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Chapter 103: What Do Economists Study

Chapter 103: What Do Economists Study

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👩 Teacher’s Guide

🎯 Objective

Students will be able to:

  • Identify key topics economists study, such as prices, jobs, growth, inflation, and trade
  • Explain how economists use data to describe and predict patterns
  • Distinguish between microeconomics and macroeconomics at a basic level

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📝 Teaching Notes

  • Key idea to emphasize: Economists look for patterns and cause-and-effect using evidence
  • Common misconception: Economists can predict the future perfectly
  • Suggested teaching approach:
  • Show a simple chart idea (prices over time) and discuss what could explain changes
  • Real-life connection: why the cost of eggs or gas changes

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💬 Discussion Starter

Ask students:

  • Why might the same product cost different amounts in different places?
  • What economic question would you ask about your school or community?

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🧒 Student Worksheet

Concept and Helping Material

This topic explains:

  • Microeconomics studies decisions of individuals and firms (like pricing in one market)
  • Macroeconomics studies the whole economy (like unemployment and inflation)
  • Economists study incentives, scarcity, and how resources get allocated
  • Economists use models and data to test ideas and compare outcomes

Why it matters:

  • Understanding what economists study helps you read news about prices and jobs and think critically about claims made with numbers.

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Vocabulary and Definitions

  • — The study of choices made by individuals and businesses
  • — The study of the economy as a whole, including inflation, unemployment, and growth
  • — A general rise in prices over time
  • — When people who want jobs cannot find work
  • — A simplified explanation of how parts of the economy work

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Samples (Examples + Short Analysis)

Sample 1 Why movie theaters charge different prices

Scenario: A theater charges more for weekend evening tickets than for weekday afternoon tickets.

Analysis:

Sample 2 Studying unemployment in a town

Scenario: A town loses a factory, and many workers need new jobs.

Analysis:

Sample 3 Comparing two smartphone brands

Scenario: One brand sells more after offering a discount, while another keeps prices the same.

Analysis:

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Practice Questions (QA)

1. Name two things economists study.

2. What is the difference between microeconomics and macroeconomics?

3. What is inflation?

4. What does unemployment measure?

5. Why do economists use models?

6. If rent rises in a city, is that more micro or macro? Explain.

7. If a country’s overall joblessness increases, is that micro or macro?

8. How can data help economists?

9. Why can’t economists predict perfectly?

10. What is one economic question you could investigate with a survey?

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Reflection

  • Pick one news headline about prices or jobs and explain what an economist might investigate.
  • What data would you collect to study how students choose lunches?