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Department of Economics�Fall 2026 Mixer

Probably speak for 10 minutes

Questions to follow

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Do you like money?

  • What will you learn in economics classes?

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  • What are the job market outcomes of economics students?

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What will you learn in econ classes?

  • How does a consumer make choices?
    • If a price changes, what will happen?

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  • What is the objective of businesses?
    • If a cost changes, what will happen?
    • What price can the business charge?

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What will you learn in econ classes?

  • Pick one

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  • Option A:
  • Gain $1000 for sure

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  • Option B:
  • Flip a coin
  • If heads: gain $2000
  • If tails: gain $0
  • Most people pick A

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  • Risk Averse

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  • How do we explain this?

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  • What are the implications?

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What will you learn in econ classes?

  • How do interest rates affect the economy?

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  • How do I compare money today with money in the future?

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  • What happens when not everyone knows everything?
    • Seller knows quality of used car
    • buyer does not

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What will you learn in econ classes?

  • Game Theory: strategic interaction between decision makers

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  • Rock-paper-scissors

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  • US vs. Soviet Union

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  • Auctions

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  • Pit stops in car races?

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What will you learn in econ classes?

  • Not just models to think about the world

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  • But also statistical techniques
  • to better understand the world with data:

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  • Econometrics
    • (Statistics for economics)
  • Data Science

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What Affects Student Test Scores?

Model:

Test Scores

= β₀

+ β₁(Student-Teacher Ratio)

+ β₂(Per Pupil Spending)

+ ε

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What will you learn in econ classes?

  • Multiple regression techniques:

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  • Control for many factors at once
    • rather than looking at one variable in isolation

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  • Identify unique effect of each factor
    • while holding others constant

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  • Avoid wrong conclusions
    • mistake of attributing effects to one variable
    • that are actually due to another

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What will you learn in econ classes?

  • Don’t you want to
  • know how these things work?

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  • Don’t you think an employer
  • would want an employee
  • who knows how these things work?

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Job market outcomes of econ students

  • First set:
  • https://www.newyorkfed.org/research/college-labor-market#--:explore:outcomes-by-major

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Do you like money?

  • What will you learn in economics classes?
    • Many important things

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  • What are the job market outcomes of economics students?
    • Better than most

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Do you like money?

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Participate in an economics experiment?

Why do economics experiment pay cash?

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Miracle of compounding growth�12%

$100(1+0.12)

$100(1+0.12)2

$100(1+0.12)3

$100(1+0.12)4

…

$100(1+0.12)10

…

$100(1+0.12)25

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= $112.00

= $125.44

= $140.49

= $157.35

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= $310.58

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=$1,700.01

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Miracle of compounding growth

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  • $100 initial
  • $100 every month
  • 40 years
  • 12%
  • =$929,814.80
  • $100 initial
  • $500 every month
  • 40 years
  • 15%
  • =$10,701,328.20

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  • $5 initial
  • $0 every month
  • 40 years
  • 15%
  • =1,339.32

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Roth IRA

  • Who earns less than $153,000?
    • $242,000 if married?

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  • You qualify!

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  • Income you paid taxes on can be deposited
  • Annual contribution limits
  • Can withdraw your contributions
  • High income people do not qualify!
  • Tax-free gains after 59.5

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Warnings

  • Before you make a deposit:
  • read the rules!

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  • Before you buy anything:
  • Dip your toes into pool
  • Start with boring (low beta) Vanguard ETFs
  • Do not recommend holding single stock
  • Beware the memes!

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  • Thanks

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  • I am happy to answer any questions

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  • JohnSmithEcon.com

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So where can Economics take you?

Some examples

Industry-Businesses of all types need economists to help decide prices and make other decisions

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Public Policy-economic analysis is crucial in making informed policy recommendations

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Data analysis-with strong quantitative skills, economists are employed to generate insights from raw data

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Public Sector-The government needs people to collect and maintain data so that it is useful in informing decisions

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Law School-abstract and critical thinking help in law school and beyond

Where can Economics take you?

What is Economics?

Economics is the study of choices when resources are scarce

Money is not everything, but it is something

Job market outcomes by major

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Department of Economics Club Representatives with

Philadelphia Federal Reserve President Patrick Harker

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Economics in bold

What you will learn (foundations)

Microeconomic Theory: The study of individual decisions

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Macroeconomic Theory: The study of the economy as a whole

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Econometrics: The study of converting raw data into insights

What you will learn (applications)

Financial economics

Data Science/Machine Learning

Game Theory

Behavioral Economics

Health Economics

Business Cycles

History of Economic Thought

Labor Economics

Inflation, Unemployment, and Public Policy

Experiential Learning

Course credit for

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*Internships

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*Independent Study (working with faculty)