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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 X5 X3 X2 X4 RATINGS
4: exemplary
4x5=20 4x3=12 2x2=4 3x4=12 48 3: good
Illinois State 2: satisfactory
University 1: poor
2x5=10 3x3=9 4x2=8 4x4=16 43
University of
WEIGHT
Iowa
x4: Greatest
1x5=1 2x3=6 1x2=1 2x4=8 16 x3: Good
University of x2: Fair
Wisconsin- x1: Poor
Madison
University of 3x5=15 1x3=1 3x2=6 1x4=1 23
Illinois-
Urbana-
Champaign

1. In the end, which option satisfied more of the criteria than any other alternative?
Illinois State University satisfied more criteria than any of the others.
2. What was the opportunity cost of your decision?
By choosing this school, my opportunity cost is being taught at the best school for Speech-Pathology,
The University of Iowa.

3. What was the highest score? Illinois State University (48) Lowest score? University of Wisconsin-
Madison (16)

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


I think the opportunity cost is greater when the tuition cost of the school is almost doubled. I will have
to pay for my college, and it is important that I have as little to pay back in student loans as possible.
Also, being far away from my family is another great opportunity cost when trying to choose a college.

4. Why is using a decision-making grid an effective way to analyze an economic problem?


Yes, I think that a decision-making grid is a very effective way to analyze an economic problem because
it places all of the aspects of the problem into one, easy to read chart. It helps you analyze the pros and
cons of each problem and how the final scores weigh out in the end.