banjonomics: an introduction to the world of economic thinking mark c. schug, ph.d. university of...
TRANSCRIPT
![Page 1: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/1.jpg)
Banjonomics: An Introduction to the World of Economic Thinking
Mark C. Schug, Ph.D.University of Wisconsin-Milwaukee February 5, 2010
![Page 2: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/2.jpg)
Overview
Perspectives of history and the social sciences
Introducing the economic way of thinking
Solving economic mysteries
Sources of mysteries Developing new
mysteries Wrap Up
![Page 3: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/3.jpg)
The Economics Myth
Myth Economics is all
about the money. Reality
Economics is all about how people make choices.
Economics is a way of thinking and understanding.
![Page 4: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/4.jpg)
Perspectives of History and the Social Sciences
History
Geography
Economics?
![Page 5: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/5.jpg)
How Do We Get Students Off to a Good Start Thinking Economically?
Demonstrate skills that require only a few basics to get started.
Maybe demonstrate the basics of a sport or a hobby you enjoy.
Swinging a gold club Grip Stance Backswing Impact and follow though
![Page 6: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/6.jpg)
How Do We Get Students Off to a Good Start Thinking Economically?
Knitting a scarf Casting with a spinning rod Driving a manual
transmission Playing spider solitaire Playing a musical
instrument
![Page 7: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/7.jpg)
Banjonomics
Learning how to think economically is like playing traditional folk songs on a 5-string banjo.
You need to learn 3 chords: G C D
![Page 8: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/8.jpg)
Using Mysteries to Introduce Economic Thinking
![Page 9: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/9.jpg)
FSU Student Mystery
FSU students have many things to. They have: Classes to attend Papers to write Books and articles
to read Tests to cram for Football games to
attend And private lives to
live
Why would FSU students, people with so much to do, attend a course on economics – the dismal science - - a course most students try hard to avoid?
![Page 10: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/10.jpg)
Handy Dandy Guide for Solving Economic Mysteries - - the six chords of economics
1. People choose.2. People’s choices involve costs.3. People respond to incentives in
predictable ways.4. People create economic systems - -
rules of the game - - that influence individual choices and incentives.
5. People gain when they trade voluntarily.
6. People's decisions have consequences that lie in the future.
![Page 11: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/11.jpg)
The Mystery of the Alien Bananas
Bananas are a tropical fruit.
No one in Tallahassee, Florida grows them.
Florida has no plan for getting bananas to grocery stores.
Yet, there they are there -- everyday.
How can that be?
![Page 12: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/12.jpg)
Economic Mysteries: Oil Reserves
Proven oil reserves stand at 531 billion barrels and we are consuming 16.5 billion barrels annually.
Quick! How many years will it take us to run out of oil?
This was the situation in 1970. By 2008, proven oil reserves
had increased to 1.15 trillion barrels even though the world is consuming about 30 billion barrels annually.
How can this be?
![Page 13: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/13.jpg)
The Battle for the Overhead Bins
Air travelers kiss their loved ones goodbye…
And then transform into baggage warriors stuffing all sorts to oversized bags rudely into overhead bins.
Why do they do that? Bonus Question: How
could a change in the rule of the game influence their their behavior?
![Page 14: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/14.jpg)
Economic Mysteries: Red Light Camera
In Duluth Georgia, red light cameras are credited with improving safety as drivers became more cautious at intersections.
But in 2009 the city police department wished to eliminate these safety devices.
Why would the police - - people hired to protect the public safety - - want the roads to be more dangerous?
![Page 15: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/15.jpg)
Why Are Teens Choosing Not to Drive?
The quest to get a driver’s license and access to the family car is less important to today’s teens.
Only 31% of 16 year olds got licenses in 2008 compared to 45% in 1998?
Why don’t today’s teens want to drive?
![Page 16: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/16.jpg)
Other Mysteries
Why with better safety features in cars like anti-lock brakes and air bags are car accidents increasing?
Why do people in poor nations have more children than people in affluent nations?
Why buy brand name products when generic products cost less?
![Page 17: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/17.jpg)
Still More Mysteries
Why can’t you buy a car on Sunday in Michigan?
Why air-condition the air in the desert?
Why can you easily talk to your lawyer on the phone and not your doctor?
![Page 18: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/18.jpg)
Sources of Mysteries
Capstone Focus: Understanding
Economics in U.S. History Great Economics Mysteries
Books Visit
http://www.councilforeconed.org/
![Page 19: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/19.jpg)
Developing New Mysteries
![Page 20: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/20.jpg)
Writing Your Own Mysteries
Be on the lookout for something that seems odd.
Pay attention to the news.
WSJ and NYT are good sources.
TV and other media also work.
![Page 21: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/21.jpg)
Develop a Primary Proposition
Polar bears can be dangerous.
The migratory route of polar bears takes them through the small town of Churchill, Manitoba.
Polar bears do great damage when they come to town: They pound on home
doors. They break into
homes. Small pets disappear. Trucks are attacked.
![Page 22: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/22.jpg)
Develop an Opposing Proposition
You might expect that the residents of Churchill would be searching for ways to hunt or divert the bears from their preferred migration route.
They are not. Most of the residents of
Churchill are delighted when the polar bears visit.
![Page 23: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/23.jpg)
Identify the Mystery Explicitly
Why would the residents of Churchill welcome such rude visitors to their community?
![Page 24: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/24.jpg)
Focus on Economic Principles to Solve the Mystery How are choices being
made? What are the costs? What are the incentives? What are rules of the
game might be influencing behavior?
How are people gaining from voluntary exchange?
What might be the consequences that lie in the future?
![Page 25: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/25.jpg)
Focus on Economic Principles to Solve the Mystery How are choices being
made? What are the costs? What are the incentives? What are rules of the
game might be influencing behavior?
How are people gaining from voluntary exchange?
What might be the consequences that lie in the future?
![Page 26: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/26.jpg)
Mysteries in Your Courses
Introduce your economics course with a mystery presentation on day 1.
Present a “mystery of the week.”
Ask students to develop mysteries as assignments.
Send all you new mysteries to me!
![Page 27: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/27.jpg)
![Page 28: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/28.jpg)
Art History ResearchThe Van Gogh Family
Obnoxious brother Dizzy Aunt Brother who ate
prunes Brother who
worked at a convenience store
Grandfather from Yugoslavia
Please Gogh Verti Gogh Gotta Gogh
Stop N Gogh
U Gogh
![Page 29: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/29.jpg)
Art History ResearchThe Van Gogh Family
Cousin from Illinois Magician uncle Mexican cousin’s
half-brother Constipated uncle Ballroom dancing
aunt
Chica Gogh Wherediddy Gogh Amee Gogh
Cant Gogh Tan Gogh
![Page 30: Banjonomics: An Introduction to the World of Economic Thinking Mark C. Schug, Ph.D. University of Wisconsin- Milwaukee February 5, 2010](https://reader035.vdocuments.mx/reader035/viewer/2022062618/551443b4550346414e8b4ab2/html5/thumbnails/30.jpg)
Art History ResearchThe Van Gogh Family
Bird lover uncle Nephew
psychoanalyst Brother who was a
Beatle
Flamin Gogh
E Gogh Rin Gogh