AP Macroeconomics · Unit 1 · Topic 1.2

Opportunity cost

You have six hours tonight to study for two tests, AP English and AP Calculus. Every hour you give one subject is an hour the other doesn't get. Turn that trade into a graph, then measure it.
Case study 1 · The trade-off

Spend six hours

Pick a subject, then tap the hours you want to give it. Watch where each plan lands on the graph.

0 English6 Calculus

Every plan starts from 6 hours of Calculus. Give some hours to English.

Full plans tried: 0 of 4

Tonight's possibilities

1234560123456Calculus (hours)English (hours)0 English · 6 Calculus
  • Your plan
  • Full plans you've tried
Case study 2 · Calculating opportunity cost

Measure a move

The table and the graph hold the same seven plans. Pick where you start, then where you move. The graph measures what you gain and what you give up.

Study plans that use all six hours
PlanEnglishCalculus
06
15
24
33
42
51
60

Six hours, seven plans

1234560123456Calculus (hours)English (hours)ABCDEFG

Tap a plan in the table or on the graph to start.

A second tap picks where you move. Tap a plan again to unpick it.

Check

What is the opportunity cost of moving from point C to point D?

Case study 3 · Per-unit opportunity cost

Count what you make

Real PPCs count goods, not hours. In one hour you can write 2 English essays or finish 1 Calculus problem set. Slide along the line and watch what each step costs.

Output from six hours

123456024681012Calculus problem setsEnglish essays8 essays · 2 sets

2 problem sets · 8 essays

One more problem set costs

2 essays

The hour it takes could have written 2 essays.

One more essay costs

½ problem set

An essay takes half an hour, half of a problem set's hour.

Check

What is the opportunity cost of 1 problem set?

Check

What is the opportunity cost of 1 essay?

Lab summary

Each case study unlocks one big idea

  1. The trade-off

  2. Calculating opportunity cost

  3. Per-unit opportunity cost