Learning Module 1 - Learning Module #1: Ten Principles of...

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Learning Module #1: Ten Principles of Economics Introduction Economic Choices On any given day, in any given city, it will not be difficult to find a shopping mall with thousands of people shopping in various stores. These stores will offer a wide variety of choices of goods; from electronic equipment, to designer clothes to organic vegetables. As one economist stated economics is "a study of mankind in the ordinary business of life". However, there are many questions which still need to be answered - some in this learning module and some in the coming learning modules. 1. How does our economic system work? How are prices of goods and services determined? 2. What forces determine economic outcomes in the economy? What can we do to improve economic outcomes? 3. What is the role of the government in the economic system? Should the government control the price of or tax certain goods and services, and what will be the effect of this government intervention controls? The market economy in action! Learning Module #1: Ten Principles of Economics Learning Module Objectives By the end of this module, students should understand: 1. that economics is about the allocation of TOP 10 REASONS TO STUDY ECONOMICS 1. Economists are armed and dangerous: "Watch out for our invisible hands."
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scarce resources. 2. that individuals face trade-offs. 3. the meaning of opportunity cost. 4. how to use marginal reasoning when making decisions. 5. how incentives affect people's behavior. 6. why trade among people or nations can be good for everyone. 7. why markets are a good, but not perfect, way to allocate resources. 8. what determines some trends in the overall economy. 2. Economists can supply it on demand. 3. You can talk about money without every having to make any. 4. You get to say "trickle down" with a straight face. 5. Mick Jagger and Arnold Schwarzenegger both studied economics and look how they turned out. 6. When you are in the unemployment line, at least you will know why you are there. 7. If you rearrange the letters in "ECONOMICS", you get "COMIC NOSE". 8. Although ethics teaches that virtue is its own reward, in economics we get taught that reward is its own virtue. 9. When you get overeat, you can tell everyone that you are just researching the law of diminishing marginal utility. 10. When you call 1-900-LUV-ECON and get Kandi Keynes, you will have something to talk about. Module 1.1 - How People Make Decisions Introduction Economics is the study of how human beings coordinate their wants and desires, given the decision- making mechanisms, social customs, and political realities of that society. Economics examines the best to allocate scarce resources among competing uses "The Economy " is simply an abstraction that refers to the sum of all our individual production and consumption activities. The word "economy" comes from the Greek word oikonomos meaning "one who manages a household." This makes some sense because in the economy we are faced with many decisions (just as a household
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Learning Module 1 - Learning Module #1: Ten Principles of...

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