Applying Economic Concepts To My Life
The concepts of economics has been a daily part of my life. The concepts apply to my poor choices, when I make food, and when I have to make decisions. Many of these concepts apply to my life in many ways. Five economic concepts that apply to my life are opportunity cost, shortage and surplus, rational self-interest, substitution, and income.
The first economic concept that applies to my life is opportunity cost. I apply opportunity cost to my life when I have free time. I choose to hang out with my friends so my opportunity cost is doing homework early and losing sleep. Sometimes I end up playing the computer instead of choosing to do homework or studying my opportunity cost is sleep and failing grade. The bad decisions that causes opportunity cost. Opportunity cost has always applied to my life. The concept; opportunity cost, can also be applied to when I choose to eat out instead of making something at home to eat my opportunity cost is losing money. Another opportunity cost in my life is when I decide to sleep in instead of waking up early my opportunity cost could be exercising, eating breakfast, doing homework, doing laundry, and getting ready on time. I have lots of opportunity cost that is always regretful!
The next concept that applies to my life is shortage and surplus. When it comes to making food shortage and surplus plays a role. When I am hungry, I go make myself something to eat. I need to know how much to cook so that I am full and not have a surplus of food after I am full. I also have to cook enough so that there would not be a shortage and cause me to be unfull. For example, I plan to cook macaroni and cheese and I am really hungry so I need to think about what is my dema...
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...ubstitution most of the time when I go grocery shopping since many things keep getting more and more expensive.
The last concept is Income. When I make more money I tend to spend more because I have more and I spend less when I make less.
Not only does opportunity cost, shortage and surplus, rational self-interest, substitution, and income are used in economics, but it applies to economics and everyone's daily lives. It applies to the choices I make like choosing between homework and hanging out with friends I lose the value of doing homework and sleeping more hours which is my opportunity cost. When I cook meals i encounter a shortage or surplus depending on how much I cook. I use rational-self interest to help me decisions that will satisfy me at the end of buying something. I use substitution to help me save money. Income I spend according to how much I earn.
What is economics? On the basis of most college courses in economics, it would be most appropriate to say something about supply and demand, those familiar curves that mysteriously set the price of goods and services. Close in relation to this are the "marginal propensity to consume" and various graphs that demonstrate the relationship between savings and investment, as mediated by the prevailing interest rates, or price of money. Contemporary economists are also fascinated by "the multiplier effect," the fact that the "effective money supply" is always much larger than its foundation in reserves, such as gold. The answer, in other words, is always that money lies at the heart of economics. Value equals price; that is, the value of anything is determined by market conditions. In thi...
Common Sense Economics: What Everyone Should Know About Wealth and Prosperity, written by James Gwartney, Richard Stroup, Dwight Lee and Tawni Ferrarini, explains the foundation of economics and how it all works in all aspects of our lives from the role of the government trickling down to personal credit cards and savings. This book was written with clear language for the audience to understand and comprehend the large amount of information within its condensed size. The authors’ target audience for this book seemed to be for those individuals wanting to learn the mechanics of economy including economic growth and stability. Gwartney separates his book into four parts: Part I, Twelve Key Elements of Economics, Part II Seven Major Sources of Economic Progress, Part Three Economic Progress and the Role of Government, and Part IV Twelve Key Elements of Practical Personal Finance.
“Economics is the science which studies human behavior as a relationship between end and a scarce means which have alternative uses’ seems to capture the essence of Microeconomics, but does not convey much of the spirit of Macroeconomics.”
An example can be the new arrival of the iPhone 6. Strong performance out of the gate is not much of a surprise, given that the iPhone 6 broke preorder records for Apple, with more than 4 million preorders placed in under 24 hours (Makuch). Demand is higher for the next-generation iPhone than for the iPhone 5S and 5C in 2013 (Herbert). These kinds of materials effects our mindset from feeling our wants are our needs, and therefore effects the tier of psychological. These people’s lives are put to risk missing out on days to camp out for the new iPhone 6. Credit cards are also an affect to bring one more in debt, since they know that most of the things they want can’t be afforded. Credit cards crude in interest and take over when one can’t pay the money back. From falling into debt one’s esteem lowers because their survival is through credit
applies to human behavior, I believe human behavior is situation dependent and all three theoretical
It was only fourth grade, when I purchased my first flat screen TV. Impressive, right? Saving money is one of the smartest decisions I established as a kid; now that I have a job, the subsequent rewards are continuously multiplying. At only sixteen with my current hours and no direct bills, the money accumulated. Although, at this age there are many materialistic things I desire. Could you imagine a young teenager with spending power? Proudly, that is not me. From that first TV as a reward for saving, an exponential income did not affect my notion. Just recently I purchased a car all by myself, simply because I avail the power in saving money. This aspect is now part of my personality, and its reward will only progressively
Economics is the study of how best to allocate scarce resources throughout an entire market. Economics affect our lives on a daily basis, whether it is on a business level or a personal level.
In addition, money’s effect on an individual’s happiness will be examined, in particular the belief that more money will bring more happiness and how it is not as significant as individuals with less money being less happiness.
The study of economics is important to everyone. Financial decisions affect everyone in their day-to-day routines. Economics is the study of how society manages its scarce resources (Mankiw, 2012). Macroeconomics is the study of economy wide phenomena, including inflation, unemployment, Gross Domestic Product, and economic growth (Mankiw, 2012). Macroeconomics is important because, it is how all of us relate into markets and economies. Many news articles today are centered on the economy and current events. One of these articles lends itself to many economic principles and ideas. Even though there are many important topics not covered in the article, the article titled, "You Are What You Owe" in Time, encompassed many general economic principles as well as the many macroeconomics indices illustrated in the article.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
There are two reasons help us to answer this question. Firstly, as it mentioned above, economics could provide supports to help people make right decisions. Everyone have to make a considerable amount of decisions in life and work, no matter they are politicians or housewives. For example, a wise politician makes use of economics theory to make economic decisions in order to run the country well and bringing prosperities to people. A smart housewife knows that breads’ and vegetables’ prices are economical in the afternoon under economics’ guidance. Some common rules hide incredible economics theories people might never notice because it seems so simple in the normal life. If we known these theories, we can take advantages of it to make right decisions at vital moment. Secondly, economics, as one of the most important subjects in academic circle, playing a significant role and affecting many aspects of our life. Before I study economics, I found many strange things whereas I can not explain by using common sense. For example, why are diamonds so much more expensive than water even thought water has vital importance to human existence than diamonds? Why does government levy taxes on merchandises to increase citizens’ financial burden? Why does the fast food restaurant drink can be refilled for free? After I learned the marginal cost and
In today's world, economics associated disciplines are of fundamental significance and application and this has encouraged me to pursue a degree in Economics. Economics has an important relevance in all of our lives. As consumers we try to make the best of our limited incomes. As workers we take our place in the job market. As citizens of a country our lives are affected by the decisions of our government: decisions over taxes, decisions over spending on health and education, decisions on interest rates, decisions that affect unemployment, inflation and growth. As dwellers on the planet Earth we are affected by the economic decisions of each other: the air we breathe, the water we drink and the environment we leave for future generations are all affected by the economic decisions taken by the human race. It is these stimulating issues that excite me about economics. I enjoy studying Economics enormously and believe my passionate interest in economics is continually strengthened by my regular reading of 'The Economist'
Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.
Managerial economics fits into the topics discussed because this is an area that gives explanation on how resources such as money, technology, land, and labor. It looks on how all these resources should be allocated in a more efficient manner. By understanding managerial economics it is possible to make the right decision regarding all the above topics. The managers have the ability to apply managerial economics to make strategies and solve critical business problems (Rowe,
Money is essential for our everyday lives and people have to face choosing whether to save up or spend their money. Of course earning our money can difficult considering that it is a necessary asset that affects every aspect of our life. Every day we see people working hard to earn as much money as the can. However how they use using the all the money earned is a frequently debated topic have seen many people who earn money and can no restrict themselves from spending .They usually act like wild animals fighting for food and being separating from the delusions of business. People are usually confused and frustrated by the amount money the use in a week without knowing that their daily impulse buying objects have piled up. Although it can be very hard to control there are many easy steps to stay away y from spending and instead saying up. Setting a goal, recording the amount you spend and even lowering your expenses can be small steps that will lead to great success in saving for the future