Hannah Thien

AP Microeconomics- Period 1
June 4, 2016
If you asked me nine months ago whether I was excited to take economics, you would
have gotten a very different answer than if you asked me that question today. Back in September,
not only did I have no intention of studying economics further, I found the idea of market
structures, the stock market, and national government utterly daunting. I was otherwise
politically inactive, and my biggest financial concern was how I was going to pay for gas that
week. Over the course of the last nine months however, all that has changed. My time spent in
microeconomics has not only helped me to understand a school of thinking that was previously
foreign to me, but more importantly, it has helped in my college decision.
My decision to go to Ithaca College next semester was greatly influenced by
microeconomics. I had auditioned at Ithaca College and Emerson College for a BFA in Acting
with the intention that I would go to either college as a performance major. I had briefly explored
Theatre Arts Management, which they also offer at Ithaca, but I was originally turned off by the
idea of having a good portion of my studies taken away from studying performance. Naturally
my parents were inclined for me to go into Theatre Arts Management as a platform for a more
reliable future. I approached the situation like an example of accounting cost and economic
costs:
Hannah cannot decide whether or not she should study Subject A or Subject B. She
spends $40,000 a year on college. Hannah values her time studying Subject A at $20,000, and her
time studying Subject B at $15,000. Studying Subject B would also cost Hannah an extra $5,000
in extraneous expenditures.
In this situation, Subject A was Acting, and Subject B was Theatre Arts Management. I
valued A more than I did B, and the $5,000 is meant to represent the chance to perform in
mainstage shows on campus that I would be forgoing as a Management major. I began to
calculate my accounting and economic costs.

SUBJECT A:

SUBJECT B:

Explicit Costs: $40,000

Explicit Costs: $40,000

Implicit Costs: $15,000

Implicit Costs: $20,000

+$5,000

Total Costs: $55,000

Total Costs: $65,000

It was clear to me what the better choice was: Subject A! I thought I was so smart, using
my then limited knowledge of economics to one-up my parents, although I know that wasnt
your intention in teaching us this stuff. I had it all figured out and I was good to go, but tragedy
struck (dun-dun-DUN!)
My prescreen for Ithaca was rejected. I was no longer eligible for a BFA in Acting, but I
was still eligible for the BS in Theatre Arts Management. Meanwhile I was still eligible for the
BFA in Acting at Emerson. I was torn; do I go to a school I know I love (Ithaca) and study
something I dont love (TAM), or go to a school I think I might love (Emerson) and study
something I do love (Acting). I decided I did not have enough information to make a rational
decision yet, so I waited. In the meantime I went to economics every day, and slowly learned
more and more about rational decision making. It was in that time that I heard two things said
that would have a large impact on my future decision:
1) Sometimes our emotions help us make rational decisions.
2) If you have ability to perform a task without extraneous costs, allocate your
resources elsewhere.
The first statement, which was the thesis of the book we read for our summer reading
assignment, really sank in around February of this year. The latter came up in a class discussion
in which Mr. Majewski made the point that I do not have to do anything to become an actress;
that is, I do not need any extra materials in order to be an actress except for myself. That got me
thinking; I have been able to perform without studying it exclusively for the past six years of my
life, what is keeping me from doing it in college?
Once February rolled around, the acceptance letters started rolling in. I was accepted to
both Emerson and Ithaca! I was ecstatic, not only because I had gotten into my two dream
schools, but because I felt I now had the rationale to make the right choice. I knew that even if I
had gotten into Emerson, I was looking forward to being at Ithaca more. The environment of the

college was more appealing to me. Now, when I analyze the problem I set up before, I know that
my gladness was telling me the rational decision was to enroll at Ithaca College.
Now that the whole process is done, I do not regret my decision to go to Ithaca for a
second. My decision back in February has given me more benefits than I could have imagined; I
have found an incredible roommate, I have already connected with my fellow TAM majors, and I
have already made friends that I know I will have for many many years.
Thank you for the last nine months. This class has more than prepared me for what I will
be studying in college. Microeconomics has given me the skills I need to make more rational
decisions for my future, and I am sure it will be greatly beneficial to me when I take Macro next
semester. Although I may not have been the most vocal, I learned a lot this year in your class and
I am very glad I took it.