How Can Entrepreneurs Use Economics to Make Better Decisions?
Economics of Entrepreneurship Series Module 3
Module 3: How Can Entrepreneurs Use Economics to Make Better Decisions?
We live in a world where our resources are limited compared to our wants. Because we are faced with the fundamental economic problem of scarcity, we have to make choices that involve tradeoffs. This series of lessons provides an introduction to the basic economic concepts of scarcity, choice, decisions made at the margin, and opportunity cost. Economic thinking provides a set of tools that helps you make better decisions and enables you to better understand the choices of others. Entrepreneurs who use these critical thinking tools are in a position to make better choices about their business.
FEE Courses
Overview
Additional Resources
Concepts & Terms
Objectives
Introduction
Scarcity by Russell Shannon
Watch Video
Think and Reflect
Marshmallow Test by Absa
Watch Video
Think and Reflect
Activity: Making Decisions When Planning Your Business
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
Diminishing Marginal Utility: It's a Law by Art Carden
Read Article
Think and Reflect
Thinking on the Margin by Mario Villarreal-Diaz
Watch Video
Think and Reflect
It's the Margin that Counts by Dwight Lee
Read Article
Think and Reflect
Activity: Diminishing Marshmallow (Marginal) Utility
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
Watch Video
Watch Video
Think and Reflect
Opportunities and Costs by Dwight Lee
Read Article
Think and Reflect
Everyday Costs and Benefits
Lesson Quiz
Knowledge Recap
Bonus Material
Introduction
Sunk Costs: There's No Crying Over Spilled Milk by Steven Horowitz
Read Article
Think and Reflect
The Sunk Cost Fallacy
Watch Video
Think and Reflect
Activity: Applying Sunk Costs to the Concorde Jet Project
Knowledge Recap
Lesson Quiz
Bonus Material
Introduction
The Broken Window Fallacy by Henry Hazlitt
Watch Video
Think and Reflect
Economics 101: Moral Hazard
Watch Video
Think and Reflect
Can the F-35 Be Stopped?
Read Article
Think and Reflect
Lesson Quiz
Knowledge Recap
Bonus Material
Module 3 Badge