15.2 SkillBuilder activity EVALUATING, COMMUNICATING AND DECISION-MAKING Investigating opportunity cost in sport 1. Read each scenario and identify the opportunity costs (the next best alternatives that the tennis player is potentially giving up). a. Entering major Grand Slam, where winning could earn signiýcant ranking points and prize money. This is scheduled for the same month as a smaller local tournament b. Participation in an exhibition match with a famous player, which would surely gain publicity. 2. A tennis player has the opportunity to sign a lucrative sponsorship deal with a sports brand. However, the contract requires them to wear the brand’s gear exclusively for the next two years, limiting their freedom to choose other endorsements. The deal offers signiýcant ýnancial gain but restricts the player’s þexibility. a. What are the beneýts of signing the sponsorship deal? b. What is the opportunity cost of signing the deal (i.e., what is the player giving up)? c. What are the beneýts of not signing the sponsorship deal? d. What is the opportunity cost of not signing the deal? 3. Discuss the impact of opportunity costs on decision-making in tennis, or any other sport of your choice.
FIGURE5 The Australian Open tennis tournament can give us lots to discuss and even sporting scenarios can be linked back to economics.
15.2
Exercise
Learning pathways LEVEL1 1, 3, 8
LEVEL2
LEVEL3
2, 4, 5, 9
6, 7, 10
REMEMBER AND UNDERSTAND 1. Why do people work?
A. To avoid doing chores at home. B. To earn money and contribute to society. C. So they can go on holidays all the time. D. Because school tells them to.
538 Jacaranda Humanities Alive 7 Victorian Curriculum Third Edition
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