1. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko “The Economic Way of Thinking” 11 th Edition Chapter 21: The Limitations of Economics

2. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko 2 of 7 Chapter 21 Outline Introduction What Economists Know Beyond Mere Economics

3. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko 3 of 7 Introduction What does the economic way of thinking reveal about the workings of society? Is there anything of importance that it conceals?

4. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko 4 of 7 What Economists Know Economists know how things fit together. Economists understand complex social interactions. –Cooperation among people who are not acquainted. Economists help anticipate or explain unintended consequences.

5. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko 5 of 7 Beyond Mere Economics The efficient allocation of resources and effective social cooperation enlarge the realm of possibility, but they do not by themselves guarantee the progress of civilization.

6. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko 6 of 7 Beyond Mere Economics What are the advantages and limits to the economic way of thinking?

7. © 2006 Prentice Hall Business Publishing The Economic Way of Thinking, 11/e Heyne/Boettke/Prychitko 7 of 7 End of Chapter 21