Lesson One: Making Decisions

Student Materials: Page 1 of 5
Decision-Making Vocabulary

Print this page. (PDF)

Making decisions means thinking about choices and predicting consequences. Sometimes it means taking risks and giving up things we want.

• alternatives
   

• consequences
   

• risk
   

• opportunity cost
   

• ?
   

You are trying to choose between two alternatives. Should you buy a CD or go out for pizza? You have enough money to do only one. The enjoyment you get from a CD might last longer than the enjoyment of eating pizza. You decide to give up going out for pizza. What is the cost of your decision called?