Ten Critical Concepts
In This Chapter
Remembering economic decision-making’s fundamental elements
Avoiding errors by knowing essential concepts
A great line from the movie Kung Fu Panda is “there’s no charge for awesomeness.” In this chapter, I cover ten of the most awesome economic concepts — and there’s no extra charge. Remembering these critical concepts when making economic decisions helps you avoid bad decisions. And what’s really awesome is that you have just ten of them to remember!
Every economic decision incurs a cost. Reading this sentence means you’re giving up the opportunity to do something else — perhaps watch television. Decision-making is all about weighing alternatives, so it’s critical that you recognize the opportunity cost associated with your decisions.