Unit 1 → Subtopic 1.1
The Economics of Everyday Choices
Every day, people make countless economic decisions, whether they realize it or not. From choosing which coffee shop to visit in the morning to deciding whether to buy a new smartphone or save the money for something else, economics influences nearly every aspect of daily life. This project will explore the economic reasoning behind everyday choices, analyzing the factors that guide decision-making and demonstrating how core economic concepts apply to real-world situations.
Students will examine common consumer decisions and break them down using economic principles such as opportunity cost, utility, scarcity, and incentives. They will identify a specific choice they or someone they know regularly makes, such as selecting between two competing brands, deciding whether to take public transportation or drive, or choosing to spend money on entertainment instead of saving it for the future. The goal is to reveal the hidden economic calculations that influence even the most routine behaviors.
To develop a strong presentation, students will research and collect relevant data, looking at price comparisons, consumer behavior studies, or surveys to support their analysis. They should also consider external factors that shape economic choices, such as marketing strategies, social influences, or government policies. By linking their chosen example to broader economic concepts, students will highlight the practical relevance of economics and demonstrate how individuals and businesses respond to changing conditions in the economy.
The final presentation should clearly explain the economic reasoning behind the chosen decision, incorporating visuals and real-world data where possible. Students will be expected to present their findings to the class in an engaging and structured manner, ensuring their peers understand the economic significance of seemingly simple choices. They will also respond to questions and defend their analysis, reinforcing their understanding of how economic principles shape everyday decision-making.
Recommended Procedure:
Select an Everyday Decision to Analyze – Identify a personal or widely recognized decision that involves economic trade-offs, such as choosing between products, services, or financial options.
Apply Economic Principles – Break down the decision using core economic concepts like opportunity cost, scarcity, and consumer behavior theories. Research relevant factors such as pricing, demand, and alternative options.
Gather Data and Supporting Evidence – Look at surveys, studies, or market reports that provide insight into similar consumer behaviors. Compare different options and their costs, benefits, and long-term effects.
Create a Structured Presentation – Organize the analysis into a logical format with clear sections. Use visuals, real-world examples, and engaging storytelling to illustrate the decision-making process.
Deliver the Presentation and Defend the Analysis – Present findings to the class, explaining the reasoning behind the choice and answering questions from peers. Engage in discussion to explore different perspectives on consumer decision-making.
Suggested Sources:
Consumer Decision-Making Theories:
Harvard Business Review: The Science of Consumer Choice – https://hbr.org
Investopedia: Understanding Consumer Behavior – https://www.investopedia.com
2. Economic Principles in Everyday Life:
Khan Academy: Opportunity Cost and Rational Decision-Making – https://www.khanacademy.org
Behavioral Economics Guide – https://www.behavioraleconomics.com
3. Market Research on Consumer Trends:
Nielsen Consumer Behavior Reports – https://www.nielsen.com
Bureau of Labor Statistics: Consumer Spending Data – https://www.bls.gov
4. Presentation and Data Visualization Tools:
Google Slides, PowerPoint, or Prezi for presentations
Data visualization tools like Canva or Infogram for charts and infographics
Grading Rubric:
Total Points: __ /20
