Hello, human! I'd really like to know about the world of economics. Could you explain it to me?
Sure thing, Mr. Alien. There are 5 main focuses in the world of economics. Scarcity, opportunity cost, supply, demand, and incentives.
First off, is opportunity cost. Do you see that dog and cat over there? Let's say that you have a choice of buying either of them. If you choose the dog, then what would happen if you didn't choose the cat? If you chose the cat, what would happen if you didn't choose the dog?
Opportunity cost is all about making a choice out of two, and being at a disadvantage to that other option. Make sense?
Yeah, I think I get it.
Next is scarcity. We're in a fast food establishment that had to close down due to not having enough money for ingredients.