The Social Network

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Today’s students have grown up in a world where connectedness and social media are the norm, but most will not be familiar with the background of how the social media giant “Facebook” was created. Use this film to introduce the ideas of technological change and entrepreneurial ability, while highlighting the difference between someone with an innovative idea versus the risk-assuming/management role of the entrepreneur. Students will also be primed for a discussion about the differences between total revenue and profit as well as the role of investors for start-up companies. Additionally, the recent real life tax-evasive maneuver of Facebook co-founder Eduardo Saverin, who renounced his U.S. citizenship this past year, presents a great opportunity to discuss tax laws and unintended consequences.

Content derived from AEA 2013 Poster Session: "Staying Relevant: The Best Media for Teaching and Learning Economics in the Last Five Years," by G. Dirk Mateer and Kim Holder.