Course Description

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

Course curriculum

  • 1

    Module Three: How Can Entrepreneurs Use Economics to Make Better Decisions?

    • Overview

    • Additional Resources

    • Concepts & Terms

    • Objectives

  • 2

    Lesson One: Scarcity, Choice, and Tradeoffs

    • 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

  • 3

    Lesson Two: Thinking at the Margin

    • 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

  • 4

    Lesson Three: Opportunity Cost

    • 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

  • 5

    Lesson Four: Sunk Costs

    • 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

  • 6

    Lesson Five: Distorted Decision-Making

    • 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