9:59:59.000,9:59:59.000
- [Tyler] Once you master [br]the economic way of thinking,

9:59:59.000,9:59:59.000
you'll see the world [br]in a very different way.

9:59:59.000,9:59:59.000
Two fundamental economic concepts [br]are everywhere you look --

9:59:59.000,9:59:59.000
opportunity costs, and tradeoffs.

9:59:59.000,9:59:59.000
Let's start with opportunity costs.

9:59:59.000,9:59:59.000
At this busy coffee shop,

9:59:59.000,9:59:59.000
opportunity costs lie [br]behind every decision.

9:59:59.000,9:59:59.000
Like for Jenny -- she's here [br]for her third date with Adam.

9:59:59.000,9:59:59.000
Was that a good decision?

9:59:59.000,9:59:59.000
After all, economics is [br]all about studying decisions.

9:59:59.000,9:59:59.000
Making a good decision is [br]about comparing the benefits

9:59:59.000,9:59:59.000
of that decision to the costs.

9:59:59.000,9:59:59.000
The obvious costs for this date

9:59:59.000,9:59:59.000
for Jenny were the Uber ride[br]she paid for to get here,

9:59:59.000,9:59:59.000
and her grande chai tea latte[br]with whole milk.

9:59:59.000,9:59:59.000
But what's missing?

9:59:59.000,9:59:59.000
Her opportunity cost.

9:59:59.000,9:59:59.000
Opportunity cost means the value [br]of the next best alternative.