1.

2 Thinking Like an Economist

Objective: How can decision-maker's use the principles of economic thinking as tools to help them
evaluate, and, if needed, change the behavior of individuals for the greater benefit of society?

Questions from the Black Rhino Videos:

1. How is scarcity at play in this situation?

2. How is scarcity necessitating choice?

3. What incentives are encouraging poachers to kill black rhinos?

4. What is one microeconomic question that could be looked at regarding black rhinos?

5. What is one macroeconomic question that could be looked at regarding black rhinos?

6. What was your gut emotional reaction to the third video?

Cost-Benefit Analysis Three-Step Process of

Economic Analysis
Step 1: Understand Behavior

Role of Incentives

Be Sure to Consider Unintended Consequences Step 2: Evaluate Outcome

· Good or bad?

3 Options for Government Action Step 3: Consider Policy

· Role for government?

1. Private Property Rights

 1.2 Thinking Like an Economist

2. Change the cost or benefit

3. Regulate

Must also consider unintended consequences of changing current

situation

Positive Analysis Positive vs. Normative

Analysis

Your example:

Normative Analysis

Your example:

Recap: How can decision-maker's use the principles of economic thinking as tools to help them evaluate, and, if
needed, change the behavior of individuals for the greater benefit of society?