We have been discussing opportunity costs and scarcity of resources. This is an opportunity to apply that knowledge to a real world scenario.

Think about your budget based upon your current income. Please read "Smart Phone and Budget Changes"as a reference guide before beginning the assignment.

https://files.stlouisfed.org/files/htdocs/publications/page1-econ/2018/04/02/smart-phones-and-budget-changes_SE.pdf

1. Define opportunity cost and identify how it is reflected in your spending choices.
2. What types of trade-offs occurred?
3. How would your decisions relate to scarcity?
4. How have some of your choices influenced your future opportunities?
5. What happens if you receive an increase in pay? Or get laid off?
6. Analyze the relationship between budgets and the circular flow model.
7. Explain your reasoning and show graphically, utilizing the circular flow model. You may use yourself as the example to demonstrate this in the circular flow model.Students may utilize Paint, Word (the shapes tool under Insert), OneNote (Draw tab), or hand draw the model.