Things I Did Not Know About Economics

Before starting my research for Unit 3, I looked at the field of economics as a somewhat boring one. I saw a discipline full of theories and models. It seemed pertinent to real-life scenarios, but didn't seem like it always worked out. I thought that everyone who graduated from college with an Economics degree ended up teaching the subject somewhere or doing the same things for less money than the Business majors doing them. However, through my research, my views on economics have totally changed. I thought that all economics was were generalized equations, graphs, and models. However, I have learned that this is not true. Economics is an everchanging field that applies to much more of your everyday life than imagined. Economics helps the government and banks set interest rates. It also helps companies decide on prices for almost all consumer goods. These may seem pretty straightforward applications of economics. However, in one article I discovered for my unit 3 work, an economist from George Mason university applies economic principles to crime. He uses the equilibrium model to show how the amount of total crime relates to a person's likelihood to commit a crime. As total crime increases, crime prevention measures, such as investigations and courts become less effective. Therefore, less criminals are caught. With that in mind, a person's likelihood of committing a crime grows as the total crime grows. The economist in question then uses this to relate crime to the overall economy and the money that could be used in consumer spending that is lost due to tax hikes to improve crime prevention measures. This is a very interesting topic relating to economics. Before beginning my research, I would have never guessed that such a thing was useful in the real world. However, on the contrary, I have learned that economic principles are applicable in almost every walk of life.