My View Of Economics

Introduction

When mentioning economics, people may have different opinions of it. Economics is a boring subject? Are there many complexed theories to understand? There may be some questions in people’s mind when they start to studying economics. When people approach new knowledge at the first time, they want to know, “what is it?”, “what benefit can I get from it?” Some people may think economics is about the market, money, products, customers and producers. If use these elements to define economics, it is too narrow. How to explain the definition of economics and how to apply economics to individual and social development are two main topics which should be discussed. This essay is about my view of economics from individual perspective.

It is important for people to study economics. It is impossible for every person to be an economist, but everyone could think as an economist. The reason why people should study economics is that they can have a deeper understanding of humans’ situation and behaviors. For example, I decide to stay at home rather than do exercise in gym. According to the principle of economics, the opportunity cost of staying at home is the benefit I would have from doing exercise in gym. As a student, I need to choose how much time I can spent on my units. If I think a unit is more important and may create more benefit for me, I will decide to spend one more hour studying it. In this case, I could use marginal analysis and make a right decision. Government policies must be made based on economics analysis. Economic policies impact on people’s daily life. In order to control market, the government will increase or decrease the prices of goods. I may use supply and demand curve diagram to analyze the situation, which means I can decide how to consume or how much money I can invest in some fields. Applying economics theories could help me avoid some risk and reduce lose in the market. In people’s daily life, people mostly play the role of customer and think from this