Economics is all around us, from the prices we pay to the ways we spend money and use resources. Staff from the Bank of Canada explain how to think like an economist and look for the economy at work in your daily life.
Download the video transcript.
Discussion guide
After you’ve watched the video with your students, use this guide to explore key concepts, check for comprehension and lead a discussion.
Key concepts
- Economists observe how consumers, businesses and governments interact in a marketplace. They also read between the lines to see how social factors also affect the economy.
- These observations help us predict how the economy may behave in the future to prepare now and be more efficient.
- Supply and demand and opportunity cost are two fundamental principles used in economics and apply to real life.
Comprehension check
Ask the following questions.
What advice do the economists give for thinking like an economist?
Answer: Be curious about the world around you. Ask questions about the causes of larger issues and the impact of economic decisions and how they impact one’s behaviour. Look at the bigger story behind the news and consider the more complicated long-term impact.
What are some examples of economics we experience all the time?
Answer: The video shows us ways the economy plays an everyday role in our lives. The physical and digital money we use are part of the economy, as are imports and exports. Larger issues like the availability of jobs or changes in prices over time are big issues that we also encounter regularly.
How can you explain the two extended concepts the economists talk about?
Opportunity cost: If you choose to go out with friends rather than doing your homework, you lose the opportunity of being ready for a test. That’s the cost of going out with friends. The same goes for choosing to buy a morning coffee – that $2 then can’t be used to buy some gum or a chocolate bar.
Supply and demand: If there is a demand for a product, people will pay for it. Social media is an example of this: content creators rely on the demand of consumers who not only consume the content but may directly or indirectly buy a promoted product as well. Demand for this content on social media increases supply.
Group discussion
Ask the following questions.
- After hearing the speakers, how would you describe economics?
- Why is it important to think about economics in our daily lives?
- How would you use the economists’ advice in making your next decision?
Content type(s):
Multimedia
