Decisions, decisions, decisions! How can anyone make all the decisions we have today! M&M's, Jelly Belly beans, and Star bursts all sound good! This lesson will show you a way to help with those little decisions!
You will define a problem, list two choices, evaluate the choices, identify what you gave up when you made that choice, and make a decision using a decision chart.
The following is an interactive story about a bear named Nathan. It is Nathan's birthday and he needs to make some important decisions. It is your job to help him make those decisions. Read the following story: Sweet Jelly Belly Beans
Let's review some of our basic economics:
- Nathan has a SCARCITY problem. He wants more than he could have. That's what SCARCITY is: not being able to have everything you want. Scarcity forces us to make choices.
- Nathan is a CONSUMER. Consumers are people who buy goods and services. And we know that Jelly Belly beans are goods - because we can hold them, taste them, and gobble them down!
- Jelly Belly beans are produced in factories. The PRODUCTION RESOURCES are the land that the factories are on (natural), the people who work at the factories (human), and the tools and equipment that are used in the factories (capital). You can see all these resources if you hover your mouse pointer over "Visit Us", and then click on the words, "Factory Virtual Tour" on the Jelly Belly site.
Now, let's get back to our story: Sweet Jelly Belly Beans Part II
Since a bag of Jelly Belly beans cost almost all of the $15, Nathan couldn't buy a mixture of those two flavors. He had to make a decision. The cost of that decision was his OPPORTUNITY COST - that's the one thing he gave up to buy Chocolate Cherry Cake flavor. What flavor did Nathan give up?
Pretend you have $15 to spend on Jelly Belly beans. Go to the Jelly Belly web site and fill out a Decision chart just like Nathan. Which flavor would you choose? What was your opportunity cost?
Groovy Candies is a website that offers a lot of choices of candies.