In our day-to-day lifestyle, we seldom ponder about our interactions and their implications. A simple transaction between a seller and a buyer has significant consequences hitherto unknown to us.
The economy is a subject that analyses, summarizes, and explains the propagation of such actions’ consequences. And recognizing such implications can truly enhance lives while also allowing better financial decisions.
Economics is a study that endeavors to resolve the basic economic questions:
- What to produce?
- How to produce?
- For whom to produce?
The knowledge of economics has limitless practicality because this entire field grows up on the behaviors and abstraction of transactions and interactions.
What to Produce
This question highlights the deciphering importance between actions. Some entities are necessary for survival, while others are luxurious and are a source of human desire.
Necessity and luxurious goods are subjective, but the fundamentals remain concrete. Food, cloth, shelter, medicine are necessities for any human.
Economics allows the human brain to truly decipher in-depth the complications of the duality between necessity and luxury. A car is a luxury to many but is a necessity to a high-ranking official.
Thereby, the intricate knowledge of dissociation makes the reality much clearer and enables one to judge the likely outcome of a particular transaction, making the future more predictable, arming the person in the battle of life.
When to Produce
Although entrepreneurs generally ask these questions, the integration of such questions propagates to an average human being’s daily life. This question opens one up to the timing factor of decision-making. The ‘when’ component allows one to encompass any scenario indeed and act accordingly. For example: during times of economic depression, people stack food and medicine while relying less on clothing; this shows that the period plays a significant role in our lives, and through this knowledge, practicality comes more naturally.
For Whom to Produce
The third and final question portrays the people whom one considers essential. Therefore, the actions undertaken by a human being is being motivated by external factors. Such as family, and this implication seeps into every aspect of life.
Thereby, it is clear that economics takes in many factors surrounding human lives and studies them to provide the most optimum course of action.
And, the knowledge is not bound to self-application. The macroeconomics study allows a conscientious citizen to analyze the condition of a country’s economy and prepare for any predictable calamity ahead. Such a criticizing behavior may be there while the Govt undertakes the policies and making the final policy much more effective for the people and the economy. Knowledge in such a field can provide the upper hand in terms of job security and comprehend the cumulative effect to occur if the current course of action is maintained. Thereby, it is, without a doubt, a shield of life. Protection that allows the shelter to the one who recognizes its usage.
Economics is the study of us. The entire world around us is standing on the abstraction of the human mind. Economics is the rationale of the conception. Thereby, it is a subject of study not to be constrained by academic tags and banners. The economy consists of us. We are the working gears of the entire operation. Therefore, it shall be studying ourselves only.
The quote “know thyself” beams brightly in this context. The quicker we realize facts about ourselves, the better we perform in the world. Thus, economics is for everyone and you are recommended to attend economics tuition programmes to learn more. It is the knowledge of life so direly required to quench the unknown thirst of society.