1. Choice & Cost

2. Trade-Off: Any situation in which one thing must be decreased for another to be increased. Ex: "I faced a trade-off between eating and buying my medicine." Decisions involve TRADE-OFFS.

3. The highest valued alternative you give up is your... Opportunity Cost WHAT YOU LOSE WHEN YOU CHOOSE!!! (Also known as REAL COST: it’s not necessarily a monetary cost, but a cost of resources or other opportunities.)

5. What is the opportunity cost of producing a traditional music video?

6. Marginal Analysis Making decisions based on the change one more unit would bring about. Ex: When a person doesn’t make an all-or- nothing decision to eat a bag of potato chips but decides, instead, chip-by-chip, or at the margin, whether to eat another one. …So we must make choices using

7. PACED Decision Making Model P = State the Problem A = List the Alternatives C = Identify your Criteria E = Evaluate the Alternatives Based Upon your Criteria D = Make a Decision

8. Removing the Dead Whale!!! Start at 0:42

9. PACED Grid Alternativ es: Criteria #1: Criteria #2: Criteria #3: Criteria #4: TOTAL: 1) 2) 3) 4)

10. Video Clip Opportunity Cost