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Discussion: Production Possibilities and Opportunity Cost

  1. Give an example from one of the choices you made among different alternatives this week. List the alternatives that you weren’t able to do because of your choice. What is your opportunity cost of making this choice? Define opportunity cost using your own words.

 2. Generate an original production possibilities example demonstrating trade-offs and opportunity costs from your own lives. Does your opportunity cost increase as you switch from the task you are specialized into another task? Explain using your own example.

3.  Discuss if there is an opportunity cost for everything that we decide to do? If your answer is YES, does that mean opportunity cost determines our decision making? Do we always choose the option that has the lower opportunity cost? 


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