Unit 1: Economic Value
In the first unit, we cover the fundamental basic building blocks of the Austrian school's approach to economics, beginning with addressing the basic questions: what is a good, what is utility, and what is value? The starting point of Austrian economics is the insight of economist Carl Menger that all value is subjective. There is no value without the individual making the valuation. We also discuss the concept of marginal analysis and what it means, how human economic decisions are taken at the margin, and how this can help us resolve the famous water-diamond paradox, which asks: if water is so essential and valuable to humans, how come it is so much cheaper than diamonds, which are not essential?
Completing this unit should take you approximately 3.5 hours.
1.1: Goods, Value, and Scarcity Lecture
1.2: Goods, Value, and Scarcity Discussion
1.3: Goods, Value, and Scarcity Review