Introduction to Economics Honor

Vocational Activities

Requirements

  1. What is economics and how does it directly influence our lives?

    Answer: Economics is the science that studies how society produces, distributes, and consumes goods and services, managing resources that are limited in the face of unlimited needs. It directly influences our lives through the price of products, the value of wages, employment, interest, inflation, and purchasing power — in other words, in almost everything we do day to day. — The economy is in everything: prices, wages, employment, and interest — understanding the basics helps in making better decisions.

  2. Define:
    • Microeconomics
    • Macroeconomics

    Answer: 1) Microeconomics: the branch of economics that studies the behavior of individual units — people, families, and companies — and how they decide what to produce, consume, and buy, analyzing supply, demand, and price formation in a specific market. 2) Macroeconomics: the branch of economics that studies the economy as a whole, on a large scale, analyzing general indicators of a country or of the world, such as GDP, inflation, unemployment, interest rates, and the exchange rate. — Micro looks at the individual and the company; macro looks at the entire country — two scales of the same science.

  3. Define the following economic indicators and know the up-to-date figures for your country:
    • Exchange rate
    • Gross domestic product
    • GDP per capita
    • Gross National Product
    • Interest rate
    • National debt
    • Inflation rate
    • Unemployment
    • Trade balance

    Answer: 1) Exchange rate: it is the price of one currency in relation to another (for example, how many reais are worth one dollar). It shows the value of the national currency against foreign ones and influences imports, exports, and travel. 2) Gross Domestic Product (GDP): it is the sum of all final goods and services produced within the country in a given period (usually a year). It is the main indicator of the size of the economy. 3) GDP per capita: it is the GDP divided by the country's number of inhabitants. It indicates, on average, how much each person would produce, serving as an approximate reference for the level of wealth per inhabitant. 4) Gross National Product (GNP): it is the value of everything that the country's citizens and companies produce, both inside and outside the national territory, adding the income earned abroad and discounting that which foreigners generate here. 5) Interest rate: it is the cost of borrowed money or the return for those who save. In Brazil, the basic reference rate is the Selic, set by the Central Bank. 6) National debt: it is the total that the government owes to domestic and foreign creditors, the result of the accumulation of deficits over time. 7) Inflation rate: it is the general and continuous increase in the prices of goods and services, which reduces the purchasing power of money. In Brazil, the official index is the IPCA. 8) Unemployment: it is the percentage of people of working age and conditions who are looking for a job and cannot find one. It measures the degree of idleness of the labor force. 9) Trade balance: it is the difference between the value of what the country exports and what it imports. When it exports more than it imports, there is a surplus; when it imports more, there is a deficit. — These indicators are the thermometer of the economy. Updated data should be researched at the official source (e.g., IBGE/Central Bank).

  4. Know the history of the world economy and which economic model is adopted in your country.

    Answer: The economy evolved from barter (direct exchange) to the use of currency, passing through mercantilism, the Industrial Revolution (mass production), up to modern capitalism and socialism and today's globalized economy. Brazil adopts a market economy (capitalist) with State presence in some areas — called a mixed economy. — From barter to the digital age, the economy has changed a great deal; Brazil today follows a mixed market economy.

  5. Know the following economic theories:
    • Classical economics
    • Marxian economics
    • Neoclassical economics
    • Keynesian economics

    Answer: 1) Classical economics: a school started by Adam Smith that defends the free market, guided by the 'invisible hand,' in which the individual pursuit of profit generates collective well-being, with minimal interference from the State. 2) Marxian economics: based on Karl Marx, it criticizes capitalism with a focus on class struggle and the exploitation of labor, arguing that the value of goods comes from labor and that the means of production should be collective. 3) Neoclassical economics: it deepens the classical school and centers on supply and demand and on the rational behavior of the consumer and the company, which seek to maximize utility and profit, thereby determining the formation of prices in the market. 4) Keynesian economics: founded on John Maynard Keynes, it argues that the State should intervene in the economy, spending and investing to stimulate demand and employment, especially in times of crisis and recession. — Each theory proposes a different role for the market and the State — from Smith's free market to Keynes's intervention.

  6. Know the economic cycles faced by your country.

    Answer: Economic cycles are the phases the economy goes through over time: expansion (growth, more employment and consumption), peak (high point), recession (decline in activity and unemployment), and recovery (resumption). Brazil has already lived through several of these cycles — periods of strong growth alternating with crises and recessions. — The economy does not grow in a straight line: it alternates phases of expansion and crisis — understanding this helps with planning.

  7. Discover the direct relationship between economics and politics.

    Answer: Economics and politics are directly linked: political decisions determine the economic rules, and the economy, in turn, influences political choices. 1) Fiscal policy: the government sets taxes, public spending, and investments, directly affecting income, consumption, and growth. 2) Monetary policy: through the central bank, the government controls the interest rate and the issuance of currency, influencing inflation and credit. 3) Laws and regulation: political power creates labor, commercial, and tax laws that regulate the market. 4) Political stability: stable governments attract investment and generate confidence; political crises and uncertainty drive away investors and devalue the currency. 5) Reciprocity: the economic situation (unemployment, inflation, recession) usually decides elections and changes governments. In other words, those who govern shape the economy, and the economy shapes those who govern.

  8. Know how the economy of your country is structured.

    Answer: A country's economy is structured into three major sectors: the primary sector (agriculture, livestock, and the extraction of raw materials), the secondary sector (industry, which transforms raw materials), and the tertiary sector (commerce and services). In Brazil, the services sector is the largest, followed by industry and agribusiness, which carries great weight in exports. — Knowing the three sectors (primary, secondary, and tertiary) shows how the country's wealth is produced.

  9. Know how a country's economy can affect the delay or advance of the preaching of the gospel.

    Answer: The economy influences the preaching of the gospel: in times of prosperity there are more resources for missions, travel, publications, and social projects, but comfort can cool spiritual interest; in times of crisis and poverty resources are lacking and there are more barriers (hunger, instability), yet people tend to be more open to seeking God. Crises also open doors for the church to serve through social actions. — Economic resources make missionary work easier, but it is often in difficulty that hearts open most to the gospel.

  10. Discover at least 3 biblical records of economic activities.

    Answer: Three (or more) biblical records of economic activities: 1) Joseph stores wheat and manages Egypt's economy during the 7 years of plenty and the 7 of famine, selling food to the people (Genesis 41). 2) Jacob and Laban negotiate wages for the work with the flocks (Genesis 29 and 30). 3) The virtuous woman of Proverbs 31 buys a field, plants a vineyard, makes and sells fabrics, and conducts profitable business (Proverbs 31:16-24). 4) The parable of the talents, in which servants invest and multiply their master's money (Matthew 25:14-30). 5) The teaching of tithes and offerings, the economic basis for the support of the temple (Malachi 3:8-10).

  11. Carry out one of the activities below:
    • Visit a stock exchange and learn how it works.
    • Interview an economist or administrator and find out how economic principles can help your Club/unit.