At its core, economics is about decision making. To make a decision, you must compare the benefits of an action to the cost of that action. If the total benefits of an action exceed the total cost (opportunity cost) of an action, then it is the “right” decision, and that individual, business, or government should do the choice they are analyzing. However, to make the proper decision, one must have the correct conception of “cost”. Often people do not consider all the cost of a decision – (i.e., both the explicit AND the implicit costs of a decision). This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
