1. Economist or Econo-Mystery? Economists maintain a very focused perspective on human activity and as such are very analytical, preferring to use mathematics wherever and whenever possible in order to avoid biases that come from the economist or the society in which they live. Mathematical economics is testable by the degree of success that a result is verifiable. This is called positive economics. Non-Mathematical economics deals with expectations of what should happen and is inherently non verifiable but is testable by the degree of acceptance that is attached to its predictions. This is called normative economics. Both approaches share a set of basic principles that are upheld by all economist regardless of approach.

2. Working Like an Economist: Economists are actively involved in everyone’s lives as they analyze and investigate all matters dealing with prices, resource use, government taxation and subsidy policies, distribution systems, international agreements and trade regulation, unemployment and training, and market performance and conduct including output and input markets. Economists keep track of numbers and measure most things in dollars and cents in order to get a stable and reliable base from which to draw conclusions, but also follow trends and ideas that emerge from time to time that they may or may not have data on. Economists test themselves continuously but also try to maintain an open perspective on the rest of the world and how that might affect economic data. Economists balance these pressures dynamically and are both analytic and analogical.

3. Analytics versus Analogics Economics uses both analytics and analogics to reach policy assessments and as such both are valid in economics but analytics are more efficient in addressing some of the issues. Analytics are a method of approaching a problem that uses measurement and comparison amongst hypotheses to reach a decision. That decision may be limited by place and time and may or may not have representative value depending on assumptions that are made. EG: A wage of $10.00 per hour is better than a wage of $5.00 per hour. Analogics proceeds towards an open ended problem assessment in which the problem actually evolves as the solution is considered in different perspectives and as such relies on appreciation and understanding of the situation rather than measurement and comparison. EG: A living wage is better than a subsistence wage.

4. Ten Principles of Economics 1.People face trade-offs. 2. The cost of something is what you give up to get it. 3.Rational people think at the margin. 4.People Respond to Incentives. 5.Trade can make everyone better off. 6.Markets are usually a good way to organize economic activity. 7.Governments can sometimes improve market outcomes. 8.A country’s standard of living depends on its ability to produce goods and services. 9.Prices rise when governments print too much money. 10.Society faces a short-run trade-off between inflation and unemployment.

5. How to Think Like an Economist (and get through this course) Read about economics. The news is full of ideas and opinions on economics. Some people think that the economy is “good” or “bad” based on how it affects them, but the economy is everyone acting independently and this approach is equivalent to saying that everyone else, pursuing their own objectives, is “good” or “bad”. Use a website that gives you lots of different perspectives such as ctv.ca, cbc.ca, or bnn.ca Ask questions and open your mind to different points of view. Talk to your friends and study in groups. Extend your understanding by hypothesizing about what you expect will happen in the short term. If you hear of a change in a product that you are interested in buying or selling, make a guess about what you think will happen and test it out. Go over what you already thought you knew and see if you have changed your mind. Experience will often change your perspective. Summarize. Be honestly aware of what you are learning and apply it in as many areas as possible to develop your own positions on economic issues.

6. Taking Away the Confusion: Economists do not always agree but by discussion and searching for answers they all strive towards attacking scarcity and recommending policies that are intended to lead to enhanced prosperity for everyone, including themselves. The principles and approaches are not unique to economics as a social science but are more comprehensive than many other social sciences. Thinking and working like an economist is essential for business and public policy development in a universally franchised democratic society, although political concerns often invade and influence the economic approaches to problem solutions.