Class 14: Trade off and Opportunity cost

Today, Mr Rizzo talks about the opportunity costs and trade off, which are two of the very important basic economic principles. As economics is the study of scarcity, people made decisions and people interact with each other in order to make the maximum profit while reduce the cost. Since there is no such thing as free ( having anything without sacrificing anything), people can only make the best decision out of their best interest based on opportunity costs and trade off.