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Concept: Opportunity Cost Definition: When people make a decision, the most valuable alternative they give up is their opportunity cost. Comprehension Questions: Why did Sam get to go shopping with his mother? (His grandparents gave him four dollars to celebrate the New Year.) What did he want to buy first? (sweets - buns and cookies from the bakery) What did he really want to buy? (toys from the toy store) Why didn't he buy a toy for himself? (He didn't have enough money. Money was scarce and everything cost more than four dollars.) What did he end up doing with his money? (He gave it to a poor man who had no socks or shoes on his cold feet in winter.) What was his opportunity cost? (the toys he wanted) How did he make his choice? (He thought about how fortunate he was to have all the things he needed and wanted to help the poor man on the street.) Other Concepts: Economic Wants, Consumers, Scarcity, Money
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