Economics · Micro
Scarcity, incentives & opportunity cost
The three ideas every economist uses: resources are scarce so every choice has a cost, the real cost is the best thing you gave up, and people respond to incentives (sometimes in ways you didn't intend).
Step 1 of 7 · Overview25 min read ·
Key idea
Prereqs: none. Next: Supply & demand. MIT 14.01 Lecture 1; Crash Course Economics #1; *Naked Economics* (Wheelan), *Basic Economics* (Sowell).Next: 1. Scarcity