Junior Achievement Lesson 2.3 “Understanding the Cost of an Opportunity”

Let’s review our vocabulary: Quality: A level of excellence Quality Business: A business that tries to meet its customers’ needs through the process of continuous improvement and teamwork.

Continuous Improvement: The ongoing evaluation and change of processes, products, programs, and services to make them work better. Profit: The income a business earns after all the business expenses are paid.

CEO (Chief Executive Officer): The person responsible for all aspects of the business, such as overseeing the process of continuous improvement for the business.

“ It’s not hard to make decisions when you know what your values are.” -Roy Disney

Do you agree with this statement? Why or why not? Please write your response in the Daily Writing Prompt.

What are some of the most important decisions that you will be making in the future?

Imagine you have been given a $25 mall gift card to purchase a single item.

What are two items that you would want to buy with your gift card?

Now, you must choose between the two items. Which one would you chose?

Remember: A choice is the selection of one alternative instead of another

Which item did you not choose?

The item that you did not choose to buy is referred to as the opportunity cost.

Opportunity Cost: The value of the next best alternative given up when a choice is made.

When consumers make decisions about what to buy, they experience opportunity cost.

So Many Choices

At JA BizTown, you will have the opportunity to be a producer and a consumer.

As a consumer, you will have the power to make many choices.

Consumers make purchasing decisions based on their likes and interests.

As a producer, you will compete for consumer business.