What economics is Essay
What economics is
What economics is and how you may use economics in your future career and/or your daily life?
After World War II, economy is increasingly becoming the focus of national competition in the world. Furthermore, economics as a new breach of human sciences is applied widely in human daily life as well. For example, almost everyone has to consider price, tax, money and welfare in real life. It can be seen from that economics play a significant role in human life. This essay will discuss what is economics and analyses how to use economics in my daily life from economics knowledge, economics logic skill and economic analysis skill three aspects.
Economics is a new subject in human sciences and the history of it is not as long as other subjects, so there are amount of different theories in this subject and different schools have different opinions about it, even the definition of economics. In Austrian school, the economist Mises (1998) defines that “Economics is the theory of all human action, the general science of the immutable categories of action and of their operation under all thinkable special conditions under which man acts.” While the economics Gans, King, Stonecash& Mankiw (2012, p3) think that “Economics is the study of how society manages its scarce resources.” Actually, there is no model answer of what is economics, people depends on their own experience can have diversity opinions about this question. In my view, economics is a subject which teach people how to thinking objectively and manage things more effectively. It focuses on macroscopic view and microcosmic view in real life.
Economics pervades every aspect of peoples’ life, so we can use it to change and improve ore life. Firstly, I can use Economics knowledge to make more profit. Economic theories are summarized by economists and it can show economics trend, thus people can follow these law of economics to deduce future economics trends. Follow these deductions, they can invest some businesses so that they will have considerable revenue from these businesses. For example, if i am able to forecast stocks, i will buy some stocks when the price is low and sell them at a high price. This will brings me a huge income. Moreover, economics knowledge will help me save money.
For instance, i can use demand and supply theory to guess when the goods price is low, thus i will save money comparing with other people. In addition, the people who is proficient in economics means it is easier to find a high-paid job than others, the reason why is most of high-paid jobs are nearly almost associate with business and these jobs need economics knowledge to management and control them, such as business manager, accountants, Stock managers and so on. After i graduate from university i can find these jobs. To sum up, economics knowledge not only helps me gaining and saving money, but also helps me gets more high-paid employments.
Secondly, i can use economics logic skill to identify the truth and false in real life and make decision more wisely and objectively. Marking is a significant element in economy, sometimes a excellent marking marketing tactics will help company have a good selling, so how to keep clear mind in the tempting marketing tactics is an important skill for people. Gans, King, Stonecash& Mankiw (2009, p3) indicate one principle of economics in their book, it is “people face trade-offs”. From this principle, we can know everything in the world is not free, everything we gain should be sacrificed. Thus when i buy goods, i will remind me this economic principle and convince myself do not be lied by marketing tactics and buy some unnecessary goods. Furthermore, if i want have my own businesses, i may need economics, because it will help me thinking more objectively and broadly so that i can make right decision in business.
For example, Gans, King, Stonecash& Mankiw (2009, p9) state another principle “rational people think at margin” in their book as well. This principle is necessary to chief who control the companies’ future, when they face several suddenly changes in business. In another word, company leader should change the plans, while the cost and value of projects change. This margin thinking is one of objective thinking skills. To sum up, i can use economic logic to make objective and wise decision in my business in my future and to be a rational consumer in real life.
Finally, i can use economic analysis skill to understand situations what i have. Specifically, situations divided two things, one is public policy. Every country have their own public economic policies, authorities will make different laws to regulate economy. For example, everyone should pay tax to government. But if you do not know the economics, you will not understand the tax law and tax standard or know how to make tax planning, then you may feel unhappy or angry with your government. Callahan (2004, p27) also argue this opinion, “Another benefit of an understanding of economics is that it is crucial to evaluating questions of public policy.” She points out we can judge salary or tax is fair or not through economics analysis. Personally it is significant to employee and I will analysis economics policy and according to these to make or change my economic plans in my life.
The other situation is society circumstance. Economic change will lead to a series of influence on peoples’ life. For instance, the rate of unemployment is an important data to employee and students who will graduate from university. If they understand the meaning hidden behind the data, they may try to do something to avoid suffering from this unemployment crisis. I will analysis the economic trend and change my plan as well. Only understanding a thing, you can accept it. Thus, i will always use economic analysis skill to understand situations what i have in the future.
In conclusion, economics is not only a subject of science, but also a regulating and controlling economy skill. It not only teaching people economic knowledge, but also cultivating peoples’ personal and cultural value. It is not a single discipline, it needs to combine other subjects to research and learning, such as philosophy, politics and so on. In the future, I will use economic knowledge to find a high paid job or invest projects and use economics logic skill to make sure i make right decisions and use economic analysis skill to understand and think situations what i have.
Callahan, G. (2004). Economics for real people (2nd ed). Auburn, Alabama: Ludwig von Mises Institute.
Gans, J., King, S., Stonecash, R., & Mankiw, N. G. (2012). Principles of economics (5th ed.). New South Wales, Australia: Cengage Learning.
Mises, L., v.(1998). Human Action: A Treatise on Economics. Retrieved from