Unit 1 Decision-Making Grid Name:

What Should I Do After Graduation?

To satisfy peoples wants and needs we must make decisions. Good decision makers need to know
how to identify the problem and analyze all alternatives in a way that
considers costs and benefits. One approach to decision-making is the decision-making grid.

Recall Figure 1.4, p. 15 what would you do with 50 dollars? In this example, Jesse decided to spend $50.00
on jeans. His opportunity cost was the next best choice soccer ball or cassette player that he gave up.

Directions: Fill in four current possibilities you are considering for after graduation (i.e. 4 different colleges,
military, bum in parents basement, etc). Decide on the weight or importance of each criterion to you
individually and fill in the appropriate row. Rate the criterion for each choice from 1 (poor) 4 (exemplar)
based on how well it meets that criterion. Lastly, multiply each number by the weight of that criterion and
add the total scores for each option.
Example:
Overall Appeal
Extra-
Criteria Affordability Location and Long-term Total Score
Curriculars
Benefits
Weight x 5 x 2 x 3 x4
The Ohio State Rating x Weight =
University 2 x 5 = 20 2x2=4 3x3=9 3 x 4 = 12 45

Overall
Appeal
Extra- Total
Criteria Affordability Location & Long-
Curriculars Score
term
Benefits
Weight x_1_ x_3_ x_2_ X_4_ RATINGS
4: exemplary
University 4x1=4 4x3=12 4x2=8 4x4=16 40
3: good
2: satisfactory
of 1: poor
Wisconsin-
Whitewater
WEIGHT
Bradley 3x1=3 2x3=6 3x2=6 3x4=12 27 x4: Greatest
University x3: Good
x2: Fair
1x1=1 4x3=12 3x2=6 3x4=12 31 x1: Poor
Illinois
Wesleyan
2x1=2 3x3=9 4x2=8 2x4=8 27
University
of Illinois

1. In the end, which option satisfied more of the criteria than any other alternative?
University of Wisconsin-Whitewater satisfied all of my criteria than the other schools I looked at.

2. What was the opportunity cost of your decision?

 The opportunity cost to go to this school is to be away from family and choose my school that I loved
when I discovered it over my moms favorite.

3. What was the highest score? 40 (Whitewater) Lowest score? 27 (Bradley and U of I)

When do you think the opportunity cost is greater? Why?

The opportunity cost is greater if I went to Bradley or U of I because I would be giving up more
and I would not be as happy with my decision.
4. Why is using a decision-making grid an effective way to analyze an economic problem?
This grid helps you put your priorities in order and make the right decision in what I want to do.