Theme 1 Lesson 3:
Decision Making

The students learn to use a particular model for making decisions. They apply the model in exercises that call for choosing a college and buying a personal computer. The model focuses on explicit identification of problems, alternative possibilities for solving problems, criteria for evaluating those possibilities, and the opportunity cost of the decisions arising from the process. The need to make decisions is shown to be based in the condition of scarcity.

Visuals & Activities


  • Choice
  • Cost
  • Decision
  • Opportunity Cost
  • Scarcity

Standards in Economics and Personal Finance

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