Introduction

Purpose
The goal of Economics Academy 101 is to provide videos, lesson plans and Web activities that help students, through hands-on activities, to understand both the role of economics in our society and the role it plays in the “economic” world. Students need an awareness of how they are affected by the economy and how they, in turn, affect the economy. Economics Academy 101 is keyed to state social studies standards for Grades 4 through 8.

Why Study Economics
“Economics deals with society’s fundamental problems; it concerns everyone and belongs to all. It is the main and proper study of every citizen.”… “The common man is the sovereign consumer whose buying or abstention from buying ultimately determines what should be produced and in what quantity and quality.”

Ludwig von Mises (1881-1973)

We are the common man! We are the consumer! We are “every citizen!” But WHY should we study economics? Economics helps us to understand the use of our resources — natural resources, human resources and capital resources — to help people acquire the things they need and want.

Economics helps us understand how goods and services are provided and acquired (supply and demand). Economics helps us to understand the important concept of scarcity. Scarcity is not having sufficient resources to produce enough to fulfill unlimited things and services that we want.

Economics is both “the science that deals with the production, distribution and consumption of goods and services, or the material welfare of humankind” (dictionary.com) and financial considerations that we make individually and collectively. The focus of this project is to look at both aspects of economics in general (scarcity, production, consumption, distribution and the market economy) and to view economics with a historical perspective.