Lesson 2: Economic Choices | Intercollegiate Studies Institute

Lesson 2 Lesson 2: Economic Choices

Presented by: Dr. Tawni Ferrarini
Northern Michigan University

Playlist

Scarcity, Choice, and Opportunity Cost

Every field of study has its own key ideas and ways of thinking. To think like an economist, you have to understand terms such as competition, incentives, scarcity, and opportunity cost. They are central to our daily lives, and integral to a productive economic system. This lesson shows you why.

Lesson Two Quiz

Test Your Understanding of Lesson Two

Start Quiz

One of the ways of understanding the consequences of economic decisions is to look at them in terms of the incentives they create, rather than simply the goals they pursue. This means that consequences matter more than intentions—and not just the immediate consequences, but also the longer run repercussions.

Thomas Sowell