Think Like An Economist

S E24: Thinking Big, Remembering Small - From Micro to Macro

Jan 5, 2021

The hosts discuss the main takeaways from microeconomics, including the four big ideas and their universal applicability. They explore the concept of opportunity cost, the transition from micro to macroeconomics, and provide insights into understanding intimidating topics like monetary and fiscal policy.

05:44

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Quick takeaways

Economics is built upon four fundamental principles: the cost benefit principle, the opportunity cost principle, the marginal principle, and the independence principle.

Macroeconomics explores big-picture phenomena and emphasizes that macroeconomic outcomes are a result of millions of individual microeconomic decisions.

Deep dives

Key Takeaway: Four Principles of Economics

The main takeaway from the podcast episode is that economics is built upon four fundamental principles: the cost benefit principle, the opportunity cost principle, the marginal principle, and the independence principle. These principles form the foundation for understanding incentives and how individuals respond to them. By applying these principles, economists can analyze various problems and make better decisions for themselves and predict how others will behave.

Introduction

2min

From Opportunity Cost to Macro: Exploring Economic Decisions and Phenomena

2min

Understanding Macroeconomics and Overcoming Intimidation

2min

Now we've learned the tools of microeconomics, it's time to step up to macro. Betsey Stevenson and Justin Wolfers are here to show you how millions of individual microeconomic decisions affect the macroeconomic world - and how macroeconomics gives decision makers the tools to make our lives better.

Co-host: Nastaran Tavakoli-Far. Editor: Alastair Elphick. A Modulated Media Production.

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