Economics: A Study of Trends

Title: Economics: A Study of Trends

Date: 12 March 2011
Class: Economics IB HL
Category: Other Classes

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            In Economics, we learn about a lot of graphs showing different trends. We learn to understand these graphs and decide when to use these graphs in order to understand what is happening in the economy. These graphs have been created by economists who have been studying economics for years. Like science, through experimentation and data collection, these intellectual people have found a pattern and figured out how to show this on a graph. The study of economics now depends on these graphs that have been formed, as we base our knowledge on these graphs and these theories.

            Although these graphs are considered to be significant for a reason (the reason being that it has shown this pattern throughout history), how do we depend on these graphs to actually work in our economy? Who decides there is enough information to call it a trend and publish it as a theory? Are the past statistics enough to base our economy on these graphs and risk the people’s lifestyle (employment rates, prices of products, demand for products, interest rates etc.)? Just because it happened for years, does it mean it’ll continue to happen in the future? Will the past necessarily repeat itself? (Knowledge Issues)