WHAT IS

ECONOMICS?
Is it really important …
DID YOU KNOW…

Economics is
simply a social
science that
focuses on the
choices people
make.
Knowing about economics can help
us understand WHY people make
the choices they do
• Why do some people
choose not to go to
college?
• Why would someone buy
a more expensive
product when a lesser
priced good is available?
• Why would someone
drive to Florida when
they could fly?
Economic reasoning is everywhere,
appropriate, and always useful
• It can be used by any age group or
culture, in any situation or context. 
• The insights it provides are powerful
and can help you make sense of the
confusing world around you.
Knowing about economics can help
us unlock mysteries of
human behavior
• Many mysteries
can be solved by
learning how to
identify
incentives.
We can answer questions like…
• Why is Disney World cleaner than
Yellowstone National Park? 
• Why is buying “real” Christmas trees
(rather than artificial trees) better for
the preservation of trees and forests? 
• Why do so many patriotic Americans
not vote in Presidential elections?
• Why is a legislated increase in minimum
wage bad news for poor, low-skilled
teenagers?
By understanding economics, we
can dispel common myths and
misconceptions.
• Economics is all about institutions and
mathematical models
• Economics is all about money
• Bad choices have costs but good
choices do not
• Sometimes people just have no choice
With economic knowledge, we can
understand that things are the way
they are for a reason.
• Why is the demand for Nintendo Wii’s
so great?
• What is the price where the supply
meets the demand?
• Why do so many people dislike
monopolies, but everyone seems to
want to be one?
• How can businesses stay in business
when they don’t earn a profit?
Knowing about economics can help us
understand society at many different
levels and how it all connects.

• Households
• Businesses
• Country
• Globe
We can understand government better.
• Why are taxes
necessary?
• How is the economy
affected by the
government?
• How does the
government arrive at
its economic policies?
• What types of
economies do other
countries have?
 Why does the government
sometimes regulate wages and
prices?
Is government involvement a good
thing?????
That’s right, understanding
economics can help you
understand your country!
 Knowing economics can help us
THINK responsibly about economic
issues.
• Are there times when
global interests
should come before
national interests --
and what’s the
difference anyway?
• Do wealthy corporations help the economy or
hurt the consumer?
• What economic sectors are hurting and why?
What sectors have great potential for growth?
 Knowing economics helps us
understand what they talk about
on the evening news.
What is a ponzi scheme?????
How does the stock market work?
Why are so many homes being
foreclosed?
Is there any end
to this economic
downturn?
Knowing about economics helps us
appreciate the scarcity of resources.
There is a difference between
needs and wants.
We have to make trade-offs.
What is the next-best alternative to
what we give up???
Knowing about economic principles
teaches us to be smart about our
personal finances.
• It has been said that “An investment in
knowledge pays the best interest.”
• “A penny saved is a penny earned.”
• “In this world nothing can be said to be certain,
except death and taxes.”
• “Creditors have better memories than debtors.”
• “If you know how to spend less than you get,
you have the philosopher’s stone.”
~ Benjamin Franklin
Ever want to buy a car???
Should you get a
job???
How much should you be saving for
college???
Where should you invest your
money???
• It has also been said that “Economy is the
method by which we prepare today to afford
the improvements of tomorrow”
~ Calvin Coolidge
• In case the above statements are true, you’d
better be on the safe side and …
…Know your ECONOMICS!!!
Seriously, when you study economics you begin
to think differently! You begin to see patterns in
how economic cycles work…up and down, bull
and bear, boom and bust, growth and recession,
inflation and deflation, employment and
unemployment, expansion and contraction.
 Understanding how economics works
will help you survive the inevitable
times of despair.
• When you don’t get an
expected raise at work.
• When you have to
make a tough decision
about your money.
• When jobs are scarce,
inflation happens, or
when businesses are
failing.
That’s why taking this class is
sooooo VERY important.
 Like everything in life …
YOU will determine your own …
UNDERSTANDING!!!!!

• So buckle down and study!

• Make a commitment to this class.
• Keep an open mind.
• Try your best.
• Ask questions.
THE END … FINALLY!!!!!!