Unit 1 · Lesson 4
Thinking on the Margin

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.