Summary: Scarcity is an economic term that describes the mindset people develop when they have many needs and not enough resources to meet those needs. When people operate out of a scarcity mindset, it can greatly impair their decision-making abilities.
Summary: The Pareto Principle describes how in a variety of situations, 80% of a product or phenomenon’s output often comes from only 20% of the available input. For example, a business may receive 80% of its income from the sale of only 20% of the products available in their inventory.
Overview: Feedback loops are cause-and-effect processes within organisms and systems. Negative feedback loops serve to maintain homeostasis or equilibrium. Positive feedback loops are used to intensify or change the status of a system.
Summary: The Tragedy of the Commons is an economic theory that describes how people often use natural resources to their advantage without considering the good of a group or society as a whole. When a number of individuals consider only their own welfare in this manner, it leads to negative outcomes for everybody, as the natural resource becomes depleted.
Overview: The Law of Diminishing Returns is an economic theory that describes how at a certain point, increasing labor does not yield an equally increasing amount of productivity. In other words, when the amount of input increases over time, at some point the rate of output decreases for each unit of input.
Summary: Confirmation bias is a cognitive error that people make when they are only willing to accept new information when it confirms what they already believe. People who fall into the trap of confirmation bias tend to purposefully seek out evidence that supports already solidified beliefs and purposefully reject any evidence that goes against those beliefs.
Summary: Occam’s Razor, also known as the Law of Parsimony, is a decision-making philosophy which emphasizes the rationality of simple explanations. If a problem has two possible explanations – a simple one and a complex one – Occam’s Razor rationalizes that the simple explanation is more likely correct.
Bronfenbrenner’s bioecological model is a theory of educational psychology that studies human development over time.