- [Tyler] Once you master the economic way of thinking,
you'll see the world in a very different way.
Two fundamental economic concepts are everywhere you look --
opportunity costs, and tradeoffs.
Let's start with opportunity costs.
At this busy coffee shop,
opportunity costs lie behind every decision.
Like for Jenny -- she's here for her third date with Adam.
Was that a good decision?
After all, economics is all about studying decisions.
Making a good decision is about comparing the benefits
of that decision to the costs.
The obvious costs for this date
for Jenny were the Uber ride she paid for to get here,
and her grande chai tea latte with whole milk.
But what's missing?
Her opportunity cost.
Opportunity cost means the value of the next best alternative.