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

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

Two fundamental economic concepts 
are everywhere you look --

opportunity costs, and tradeoffs.

Let's start with opportunity costs.

At this busy coffee shop,

opportunity costs lie 
behind every decision.

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

Was that a good decision?

After all, economics is 
all about studying decisions.

Making a good decision is 
about comparing the benefits

of that decision to the costs.

The obvious costs for this date

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

and her grande chai tea latte
with whole milk.

But what's missing?

Her opportunity cost.

Opportunity cost means the value 
of the next best alternative.