Learn some economics:

Economic View:  A Course Load for the Game of Life
By N. GREGORY MANKIW
To better understand the world in which they will live, students need foundations in economics, statistics, finance and psychology.

This is not meant to be self serving but actually because economics is useful for understanding why the economy fluctuates and why students need to work on “learning to learn,” and continue developing skills in reading, writing and thinking.   College is not the place to “punch your ticket” to get a job.  Any job we might train you for will likely be obsolete in four years.

The decision environment is the benefit/cost “space” where a rational decision maker must exercise reason.  In economics we often measure  benefits and costs in dollars but they could be measured in time and/or effort or any of a million other metrics.

I found the second paragraph (extracted here) of the following post to be useful in attempting to understand the approach.

From yahoo answers

Explain how the principles of economics affect decision-making, interaction, and the workings of the economy?

Economics can be used to explain just about any decision. Consider trade for example. This can be on a macro level such as trade between countries or on a micro level such as me buying a can of Pepsi at the store. Why do people engage in trade? In both examples, there is a mutual benefit for both parties to trade. In the Pepsi example, I value a can of Pepsi most likely because I am thirsty and I like the taste of it. The store owner values the money that he can make by selling the can of Pepsi. Thus a trade between me and the store owner takes place and both of us end up happier in the end – I got my can of soda that I wanted and the store owner made a profit, otherwise why else would he have sold the can to me?

This also encompasses how economics can influence interactions between people. People generally make decisions in an effort to create a benefit for themselves. There will always be a need for resources, which can be anything from the water you drink to the computer you are using right now. Because all resources are scarce, people need to allocate how they want to spend their time, and by extension, their money on resources. Economics is the study of this. So this means people must interact with their environment and other people and come to rational decisions to obtain the best allocation of resources for themselves. This is also how the economy as a whole works. As described above, countries trade with one another because there is a mutual benefit for them to do so. On a national level, firms, the government, and people make decisions/interactions everyday on how to allocate resources and how they spend their time & money doing it. For example, people choose to spend their time working for firms because there is an incentive to do so just as there is an incentive for the firms to employ them.

We can graph the “decision environment” which we will do often in Principles of Microeconomics.  Finally, it is important to remember that economics provides a model of human behavior.  There are many other models of human behavior.  Knowing and applying/interrogating these models is the primary job of the social scientist.

Rubrics are fun!

As a reminder to myself and a nod to those who kept me company I leave this trail:

I met a former President of KFTC and was pleased to learn about the broad form deed.  This was a direct discussion about the passing of a constitutional amendment which was necessary to protect landowners from growing  abuses of land owned by individuals who had sold their mineral rights.

I met Martin Richard of KFTC  who was very helpful and knowledgeable about many things.  Martin works with KFTC on community economic development.

Perhaps most compelling for me was the session focused on the carbon offset market and MACED role in helping develop verifiable high-quality carbon offsets.  Scott Shouse, a forester from MACED was willing to listen–and respond–to my questions.

I also met folks from the Woodland Community Trust, Marie and Carol, who provided a very interesting perspective on community forestry.   From this session I am reminded about the depth of reverence that should accompany analysis and discussion of “the forest.”

Thanks to all who made this a pleasant and productive visit.  Sorry I missed the music.

by Alix Spiegel

This story includes a section about the connection between trust and economic growth. Does this same connection exist at the regional level in, for example, Appalachia?

April 22, 2010

Listen to the Story

The Return of History

By DAVID BROOKS

Published: March 26, 2010

After the crash, economics will have to acknowledge its methodological failures and come to resemble an art rather than a science.

Here is the link to the story.

1. An “economic naturalist” question.  Why is the sidewalk in front of Draper cleaned every 3 hours during a snow and the sidewalk in front of Pearson cleaned only once per day?
2. Warning signs and “level” questions.  Is one warning sign about a slick floor sufficient?  So there is a large marginal benefit to using the FIRST SIGN.  Would there be a marginal benefit of a SECOND SIGN warning of slick floors?  What number of warning signs is optimal.  When does the MC exceed the MB.
3. Another level question.  How often–during a snow and the days after–should facilities management clean the sidewalk.  Once per day?  Twice per day? 100 times per day?  What is the optimal?  Draw a picture and think about this.