op·por·tu·ni·ty costECONOMICS- the loss of potential gain from other alternatives when one alternative is chosen.
- the loss of potential gain from other alternatives when one alternative is chosen.
This is a story about a young boy named Ben. Ben loved playing video games, but he also loved playing baseball. One day, Ben’s friends invited him to play baseball in the park, but Ben was in the middle of playing his favorite video game.
Ben had to make a decision: continue playing his video game or go play baseball with his friends. If he chose to continue playing his video game, the opportunity cost would be missing out on playing baseball with his friends. On the other hand, if he chose to go play baseball, the opportunity cost would be missing out on finishing his video game.
After thinking for a moment, Ben realized that he could always come back to his video game later, but he might miss out on playing baseball with his friends forever. So he decided to put down his controller and head to the park.
When Ben arrived at the park, he had a great time playing baseball with his friends. They laughed, joked around, and Ben even scored a few runs. Ben realized that although he had to give up finishing his video game, the fun and memories he made with his friends was worth it.
From that day forward, Ben learned the importance of considering opportunity cost when making decisions. He knew that he needed to weigh the pros and cons of his choices before making a decision to ensure that he was making the best choice for him at that time.
Teaching Opportunity Cost
Opportunity cost is an important economic concept that can be difficult for children to understand. However, teaching kids about opportunity cost can help them make better decisions and understand the value of money and resources.
One way to teach children about opportunity cost is through the use of examples. If a child wants to buy a toy, you can help them understand that the opportunity cost of buying the toy is not being able to buy something else with the same amount of money. You can also use real-life examples, such as choosing to spend money on a vacation versus saving for a future purchase.
Another way to teach children about opportunity cost is through role-playing. You can give children a small allowance and ask them to make decisions about how to spend it. As they make their decisions, you can help them understand the opportunity cost of each choice.
Teaching children about opportunity cost also helps them understand the value of money and resources. They will learn to think twice before spending money or using resources, and they will be more likely to make wise decisions in the future.
In addition, children will learn that sometimes they have to make trade-offs, and even though they might not always get what they want, they will learn to appreciate the things they do have.
Teaching children about opportunity cost is an important step in helping them become responsible and financially savvy adults. By understanding the concept of opportunity cost, children will be able to make better decisions and understand the value of money and resources. Through the use of examples and role-playing, children can learn about opportunity cost in a fun and interactive way.
