A TSI Graphics Worth: Mankiw Economics 5e 6 PART IIntroduction figure 1-3 Percent Great word Korec Vietnam First oil price shock ar Second oil price shock 19001910192019301940195019601970198019902000 Year The Unemployment Rate in the U.S. Economy The unemployment rate the percentage of people in the labor force who do not have jobs. This figure shows that the economy always has some unemployment and that the amount fluctuates from year to year U.S. Bureau of the Census( Historical Statistics of the United States: Colonial Times to 1970)and U.S cment of Commerce 7-2 How Economists think often study politically char these issues with a scientist's objectivity Like any science, -termin ology, data, and a way of thinking-that can seem foreign and arcane to the layman. The best way to become familiar with these tools is to practice using them, and this book will afford you ample opportunity to do so. To make these tools less forbidding, however, let's discuss a few of them here Theory as Model Building Young children learn much about the world around them by playing with toy versions of real objects. For instance, they often put together models of cars, trains, or planes. These models are far from realistic, but the model-builder learns Fr,Nav9,200111:52User SONPR:Job EFF01417:6264_ch01:Pg 6:24479#/eps at 100% *24479* Fri, Nov 9, 2001 11:52 AM 1-2 How Economists Think Although economists often study politically charged issues, they try to address these issues with a scientist’s objectivity. Like any science, economics has its own set of tools—terminology, data, and a way of thinking—that can seem foreign and arcane to the layman.The best way to become familiar with these tools is to practice using them, and this book will afford you ample opportunity to do so.To make these tools less forbidding, however, let’s discuss a few of them here. Theory as Model Building Young children learn much about the world around them by playing with toy versions of real objects. For instance, they often put together models of cars, trains, or planes.These models are far from realistic, but the model-builder learns 6 | PART I Introduction figure 1-3 1900 25 20 15 10 5 0 Percent unemployed 1910 World War I Great Depression World War II Korean War Vietnam War First oil price shock Second oil price shock 1920 1930 1940 Year 1950 1960 1970 1980 1990 2000 The Unemployment Rate in the U.S. Economy The unemployment rate measures the percentage of people in the labor force who do not have jobs. This figure shows that the economy always has some unemployment and that the amount fluctuates from year to year. Source: U.S. Bureau of the Census (Historical Statistics of the United States: Colonial Times to 1970) and U.S. Department of Commerce