Do you have preconceived ideas about economics? Do you want to know how the economy works, but find yourself nodding off? Do you want to learn more but are turned off by the dry, technical language and “all this talk about money”?
In Economics 101, you’ll realize that economics doesn’t have to boring. In fact, exploring this subject will make you look at the world in ways that you would have never considered before. Economics lets you make connections between seemingly disparate things like the rate of unemployment and dear old Dad’s tendency to replace his underwear. And you’ll understand the world better. When interest rates change, you’ll be able to predict the ramifications. A meaningful discussion of stocks, bonds, mutual funds, and collateralized debt obligations will no longer sound like some strange dialect of Portuguese. While this is not a personal finance book, the principles of economics it describes will help you keep your own financial house in order.
In economics, expectations become reality and money is just a social construct. That’s not boring, that’s mind-blowing! After reading Economics 101, you’ll come to know and love concepts like diminishing marginal utility, and everyone’s new favorite, quantitative easing. Wrapping your mind around these ideas will help you make better sense of the economy around you and why people behave as they do in money matters (hint: it’s not always rationally!). You can even put the information to use by teaching your boss about controlling variable costs and maximizing profits. Exchange rates and savings flows will be like child’s play for you, capital and investment will take on a whole new meaning, and constructing a CPI and deflating nominal GDP will be second nature to you. Your poet hippie cousin that lives in a van and plays guitar will be thrilled when you explain to him why he is technically not unemployed.
Economics isn’t just about defining abstract terms like some of those I’ve mentioned. It’s actually an exercise in philosophy! By that I mean economics impacts every aspect of your life and influences everything that you do. And I mean everything! Economics teaches that nothing is free. Costs are involved with every choice, even if the choice doesn’t seem to have any bearing on money matters at all.
Economics isn’t something done by nameless groups somewhere far from home. All economic decisions are made by individuals. Individuals bear the cost of these decisions. Yes, that means you. Economics is personal. They do not set prices. We set prices.
After reading Economics 101, you’ll know why the world works as it does. Here, you’ll learn such things as:
Ready to start exploring the mind-expanding world of economics? Let’s go!