what is economics?
WHAT IS ECONOMICS?
LESSON OBJECTIVES 1. Define economics and discuss how the economy relates to our lives 2. Understand what social sciences are
WHAT IS ECONOMICS?
¡ S ocial science concerned with the way society chooses to use its limited resources, which have alternative uses, to produce goods and services, for present and future consumption.
WHAT IS ECONOMICS?
¡ S ocial science…
SOCIAL SCIENCE VS. HARD SCIENCE Social Sciences ¡ History ¡ Psychology ¡ Anthropology ¡ Political Science ¡ Linguistics ¡ Sociology ¡ Economics
Hard Sciences ¡ Chemistry ¡ Physics ¡ Biology ¡ Astrology ¡ Climatology ¡ Zoology ¡ Botany
SOCIAL SCIENCE ¡ S ocial Science – the study of human society
SOCIAL SCIENCE ¡ S ocial Science – the study of human society § W hat problems might social scientists have when studying human society? § P ut another way, why might a psychologist’s job be harder than a chemist’s?
SOCIAL SCIENCE ¡ S ocial Science Challenges 1. People are complex 2. People are hard to observe 3. You might not get the same results every time
¡ There are no laws in social science § example: Gravity vs. People
¡ S o what can economists do??????
SOCIAL SCIENCE METHOD ¡ S ocial Scientists get data from: § S urveys § G overnment and NGO Statistics § H istorical Documents § C ontrolled experiments § I nterviews
ECONOMIC MODELS ¡ E conomic Model – simplified description of the real world that is used to test theories about human behavior ¡ C eteris Paribus – With all other things being the same § I mportant assumption in economic models
RATIONAL DECISION-MAKING ¡ E conomists assume that people make rational choices in which they try to maximize their benefits and minimize their costs.
WHAT’S THE POINT? ¡ E conomics is about studying human society ¡ H umans are tough to study!! ¡ E conomists must collect the best data possible and build simple models to try and explain part of the economy ¡ E conomics is a powerful tool to help us understand the world, but it never gives a perfect explanation.
LESSON OBJECTIVES 1. Define economics and discuss how the economy relates to our lives 2. Understand what social sciences are
WHAT IS ECONOMICS?
¡ S ocial science concerned with the way society chooses to use its limited resources, which have alternative uses, to produce goods and services, for present and future consumption.
WHAT IS ECONOMICS?
¡ S ocial science…
SOCIAL SCIENCE VS. HARD SCIENCE Social Sciences ¡ History ¡ Psychology ¡ Anthropology ¡ Political Science ¡ Linguistics ¡ Sociology ¡ Economics
Hard Sciences ¡ Chemistry ¡ Physics ¡ Biology ¡ Astrology ¡ Climatology ¡ Zoology ¡ Botany
SOCIAL SCIENCE ¡ S ocial Science – the study of human society
SOCIAL SCIENCE ¡ S ocial Science – the study of human society § W hat problems might social scientists have when studying human society? § P ut another way, why might a psychologist’s job be harder than a chemist’s?
SOCIAL SCIENCE ¡ S ocial Science Challenges 1. People are complex 2. People are hard to observe 3. You might not get the same results every time
¡ There are no laws in social science § example: Gravity vs. People
¡ S o what can economists do??????
SOCIAL SCIENCE METHOD ¡ S ocial Scientists get data from: § S urveys § G overnment and NGO Statistics § H istorical Documents § C ontrolled experiments § I nterviews
ECONOMIC MODELS ¡ E conomic Model – simplified description of the real world that is used to test theories about human behavior ¡ C eteris Paribus – With all other things being the same § I mportant assumption in economic models
RATIONAL DECISION-MAKING ¡ E conomists assume that people make rational choices in which they try to maximize their benefits and minimize their costs.
WHAT’S THE POINT? ¡ E conomics is about studying human society ¡ H umans are tough to study!! ¡ E conomists must collect the best data possible and build simple models to try and explain part of the economy ¡ E conomics is a powerful tool to help us understand the world, but it never gives a perfect explanation.
