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McREL Standards
Economics Standard 1: Understands the scarcity of productive resources requires choices that
generate opportunity costs
Level I [Grade K-2]
Benchmark 3: Knows that a cost is what you give up when you decide to do something, and a
benefit is something that satisfies your wants
McREL Economics Standard 1, Level I, Benchmark 3

Lesson Objectives
Student will be able to identify that a cost is something that you give up when you make a
decision
Students will be able to identify that a benefit is something that satisfies your wants
Students will be able to evaluate how costs and benefits affect them in simulated situations.

Materials
³The Great Tooth Fairy Rip-Off by Dori Hillestad Butler
Fake money
Pictures or materials that can be ³bought´ or ³sold´ of various prices (either a table with actual
items or possibly a tri-fold with pictures of items)

Procedure
Introduction:

1. Introduce the lesson by doing a picture walk of the children's book, "The Great
Tooth Fairy Rip-Off" by Dori Hillestad Butler.
2. After reading the book discuss what Joey wanted and how he got it. Talk about
how he had to "give something up" to get what he wanted. Explain that when
you get something good it is called a benefit but it might cost something to get it.
What you give up is called a cost.
3. Introduce the vocabulary term V V
V  and give another example
yourself using the term: I _____ and that was my benefit. I gave up ____ and
that was the cost.
 VV  V
 


     V V  
V 
4. Ask students to share their own examples of a time they wanted something and
had to give up something else to get it using the format: I _____ and that was my
benefit. I gave up ____ and that was the cost.

Development

1. Inform students that today we are going to be having a classroom store

where they can buy things.
2. Direct students to the "store", a tri-fold with pictures of items with prices labeled
on them.
 3. Divide students into groups of 3-4. Have one member of each group come to the
front of the room to grab a baggie of money for each member of the group.
4. Have students take out their observation journals (used for science and social
studies).
5. Explain that each group will come up one at a time and students will have to
decide what they would like to buy with their money. Each group may come up
as many times as they would like - either until no one in the group as any more
money to spend or there is nothing left to buy.
6. When students are at their desk between their turns at the store, they will draw
pictures and/or write about what they chose to buy and what they had to give up
in order to get it. They will also draw/write about anything else they noticed or
thought was interesting during the activity.
7. When students are done shopping, each student will have a turn to share with
their group about their findings. Then, one spokesperson for the group will share
with the class about their findings.

Culmination

1. Each student will draw a picture of one want they had while shopping and what
they gave up to get it OR a want they have had outside of the classroom where
they had to give up something to get what the wanted. They will write one
sentence to go with their picture. These pictures will then be displayed on a
classroom bulletin board titled "Opportunity Cost - Was it worth it?"

Assessment/Reflection

- The effectiveness of the lesson will be judged by examining the extent to which the lesson
goals were met. I will evaluate this by informally assessing students' conversations and
observation journals during the task and by formally assessing their opportunity cost example
they created after the activity. By looking at their picture and what they wrote, I will be able to
judge to what extent they understand what costs and benefits are and know how opportunity cost
can affect them.