Economics gives us the tools to answer those questions and help us make the best the decisions on behalf of the public. Of course, economics is not only the basis for judgments and decisions made by the Fed and other government agencies. It also underpins the countless decisions by consumers, businesses, and investors that drive economic activity.
The concepts you teach and apply in the classroom guide those decisions and even help explain human behavior outside of the workings of the economy. For example, to continue to grow and succeed, any business owner should understand the differences between fixed cost, variable cost, average cost, and marginal cost.