Scarcity forces tradeoffs

Scarcity means we can't have everything we want, so we must choose.

Econ the Owl can only buy one thing, so he must choose between a shiny new pencil or a yummy cookie.

Incentives Matter

Incentives are rewards or punishments that encourage people to act a certain way.

Econ cleans his nest FASTER because he earns a gold star when he finishes

Cost Vs Benefits

People make choices by comparing what they give up (costs) to what they gain (benefits)

Econ decides doing homework so he can get his grades up and learn, instead of hanging out with his friends

A+

Future Consequences Count

Good choices today can help us later, and bad choices can cause problems later

Econ decided to do his home work, now that will help him later in the future for colleges.

Trade Makes People Better Off

Trade makes people better off because everyone gets something they want

Econ the Owl trades his extra apple for his friend's book, now both of them are happy!

Markets Coordinate Trade

A market is a place where buyers and sellers come together to trade goods

At the Owl Forest Market, Econ buys apples that the farmers grew themselves.

Thinking at the Margin

Thinking at the margin means deciding if doing a little more or a little less is worth it

Even though Econ already watched one boring show, instead of watching one more show, he avoids a sunk cost and reads a book. 

Thinking like an economist means making choices by comparing costs, benefits, and consequences

This way of thinking is important because people have limited time, money, and resources.

It helps people choose options that bring the most benefits now AND in the future.

Econ the Owl Thinks Like an Economist!

Thank you for going on adventures with Econ the Owl, hope you found this information useful!