Making Choices &Identifying Costs

SMART - by Shel Silverstein

Volunteer ??

Did the boy make a good decision in his trading?

Making good decisions is not about the decision made, but the process used in making that decision.

ALTERNATIVES: all the possible choices

CRITERIA: factors/reasons for ranking choices as “better” than others

PACED DECISION-MAKING PROCESS

STEP 1: define the Problem -- why must you make choice?

STEP 2: list the Alternatives - what are the possible options?

STEP 3: determine the Criteria - what makes one option better than another?

STEP 4: Evaluate the alternatives - how well does each option meet criteria?

STEP 5: make the Decision - which option has the most favorable trade-offs?

PACED GRID

PRODUCT RATINGS

CONSUMER REPORTS

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Does everyone make same choices?

Why not?

The PACED grid allows people to consider the trade-offs involved.

EXAMPLE?

GOOD DECISION MAKING

Is NOT above finding the right choice for everyone

IS about identifying and considering the relevant trade-offs and making the right choice for YOU.

Ranking various alternatives & choosing one that offers BEST trade-offs.

OPPORTUNITY COST

What is the opportunity cost of being in school today?

What is the opportunity cost of buying a new video game?

What is the opportunity cost of not paying your bills

What is the opportunity cost of spending all your money now instead of savings?

FOR EACH OF THESE DECISIONS - SOMETHING IS GAINED.

FOR EACH OF THESE DECISIONS - SOMETHING IS ALSO LOST !!

OPPORTUNITY COSTS OF SMOKING

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MAKING CHOICES

Fundamental part of life.