Economics and our Lives
According to the Business Dictionary, economics attempts to explain how wealth is created and distributed in communities, how people allocate resources that are scarce and have many alternative uses, and other such matters that arise in dealing with human wants and their satisfaction. If we see the point, economics really has a lot of things to do with our lives. It affects us in many ways. If you are struggling to understand the purpose of economics in school, you should check out Advo education centre to understand the importance of excelling in this subject. In this article, we will explore how economics is involved in our daily lives.
Cynthia Clark will now tell us how economics affect our daily lives. Let us read about it below.
How Does Economics Affect Our Daily Lives?
Economics is a social science that deals with the life-cycle of goods and services. It is a study of how innovation and finance revolve around human needs and desires to provide products and services to the public. Understanding economics is critical to business success.
Supply and Cost
Economics has an enormous effect on the daily lives and wallets of all people, even if they aren’t actually involved in economic studies. The principles of supply and demand play out everyday for every person making purchasing decisions on goods and services, and in keeping or finding a job. Changes in circumstances or government mandates on any aspect of an industry creates a ripple effect of price changes through multiple industries to the end consumer. Read more here.
The supply and cost alone has already a tremendous effect on our lives. It’s almost every day that we buy and consume products and it is also almost every day that we think about cost and expenses. On the other hand, Tejvan Pettinger will tell us about the importance of economics in our daily lives.
Importance of economics in our daily lives
Economics affects our daily lives in both obvious ways and more subtle ways. From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by broader economic trends, such as inflation, interest rates and economic growth. Force we have little control over but can change our lives.
Economic choices – opportunity cost
We are constantly faced with choices. It may be a matter of limited time. For example, at the weekend:
- We could spend 8 hours working in a cafe at the Minimum Wage of £5.60
- Or we could spend 8 hours studying for our A – Levels.
- Alternatively, we could choose to spend 8 hours of leisure (sleeping in, Facebook e.t.c.)
Each choice has an opportunity cost. The opportunity cost of earning 8*£5.60 £44.80 is that we don’t have time to study. This could lead to poorer exam results, which could lead to lower future earning potential. Read more here.
It is really important that we have knowledge of economics especially in making our choices. We have to know how to weigh things better under the principles of economics. If we want to know more of the importance of economics in our daily life, then let us read an article the Assignment Prime which is found below.
Importance of Economics in Our Daily Life
When someone mentions economics as a subject, the most common assumption that comes to the mind of every student is that it is dull and boring. Many senior school students don’t opt for this subject because they think it is very difficult to understand its various concept. Even if they do choose the field, they doze off half the time during the classes. But, if you study it with more interest and concentration, you will notice that it is one of the most applied subjects in real life. In fact, many of our day-to-day activities involve the use of the major concepts including production, distribution, and consumption which are very helpful in taking certain decisions in our daily life.
Let us take a look at some of the major concepts that economics has taught us which are important in life: Read more here.
According to the article above, one important thing where we could apply economics is in our investment decisions. We all want to invest a lot of things, but through economics, we can determine if the investment would be proper and right. Economics really has something important to do with our lives. It helps you manage your properties and belongings and it helps you in a lot of other different aspects.