Does any of these economists sound familiar to you? You probably do not know any of their research, but everyday you are hearing and watching viral influencers speaking about Econmics in your social media feeds… Do you trust them?
‘PROS & CONS’ – Discuss in pairs and afterwards make a decision together.
Investment: Have you recently seen an advert or advice on social media encouraging you to invest your savings? What product are they trying to sell you? Do you know what a pyramid scheme is?
Social media: Do you think that every famous influencer buys all the products they show in their posts? Would you be able to advertise products that you would never be willing to use? Should videos make it clear when influencers have been paid to show a product?
Religion: Why do many people blindly trust their religious beliefs? Isn’t it strange that everyone thinks their own religion is the only valid one? Can ideology and beliefs influence economic thinking?
To develop good economic theories, it is necessary to simplify reality and start by assuming that all factors remain unchanged except the one being analysed, so that its effects can be observed. This principle is known by the Latin name CETERIS PARIBUS, which means “all other things being equal”
The economic approach most commonly discussed in the media today is ECONOMIC LIBERALISM. It is a doctrine that aims to provide scientific justification for the capitalist system and therefore treats it as an absolute truth that individual decisions produce the best results for society as a whole. If you think about it carefully, you are sure to find examples in which your “personal self-interest” can negatively affect the people around you. For example, if you feel hot in winter and decide to open the classroom window without asking the rest of the group. In Spain a majority of the population prefers a less capitalist system (in 2025).
BRANCHES OF ECONOMICS
Classification into branches of Economics
< Write one answer on each line in your notebook, classifying each statement as either Positive Economics (objective) or Normative Economics (based on opinion). Then state whether it belongs to Microeconomics (individual behaviour) or Macroeconomics (interactions between different agents).. >
1. Reducing taxes leads to an increase in consumption and production. +
2. One third of the food that is bought ends up in the bin without being eaten. +
3. If everyone stopped throwing away 25% of this food, world hunger could be eradicated +
4. Raising the minimum wage causes unemployment because businesses dismiss workers +
< We compare our answers as a whole class and observe that the mass media try to pass off a particular ideology as an irrefutable economic theory.. >
6.2. Demonstrate broad knowledge and a precise understanding of the economic and financial knowledge, skills and attitudes required, applying them consistently to specific situations, activities or projects.
