FACTORS WHY SOME STUDENTS IN MSU-IIT
DON’T KNOW ABOUT ECONOMICS
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A Research Proposal Presented to the Department of Business Economics
College of Business Administration and Accountancy
MSU-Iligan Institute of Technology

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In Partial Fulfilment of the requirements for the
Course Economics 102
Econometrics

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Jaycris C. Arquion

August 2013

Ignorance in Economics Subject is not offered in the course taken courses that offers economics subject lack of interest promotional activity of the subject

CHAPTER 1
Introduction

CHAPTER 2
Review of Related Literature

This study discusses the factors why people do not know economics. The researcher gathered the related literatures that are considerably helpful in conducting this study. This chapter encompasses the following categories which are mainly the economics and its meaning, the benefits of knowing economics and reasons why people are oblivious about economics.
Economics and its Meaning People of today’s generation are only aware of economics as an activity in which only supply and demand of a certain product is concerned. According to Robbins (2013), Economics is the study of given ends and scarce means. It is the science which studies the human behavior as a relationship between given ends and scarce means which have alternative uses. In connection to this, Economics is all about making choices. Meanwhile, Caplan and Henderson (2013) stated that Economics is not just about money. It is about weighing different choices and alternatives. Some of those important choices involve money and some do not. Kling (2007) agreed that the conventional definition of Economics as dealing with the allocation of scarce resources among competing ends applies. However, he added that some of the most interesting economic observations concern relative abundance. Economics, in its simpler sense, is all about efficient allocation of scarce resources among unlimited wants.
The Benefits of Knowing Economics Economics plays a major role in people’s all aspects of lives. It is a subject worth learning and understanding. People who study economics are more likely to develop their analytical and evaluative skills. Knowing economics can help people determine how to become wise consumers, how to allocate their income and where and when to invest their money. Taking up an economics major can make a person more likely a republican (McGeehan, 2010). However, Kwak (2010) stated that economics tends to give people reflexive pro-free market, anti-government positions—positions that are not held by people with a deeper exposure to economic thinking. Reading newspapers aren’t enough to only understand government finances. It is somewhat enlightening that one must come to college and learn that free markets lead to maximum societal welfare and taxes impose a deadweight loss on society. That is why it is really important that a person must know more about economics. On the other hand, Stiglitz argues in freefall that understanding economics is crucial to understanding why free markets often lead to suboptimal outcomes. The problem is not knowledge per se; it is about a little bit of knowledge (cited in Kwak, 2010).
Reasons why People are Oblivious about Economics Ignorance means lack of knowledge or education. It is one of the primary reasons why people are oblivious about economics. According to Thompson (1997), the lack of concern about being unaware of what it is that they don’t know, is what he identified as ignorance squared. However, Hausman (1989) stated that the usual methodological question in economics is ‘how can one tell whether a particular bit of economics is a good science?’ herein is pursued as somewhat different sociological question which is not how to come to know which one does not know, the form of ignorance (Thompson, 1997). Moreover, Thompson (1997) defined ignorance as lacking of knowledge or information as to a particular subject or fact. The term is not meant in a derogatory manner, but rather, is normally ascertained as the starting point in the quest for knowledge. Economic theories provide a formal expression of a person’s perception of reality and all knowledge is produced through social interactions (Berger and Luckman, 1967; Bloor, 1976). Ignorance is not imply merely a lack of knowledge, but also the possibility that its antonym is being produced. To supplement this assertion, it is argued that neoclassical economists, as traditional intellectuals, cultivate the social production of ignorance in the struggle for ideas. This is done through narrow pedagogy, delineation of research parameters, and by constraining the production and presentation of non-neoclassical knowledge (Thompson, 1997). A taxonomy of ignorance provided by Smithson (1993) suggests a variety of forms: 1. All the things of which people are aware they do not know (the most recognized form of ignorance); 2. All the things people think they know but do not (ignorance based on error); 3. All the things of which people are not aware that, in fact, they do know (intuition); 4. All the things people are not supposed to know but could find helpful (taboo); 5. All the things too painful to know (psychological suppression of memory); and 6. All the things, of which people are not aware that they do not know (ignorance-squared).