By Michael Foster
Minnesota Department of Education
Instructional Specialist
Economics is the study of how people coordinate their wants and desires, given scarce resources, and the decision-making mechanisms, social customs and political realities of their societies.
Economics is a way of thinking about the world based on a set of principles that are useful for understanding almost any economic situation, from decisions that individuals make about what to buy for their households, to the workings of highly complex international financial markets.
The study of economics enables students to make reasoned judgments about both personal economic questions and broader questions of economic policy in a complex and changing world. Today's students will face an increasing variety of important economic decisions in their personal lives and as citizens in a democratic society. A basic grasp of how markets work and the tradeoffs involved in trying to meet unlimited wants with limited resources is essential for meaningful democratic dialogue on what government should or should not be doing.
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