What is Economics? - Annie Shi
Economics is the study of how people, businesses, and governments allocate limited resources. It helps explain the choices we make in response to scarcity, where resources like money, time, and goods are limited. These decisions shape everything from personal finances to global markets.
On a personal level, economics guides everyday decisions, like budgeting or choosing what to buy. It also plays a role in business strategies, such as setting prices or deciding how much to produce.
On a larger scale, governments use economics to make policy decisions that affect things like unemployment, inflation, and economic growth.
Why are Economics Relevant? - Ian Kaczmarek
Even at a relatively young age, knowledge of economics is valuable for building a bright future. If you start investing small amounts as a teenager, these funds can grow into thousands of dollars with smart investing. Learning how to understand markets can also help in future job searches, whether you're applying for positions in economics or looking to impress interviewers with your knowledge.
Once you start earning money, economic knowledge can help you make wise choices about buying a house, changing jobs, or planning for retirement. Since the economy influences almost every aspect of life, understanding it helps avoid financial risks.
Supply and Demand: What Drives the Economy - Micah Nixon-Peroni
Supply and demand is the driving force in the economy that dictates the price of individual items. This concept means prices rise if demand exceeds supply and fall if supply exceeds demand.
On a smaller scale, supply and demand helps businesses decide on the best price for products to maximize profit. Some companies use a strategy called artificial scarcity, where they limit product availability to increase prices. However, if a company has a monopoly over a product, it can set any price since it controls the entire supply.
What is Inflation? - David Liao
Inflation is when the value of currency decreases, and prices rise. This phenomenon can have major impacts on both the national and global economy.
Inflation can be caused by various factors, but one common cause is a shift in supply and demand. It can also happen if a government prints too much currency, which decreases purchasing power without boosting the economy.
If inflation rises too fast, it can disrupt the economy as prices become volatile. Savings can lose value, and everyday purchases become more expensive.
Understanding inflation helps us adapt to economic changes, make sense of news reports, and see how economics shapes our lives.
Government’s Role in Economics - Nihar Brown
The government plays a major role in economics by regulating the import and export of goods. This is especially important for a consumer-driven economy like the U.S., where spending fuels growth.
Government involvement also includes setting interest rates. For example, during inflation, the government might lower rates to make borrowing easier. Additionally, government policy affects how much the country exports and imports, impacting national debt and overall economic stability.
GDP - Pavan Ciatto and Nolan Duclos
Gross Domestic Product (GDP) is a measure of the total value of goods and services produced in a country over a set time period. It is often used to gauge a country's economic health.
There are two main types of GDP: Nominal GDP and Purchasing Power Parity (PPP) GDP. PPP adjusts for inflation and cost of living, while nominal GDP provides a raw value without these adjustments.
Purchasing power parity is the exchange rate that equalizes the purchasing power of different currencies by comparing the cost of a similar basket of goods in each country.
The Stock Market - Colin Li
The stock market is a network where people can invest in companies they believe will succeed. Stock markets operate globally, enabling investments in companies around the world.
To invest, you buy shares, which represent partial ownership of a company. Share prices rise or fall based on the company’s performance, and investors can sell shares for profit when prices increase. Historically, stock investments return an average of 7% per year.
