Thinking Like An Economist- Macro/MicroTopic 1.1

Jacob Clifford discusses a WWII problem where economists optimized plane armor placement. Abraham Wald's insight was to armor areas without bullet holes, as these planes didn't return. This illustrates the importance of considering unseen effects in economics. The video explains scarcity, resource allocation, and the factors of production. It distinguishes between macroeconomics and microeconomics, emphasizing their roles in understanding the economy. Clifford introduces widgets as memory aids and concludes with a call to action for viewers.

In what ways can understanding economics help in decision-making?

What lesson about economics did Thomas Sowell emphasize?

What are the factors of production mentioned in the video?