Welcome!��Start a new paper titled: �Economic Decision Making��Answer this: What is one decision you made today? How did you decide what to do?��
2. Apply the Economic Decision-Making Model (EDM) to guide your choices.
5. Identify the opportunity cost in a given decision.
Intro
to
Economic
Decision
Mak
ing
List all the decisions you’ve made today.�(hint: start with waking up)
ANALYSIS
Basic Decision Making
Little mermaid clip here.
Benefits
(Advantages)
Costs
(Disadvantages)
Economic Decision Making�(EDM)
The Economic �Decision-Making �Model
Goal
What do you want to accomplish?
Alternative 1
One option for accomplishing your goal.
Alternative 2
Another option for accomplishing your goal.
Choice
Your chosen alternative
Disadvantages
AKA costs
Advantages
AKA benefits
Disadvantages
AKA costs
Advantages
AKA benefits
Opportunity Cost
The alternative you didn’t choose
The Cat only grinned when it saw Alice. It looked good-natured, she thought: still it had VERY long claws and a great many teeth, so she felt that it ought to be treated with respect.
'Cheshire Puss,' she began, rather timidly, as she did not at all know whether it would like the name: however, it only grinned a little wider.
'Come, it's pleased so far,' thought Alice, and she went on. 'Would you tell me, please, which way I ought to go from here?'
'That depends a good deal on where you want to get to,' said the Cat.
'I don't much care where--' said Alice.
'Then it doesn't matter which way you go,' said the Cat.
'--so long as I get SOMEWHERE,' Alice added.
'Oh, you're sure to do that,' said the Cat, 'if you only walk long
enough.'
The Cat only grinned when it saw Alice. It looked good-natured, she thought: still it had VERY long claws and a great many teeth, so she felt that it ought to be treated with respect.
'Cheshire Puss,' she began, rather timidly, as she did not at all know whether it would like the name: however, it only grinned a little wider.
'Come, it's pleased so far,' thought Alice, and she went on. 'Would you tell me, please, which way I ought to go from here?'
'That depends a good deal on where you want to get to,' said the Cat.
'I don't much care where--' said Alice.
'Then it doesn't matter which way you go,' said the Cat.
'--so long as I get SOMEWHERE,' Alice added.
'Oh, you're sure to do that,' said the Cat, 'if you only walk long
enough.'
Answer the following in complete sentences.
The Economic �Decision-Making �Model
Goal: Purchase a new video game system
Alternative 1 Xbox Series S
Alternative 2: PlayStation 5
Xbox Series S (duh)
Not the most powerful, can’t play Ratchet and Clank
Benefits
Own many games, GamePass, good controller, HALO, Bethesda games
Costs
Controller made for tiny hands, slow downloads, expensive games, no Elder Scrolls 6
Benefits: Play exclusives like Ratchet and Clank, Horizon, kids will think I’m cool
PlayStation 5
Never Have I ever clip here.
GOAL: Pick the best boyfriend
ALTERNATIVES
Choice:
Opp Cost:
?
?
?
?
?
?
?
?
The Economic �Decision-Making �Model
GOAL: Do as much good as possible
Alternative 1: Rachel
Alternative 2: Harvey
Choice:
Harvey
COSTS
Engaged to another dude, not particularly useful to the city
BENEFITS
Known since childhood, have a crush on her
COSTS: Could become a super villain if he loses Rachel, not marriage material
BENEFITS: Helps me fight crime, important figure in the city, good dude
Opp Cost:
Rachel
The Economic �Decision-Making �Model
GOAL:
The Economic �Decision-Making �Model
GOAL:
Help the little guy
Alternative 1
Stay in school
Alternative 2
Go to Germany with Tony
CHOICE:
Go with Tony
Costs
Can’t save people
Disappoint Tony
Benefits
Get his education
Make Aunt happy
Costs
Can’t do homework
Dangerous
Benefits
Travel
Become an Avenger
Opportunity Cost
Stay in school
The Economic �Decision-Making �Model
GOAL:
Create an EDM to help you decide what to do after high school.
The Economic �Decision-Making �Model
GOAL: Go to a college to be a teacher
Costs:
Not as prestigious, longer commute
Benefits:
Lower cost, known for teaching, best friend going there
Benefits: Great education, close to home
Costs: don’t know anyone, expensive
Choice:
CSUSB
Opportunity cost:
UCR
Alternative 1
CSUSB
Alternative 2
UCR
Think of a choice you need to make or will need to make soon. Complete the Economic Decision-making model for this choice.
The Economic �Decision-Making �Model
Goal/Decision
What do you want to accomplish?
Alternative 1
One option for accomplishing your goal.
Alternative 2
Another option for accomplishing your goal.
Choice
Your chosen alternative
Disadvantages
AKA costs
Advantages
AKA benefits
Disadvantages
AKA costs
Advantages
AKA benefits
Opportunity Cost
The alternative you didn’t choose
Reflection Qs