What the heck did I sign up for?

What the heck did I sign up for? What is economics? And what can I expect to be learning this semester?

Breaking the rules. • The first rule of PowerPoint is never read what is on the PowerPoint. However, because the class has so many people in it I will be reading this to ensure everyone gets the information. • If people find it helpful I will put these on my website. • Yes, copy everything. If it seems like too much just ask “Welcher, do we need all of this?”

Wikipedia says… • Economics is the social science that analyzes the production, distribution, and consumption of goods and services. • Ahhh, ya. What does that mean?

Okay, let’s try that again. • You open the door to the fridge and gaze at the food inside and declare, “there’s nothing to eat in this house.” Later, you walk to a closet full of clothes and then think, “I have nothing to wear.” You are faced with scarcity. There never is enough of what you need or want.

Okay, let’s try that again. Continued • The fact is, there is plenty to eat and there are many clothes to wear. You chose to ignore the options you faced then and there, but eventually you know you will relent and eat the apple next to the shrivelled grapes at the bottom of the bin, and then put on the shirt and pants you hate. You are a creature of economics. Given scarcity, you look at the choices you face, evaluate, and then choose. The Everything Economics Book, pp1

Or, How about this? • Economics is the science that studies how people and societies make decisions that allow them to get the most out of their limited resources. And because every country, every business, and every person has to deal with constraints, economics is literally everywhere. Economics for Dummies

Or, How about this? continued • For instance, tonight you could be doing something other than your homework. You could be exercising, watching a movie, or talking with a friend. You should only be doing your homework if doing so is the best possible use of your very limited time. Economics for Dummies

Or, How about this? continued • In the same way, you should hope that the paper and ink used to make your textbook have been put to their best use and that every last tax dollar that your government spends is being used in the best way. Economics for Dummies

Or, How about this? continued • Economics gets to the heart of these issues, analyzing the behaviour of individual firms (businesses), as well as social and political institutions, to see how well they convert humanity’s limited resources into goods and services that best satisfy human wants and needs. Economics for Dummies

Scientific Method Qualitative methods: surveys, graphs and questionnaires. Mathematics: assists with making predictions and quantifying concepts. (How much do you like broccoli?) Statistics: understanding large groups, predictions, etc. Tools of Economists

Micro versus Macro • A video. • Micro(Greek for small)economics – studies individual people nd individual businesses; for people microeconomics studies how they behave when faced with decisions about where to spend their limilited budgets; for businesses, it studies how profit0maximizing firms behave individually and how they behave when competing against each other in markets.

Micro versus Macro • Macro(Greek for big)economics – studies the economy as a whole, concentrating on economy-wide factors such as interest rates, inflation and unemployment; macroeconomics also encompasses the study of economic growth and how goverenments use monetary and fiscal policy to try to moderate the harm caused by recessions.

Business, social science or science? • Business Schools: • Saint Mary’s University Sobey School of Business • Dalhousie University • Social Science? • Science? • Boston University

College and University • University: • Required for business or commerce. • A possible major in business or commerce. • A major in an liberal arts program. • An elective in a liberal arts, engineering or science program. • NSCC: • Business Administration Program

Just for common sense • Why do we pay taxes? • If the government wants more money why not just print the money? • Why are some countries rich and others poor? • In a recession like we’re in now what can the government do to make it easier? • How does the stock market work?

Start reading the newspaper and watching the news. • The news is filled with economic information: • CNN yesterday. • CBC yesterday. • CTV yesterday.

What the heck did I sign up for?