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The 7 Principles of Economic Thinking
 Econ Alive Chapter 1 section 3
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An economic enigma is a puzzle
Something that can be solved using
the 7 principles of economic thinking
One of my former students called it a
contradiction. Looks like one thing
turns out to be the opposite.
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Because we cannot get all of the stuff we
need or want, we must choose between that
which we get and that which we must give up.
Like when selecting that most important of
devices the cell phone. Android or iphone?
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What will it cost me to
select this particular
item?
Cell phone perhaps +
data and other costs
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What will I get in return
for my Money or time?
Will the reward outweigh
the financial outlay?
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Marginal Costexpenditure for one
additional item like
shoes or pieces of
pizza.
Will getting one more for
the price be worth it?
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Marginal BenefitWhat do I actually
receive when paying
for that additional
item?
Maybe I shouldn’t have
eaten that 15th piece 
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People respond in
predictable ways to
what Economists call
incentives.
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Offer a reward for
finding someone and
more people begin
looking.
America’s Most Wanted
If you want more
people to come to your
store…
Or to buy more
stuff…
Then have a sale 
Quid Pro Quo
Black Friday following
Thanksgiving
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Do you do everything for yourself?
Make your own clothes? Farm your own
crops?
Of course not. Why not? TMPBO that’s why!
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If you build it…
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Ebay and electronic
make all of that easier
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Don’t forget malls and
outlet malls
They will come…
Amazon . Com also
has taken the world by
storm
As well as facebook,
twitter, as advertising tools
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Like Playing checkers,
there is more to
consider than just if
you can jump or not…
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Think about what COULD
result
Perhaps your move will
lead your opponent to
an even better move…
Or lure him into a trap!
What’s best in the long
run?