost. By the end of the lesson, you'll see if, based on what you learn about opportunity cost, you've changed your mind or feel even better about the would-you-rather decisions you made above.

After completing this section of the course, you should be able to:

  • recognize the definition of opportunity cost
  • identify the opportunity cost(s) in different situations and
  • consider a recent decision and discuss the opportunity cost of that decision