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- [Tyler] Once you master 
the economic way of thinking,

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you'll see the world 
in a very different way.

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Two fundamental economic concepts 
are everywhere you look --

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opportunity costs, and tradeoffs.

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Let's start with opportunity costs.

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At this busy coffee shop,

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opportunity costs lie 
behind every decision.

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Like for Jenny -- she's here 
for her third date with Adam.

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Was that a good decision?

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After all, economics is 
all about studying decisions.

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Making a good decision is 
about comparing the benefits

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of that decision to the costs.

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The obvious costs for this date

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for Jenny were the Uber ride
she paid for to get here,

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and her grande chai tea latte
with whole milk.

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But what's missing?

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Her opportunity cost.

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Opportunity cost means the value 
of the next best alternative.