Supply and Demand
9-12
1
Opportunity Cost
Lesson Details
Grade Level
6-8
Duration (minutes)
1
Summary
A Grade 6-8 economics lesson explaining opportunity cost — what you give up when you choose one option over another, usually your next best choice — using a three-question method (what did I choose, what were my other options, which was my second favorite) and a $25 spending example to show how opportunity cost can differ from person to person.
Student Worksheet: Opportunity Cost
Teacher Note: Students can watch the video lesson above and answer the questions. Click the “Teacher Answer Key” dropdown below when you are ready to review the solutions!
Key Concepts:
• Opportunity Cost: What you give up when you choose one option over another — usually your next best choice.
• Not the Price: Opportunity cost is not the money you spend; it’s the other option you gave up.
• Finding It: Ask what you chose, what your other options were, and which of those options was your second favorite — that one is the opportunity cost.
• It’s Personal: Two people can make the same choice but have different opportunity costs, depending on what they wanted second most.
Instructions: Read each question carefully and write your answer in the space provided.
- Question 1: What is opportunity cost?
- Question 2: In the video’s example, if someone buys the video game, why isn’t the $25 the opportunity cost?
- Question 3: What are the three questions you can ask to find an opportunity cost?
- Question 4: Two students both buy the video game, but one gives up earbuds while the other gives up saving for a bike. Why can their opportunity costs be different even though they made the same choice?
- Question 5: Think of a choice you made recently with $10 or less. What did you choose, and what was your opportunity cost?
Click to reveal Teacher Answer Key
1. Opportunity cost is what you give up when you choose one option over another — usually your next best choice.
2. Because the $25 is just the price paid; the opportunity cost is the other option (earbuds or saving) that was given up.
3. What did I choose? What were my other options? Which option was my second favorite?
4. Because opportunity cost depends on each person’s own second-favorite choice, which can be different even when the final decision is the same.
5. Answers will vary — accept any reasonable response that identifies a choice and its next-best alternative.
Disclaimer: This worksheet was generated with AI assistance based on original video content. It is intended for educational reference only. Teachers are encouraged to review and adjust questions to fit their curriculum standards before classroom use.
🎯 Extension Activity: Interview a family member about a recent purchase they made. Ask what they chose, what their other options were, and use the three-question method to figure out their opportunity cost.