Opportunity Cost on a Production Graph

Start with the allocation sheet to introduce scarcity, then move to opportunity cost and cost-benefit analysis.

Plot a production possibilities curve for a made-up island and find each step's opportunity cost. The directions on the page read: Use the sample table to plot the curve on the grid. Plot and label points G, H and I, then write in the table whether each is efficient, attainable or unattainable. An answer key is included.

Yes, both. We made it for 7th grade Economics and Money, and it works the same at home or at school. At home, a student can work through it alone and then go over it with you, which shows quickly what is solid and what needs another look. In class it works as independent practice, homework or a warm-up, and you can print one copy or a full set.

An implicit cost is what is given up with no money paid, such as lost rent.

It shows the most of two goods an economy can make if it uses all its resources. Points on the curve are efficient, and points outside it are unattainable.

The sheet names five methods: price, first come, lottery, authority and need. Students decide who benefits and who loses under each.