Thinking on the Margin | Economics For Everyone

Economists believe in optimization, but what does this mean for everyday decision making? How do you make decisions such as how long to study for, whether to spend an extra 30 minutes watching TV, is college worth it, and the list goes on and on. Well, since economics is all about choices, thinking like an economist may help you with questions such as these and others. Thinking on the margin is the key to decision making. When we make decisions, we are making comparisons between alternatives. What opportunity are you giving up? In this lesson Professor List will walk you through decision making like an economist. It may just change how you go about everyday decisions in your life, and how you think about decisions made by others. Chapters 00:35 What is marginal thinking? 00:49 Comparing marginal benefits and costs – fifth cookie and donation examples 02:57 Sunk cost fallacy 03:28 Opportunity cost – baseball bat example 05:01 Opportunity cost - Lyft ads example -- Setting aside math, E4E helps students everywhere think like economists and understand how economic thinking can make the world a better place. Whether you're an educator, a student, or a lifelong learner, Economics for Everyone is for you! Register at https://econ4everyone.uchicago.edu to access more than 60 videos featuring UChicago professors and researchers in our free microeconomics curriculum, available in English and Spanish.