UNIT 7 – opportunity cost

UNIT 7 – OPPORTUNITY COST UNIT 7 – OPPORTUNITY COST TOPIC LECTURE GETTING READY 3 An occasion or situation that makes it possible to do something that you want to do or have to do, or the possibility.

UNIT 7 – OPPORTUNITY COST

TOPIC LECTURE

GETTING READY

An occasion or situation that makes it possible to do something that you want to do or

have to do, or the possibility of doing something:

an idea or a principle that is connected with something abstract

a result or effect of an action, event, situation, etc.:

something considered typical or representative, as of a manufacturer's products

having considerable monetary worth; costing or bringing a high price

an amount of money saved, collected, or provided for a particular purpose

to stop trying to do something

something that you can choose to have or do; the freedom to choose what you do

to strive to outdo another for acknowledgment, a prize, supremacy, profit, etc.; engage

a necessary or typical part of something; one of several parts that something

GETTING READY

GETTING READY

give up concept

opportunities

outcome

valuable

widgets

LISTENING

Watch the lecture and complete the notes below

Topic: Opportunity Cost (OC)

- Ex 1: 2 hours of free time

Two choices:

1 ………-> won’t have time to ………

-> OC = ………

2 take nap -> won’t have time to ………

-> OC = ………

The first important point about OC: ……….

The second important point about OC: ……….

clean apartment taking nap, feeling rested

cleaning apartment, having clean living space

“cost” = what you give up/ lost opportunity

cost # price/money

- Ex 2: ……… company having extra ………

Two choices: 1 ………

-> OC = ……….

2 ……….

-> OC = ………

Definition of OC: ………

- Ex 3: Same company with 3 elements: Advertising: ……….

Factory: ………

Workers: ………

-> If build a new factory, OC = ……….

money

$ -> advertising

new factory International widget

$ -> build factory/ more widgets

advertising the most valuable thing given up # all choices given up

not needed (already popular) needed (make more widgets)

needed (unhappy, want to be paid more)

workers’ raises

- Ex 4: Same 3 choices, different ………

Workers: ………

Factory: ………

Advertising:……… ……….

-> If build a new factory, OC = ………

outcome not needed (happy)

needed (old)

needed (to compete with another company)

advertising

Use the note to answer questions

ANSWER THE QUESTIONS

a What is the definition of opportunity cost?

Opportunity cost is the single most valuable thing we give up to get what we want.

b What is the opportunity cost of example 1?

If you clean your apartment, the opportunity cost is taking a nap or feeling rested If you take a nap, the opportunity cost is cleaning your apartment or having a clean living space.

ANSWER THE QUESTIONS

c What is the opportunity cost of example 2

If the company uses the extra money to build a new factory, the opportunity cost is advertising If the company uses the extra money on advertising, the opportunity cost is building a new factory.

d What is the opportunity cost of example 3?

If the company uses the extra money to build a new factory, the opportunity cost is the workers’ raises.

e What is the opportunity cost of example 4?

If the company uses the extra money to build a new factory, the opportunity cost is advertising.

FOLLOW-UP DISCUSSION

- Which example from the lecture did you think was the most useful? How did it help you understand opportunity cost?

- Do you think that the concept of opportunity cost is useful for

making decisions in your everyday life? Give an example of how

you might use it to make a decision in your life

LISTENING STRATEGY

1 Read the expressions that signal a new idea or topic Think of two more expressions with the same functions?

Let me start with … Now let’s talk about … What I want to discuss now is …

The first point that I want to make is …

Initially, let’s talk about …

2 Read the expressions that signal the end of one idea and the beginning of a new idea Think of two more expressions with the same functions?

Now that we have talked about …., let’s talk about …

That’s enough about … Let’s go to the next point …

Another point that I would like to make is …

Now let’s move on to another point, which is …

3 Read the excerpt from a lecture about work habits Then underline the lecture language that signals a transition

Marriage and work is an interesting topic, so let me start with the point that married couples have reacted in a variety of ways to the pressures they feel when both the husband and wife work We’ve seen that it’s a struggle for some couples, and somehow other couples can make it work Let’s move on to some of the polling data I collected with my colleagues last summer so that we can discover some of the reasons for these reactions

4 Listen to the lecture about the work lives of three family members Match the name of each person to the description of her work experience

1 Dina

2 Laura

3 Maria

a She has never worked

b She has worked in a fast food restaurant and

in an office

c She works in a law firm

5 Listen to the lecture again Write down the lecture language that signals a transition

from one idea to another

the family that I used in my study

first let’s look at

the example of the grandmother

let me start with

the trend that we see these days

now let’s move on to talk about

the differences in work and leisure between the generation

ok, now that we have talked about let’s talk about

FURTHER PRACTICE

Write NO MORE THAN TWO WORDS for each answer.

Four business values

Many business values can result in 1 ……… Senior managers need to understand and deal with the potential 2……… that may result

bridge confusion

smartphone

resources

unnecessary/not necessary chocolate bar

market share problem

THANK YOU FOR LISTENING