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Do you use facebook?

Photo of a smartphone with the Facebook application open
Economics is greatly impacted by how well information travels through society. Today, social media giants Twitter, Facebook, and Instagram are major forces on the information super highway. (Credit: Johan Larsson/Flickr)

Decisions ... decisions in the social media age

To post or not to post? Every day we are faced with a myriad of decisions, from what to have for breakfast, to which route to take to class, to the more complex—“Should I double major and add possibly another semester of study to my education?” Our response to these choices depends on the information we have available at any given moment; information economists call “imperfect” because we rarely have all the data we need to make perfect decisions. Despite the lack of perfect information, we still make hundreds of decisions a day.

And now, we have another avenue in which to gather information—social media. Outlets like Facebook and Twitter are altering the process by which we make choices, how we spend our time, which movies we see, which products we buy, and more. How many of you chose a university without checking out its Facebook page or Twitter stream first for information and feedback?

As you will see in this course, what happens in economics is affected by how well and how fast information is disseminated through a society, such as how quickly information travels through Facebook. “Economists love nothing better than when deep and liquid markets operate under conditions of perfect information,” says Jessica Irvine, National Economics Editor for News Corp Australia.

This leads us to the topic of this chapter, an introduction to the world of making decisions, processing information, and understanding behavior in markets —the world of economics. Each chapter in this book will start with a discussion about current (or sometimes past) events and revisit it at chapter’s end—to “bring home” the concepts in play.

Introduction

In this chapter, you will learn about:

  • What Is Economics, and Why Is It Important?
  • Microeconomics and Macroeconomics
  • How Economists Use Theories and Models to Understand Economic Issues
  • How Economies Can Be Organized: An Overview of Economic Systems

What is economics and why should you spend your time learning it? After all, there are other disciplines you could be studying, and other ways you could be spending your time. As the Bring it Home feature just mentioned, making choices is at the heart of what economists study, and your decision to take this course is as much as economic decision as anything else.

Economics is probably not what you think. It is not primarily about money or finance. It is not primarily about business. It is not mathematics. What is it then? It is both a subject area and a way of viewing the world.

Questions & Answers

what is terms of trade
Ibrahim Reply
No question... This is nice
Gbenga Reply
hw can we solve problem of scarcity
Oigebe
scarcity is not necessarily a problem but a constant condition of the world. there are not enough resources to satisfy the unlimited wants.
Matthew
why do compute GDP?
steven Reply
can anyone shortly determine the word inflation.
Ibrahim Reply
Continous increase in the general level of prices or in the cost of living.
arshad
persistent increased in general price level
Machall
all correct...
paa
the father of economics
Reuben Reply
Adem smith
sj
Adem smith
Ajit
Adem smith sure
Adigwe
the father of economic regarding to adam Smith
Ibrahim
the father of political of economic and capitalism in his book and inquary in to the wealth of the nation.
Umar
Adam Smith his the father of economic
Mamudu
different types of price elasticity of demand with the aid of graphs
Tshepo Reply
what about mean median and mode
Dike Reply
mode is the most occurred number and median is the middle digit
John
the mean is the sum of all the data divided by the number eg: 2+4+4+5+3+5+1 =24÷7
BEGE
economics
ghani
what is exchange rate
Festo
thanks guys
Runwell
What is Equilibrium?
Santos
that when supply equals demand. that's where the supply curve and the demand curve intercept.
Oladele
equilibrium is when the both side of the price is balanced
Asuquo
Thanks Asuquo Agwuu
Santos
what is paradox Of drift
doris Reply
***economicsdiscussion.net/income/concept-of-paradox-of-thrift-with-diagram-micro-economics/713
lungku
it's thrift not drift
lungku
so what is it sir
Festo
what are the causes of unemployment
Afful Reply
lack of job in the rural areas
Nicholas
High level of illiteracy
Muhammad
Unfulfilled government promises
Vee
this one no be problem waii
Nicholas
low rate of industrialisation
Mimi
elements of economic
Muhammad Reply
Supply demand consumer and money.
Muhammad
please would you explain further about short run and long run
Doris Reply
Can someone please tell about any social economic issue
Abdul Reply
what is economic growth
Enone Reply
Good morning. It is within a period of time that goods and services increase to become more efficient.
Hughes
Economic growth is also the growth of income and it can take place under conditions of high unemployment and general poverty.......
favour
I fink av answered your question
favour
Can someone please tell me about any Social Economic issue ?
Abdul
what is human capital formation
Thato
It deals with humans behavior
Afful
Can someone mention the types of unemployment
Afful
Interest
Afful
income inequality and poverty can be included as social economy
Festo
what is the relationship btn indifference curve and consumer utility maximization
Festo
what is the the law of diminishing marginal utility
Doris
pls one question at a time
Nicholas
the law of diminishing marginal utility states that , the more a commodity possessed les satisfaction is derived from it
Festo
structural unemployment, seasonal unemployment, disguised unemployment,
Festo
each indifference curve has its own level of satisfaction and for consumer utility maximization a budget line should be tangent to indeference curve.
Festo
let's discuss together guyz come on
Festo
can any one mention elements of economic
Muhammad
start it then
Doris
haw about human capital formation
Festo
Doris I don't understand about human capital formation, so how do u understand it?
Festo
please national income
Adigwe
national income means MKT value of all final goods en services in particular particular period of time usually a year
Festo
The transformation of raw human resource into highly productive human resource with these input. Human resource can be turned into human capital with effective input.
Doris
Muhammad, as in environmental sense ?
Hughes
From my understanding I am currently taking up Econ 302 Principles of Economics. There's 3 that I know of. 1. Traditional 2. Command 3. Market
Hughes
What is National incoming Accounting
Nicholas Reply
Intrested
yassine
National income accounting is the aggregate data use to major the well being of an economic.
Ibrahim
What's Bank?
ZIGGI Reply
A bank is A Financial institution that accepts the deposit from the public and lending this money to the public in the form of loans and advances
xaid
A bank is as well an institution that manages the flow of the currency
sbu
A bank is the place where banking activities is been carried out.
Nicholas
And a bank is where treasures goods are kept and must be insured.
BEGE
banking and a Bank are two different things
Nicholas
banking is the act of accepting money as deposit, giving of loans, and keeping treasure bills for consumers
Nicholas
a bank is a financial institute that accepts deposit n give out loan
doris
a bank is a place where transactions are taking place.
Ibrahim

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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