Economic Theories and Principles

• The course aims to provide students with knowledge of economic theories and principles.
• The course covers the analysis of the market system.
• The course covers means of production and consumption.
• The course covers exchange, and determinants of supply and demand.
• The course covers theories of consumer behavior.
• The course covers basic economic theories and the history of economics.
• Pre-service teachers should demonstrate understanding of consumer behavior theories, basic and historical economics.
• Pre-service teachers should demonstrate knowledge of the market system and the means of production.
• Pre-service teachers should apply critical and creative thinking by surveying small-scale businesses about challenges.

Approaches of Economics

• Theoretical approach develops theories based on logical deduction from general principles.
• Deductive reasoning is a method of economic investigation or analysis.
• The theoretical approach is known as the analytical abstract priori or hypothetical method.
• The theoretical approach requires assuming factual information and logical reasoning to reach a conclusion.
• The theoretical approach involves building a theory by including assumptions and experiments.
• Mathematical modeling uses mathematical tools to formalize economic theories and relationships.
• Behavioral economics integrates psychology to comprehend economic decision-making and behavior.
• The Empirical approach uses inductive reasoning, which reasons from part to whole and from particular to the universal.
• Bacon described inductive reasoning as an ascending process: facts are collected, arranged, and then general conclusions are drawn.
• Econometrics blends economics, statistics, and mathematics for quantitative economic analysis.
• Econometrics uses mathematical models to test economic theories and hypotheses.
• The goal of econometrics is to analyze and interpret economic data to understand economic workings.
• Experimental economics performs controlled experiments to examine economic behavior.
• Experimental economics studies human behavior in labs or the field, and not only through math models.
• Experimental economics uses experiments to test choices in specific situations.
• Experimental economics studies alternative market mechanisms; and it tests economics theories too.

Methods of Economics

• Statistical analysis employs descriptive and inferential stats to summarize data and test hypotheses.
• Mathematical optimization applies calculus techniques to maximize utility, profit, and other economic objectives.
• Simulation modeling constructs computer based simulations to analyze intricate economics systems
• Case studies provide in-depth analysis of specific instances to understand economic behavior and outcomes.
• Interview/Surveys gather qualitative information from people to understand attitudes, preferences, and decision making.
• Historical analysis looks at past events to see trends to use for current issues

Tools of Economics

• Microeconomic models analyze individual markets, firms, and households for decision-making insights.
• Macroeconomic models study aggregates like national income, unemployment, and inflation to analyze economies.
• Cost-Benefit: the tool for evaluating a policy to determine if its economically feasible.
• Input-Output, which looks at sectors of the economy to assess effects of economic changes
• National and international database provides economics data, (GDP, employment stats, trade flows).
• Econometrics software includes programs for statistical analysis and econometric modeling.
• Stata, R, and Python, are all softwares to use for statistical analysis too.
• Computational tools use methods for complex economic analysis.

Interdisciplinary Approaches

• Psychological insights integrate theories and experiments to explain deviations from rational behavior.
• Neuroeconomics uses neuroscience to study brain activity during economic decisions.
• Poverty analysis examines factors influencing poverty/inequality and evaluates policies to promote development.
• Institutional economics focuses on economic affects of structures (legal-frameworks and governance)