Economic Decision Making and Skills
Economic decision making relies on the analysis of data. Economists use data to explain trends and decide among economic alternatives. Individuals use data to determine the condition of their finances and to make savings and investment decisions.
1. Economists analyze multiple sources of data to predict trends, make inferences and arrive at conclusions.
To predict trends, make inferences and arrive at conclusions, economists analyze many different sources of data.
For example, economists would use many sources of data (e.g., disposable income, quintiles of income distribution, stock prices, inflation) for a study of the impact of a tax cut on consumer spending. Economists would use data appropriate to the study of the effect of falling gasoline prices on consumer driving habits or the effect of deficit spending during a recession.
Expectations for Learning
Using several sources of data, predict a trend, make an inference or arrive at a conclusion relating to an economic issue.