[Script Info]
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[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Tyler] Once you master \Nthe economic way of thinking,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you'll see the world \Nin a very different way.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Two fundamental economic concepts \Nare everywhere you look --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,opportunity costs, and tradeoffs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Let's start with opportunity costs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,At this busy coffee shop,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,opportunity costs lie \Nbehind every decision.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Like for Jenny -- she's here \Nfor her third date with Adam.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Was that a good decision?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,After all, economics is \Nall about studying decisions.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Making a good decision is \Nabout comparing the benefits
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of that decision to the costs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The obvious costs for this date
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for Jenny were the Uber ride\Nshe paid for to get here,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and her grande chai tea latte\Nwith whole milk.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But what's missing?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Her opportunity cost.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Opportunity cost means the value \Nof the next best alternative.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,For instance, instead of going\Non her third date with Adam,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Jenny could've been binge watching\Nher favorite tv show.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,She might've been \Non a first date instead,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with Roman.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Or she might've been \Nhaving breakfast
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with her very sweet sister.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Let's say her next best option
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,would've been \Nbreakfast with her sister.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Does the benefit \Nof this third date with Adam
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,outweigh the opportunity cost?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It might seem strange \Nto think this way about romance,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it doesn't mean it's \Nabout calculating every decision
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to the last penny.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Nonetheless, Jenny's time, \Nattention and energy --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,those are scarce.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And if she doesn't consider \Nthe alternatives at all,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,she might be wasting \Nparts of her life.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There's another \Nfundamental related concept
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,from economics -- tradeoffs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Take these sprinklers \Nin the ceiling of the coffee shop,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,foe example.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Adding sprinklers can \Nmake it safer during a fire,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but they also can cost \Na lot of money to install.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,How much cheaper would \Nthe coffee be without them?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In a world of scarce resources,\None typically has to choose.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There's a tradeoff -- \Nsafer buildings cost more,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but that means the coffee can \Nbe more expensive.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The line is out the door here.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Perhaps the owner has considered\Nopening a second location.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,As the building code however\Nbecomes more stringent,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the cost of opening \Nan additional location goes up.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's not just the direct \Nmonetary costs of paying
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for things like sprinklers.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's also the opportunity costs\Nof the extra time and effort
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to file permits, manage the work\Nand schedule inspections.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,A more stringent building code \Nmeans a higher cost
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for opening up new businesses.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And in turn, \Nthat higher cost can mean
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that fewer new businesses \Nget opened.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What's the right tradeoff\Nbetween making buildings safer...
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and making it easier \Nto launch new businesses?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Once you see these tradeoffs,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you'll find them \Neverywhere you look --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,healthcare,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,food,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the environment.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,education.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,One more decision to consider --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,if you're a teacher, \Nshould you spice up
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,your economics class \Nby checking out our free unit plan
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that uses this video?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If you're a learner, \Nshould you watch another MRU video?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, YouTube is full \Nof entertaining videos,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[cat meows]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but please, of course, consider\Nthe opportunity costs.