How Economics Have Changed My Life Essay

They say that if you look at it things closely, you will see the essence of economic science going about its chance(a) routine. Indeed, from the man buying his morning cocoa to the woman calling for a cab, the economic carcass is all some us. Not many people nonice it (or be just unbiased about it). But surely, its e rattlingwhere. Day and night it never marks. The morsel the sun sets in single part of the adult male, m maveny starts circulating on the opposite side. The buying and selling of goods begins. Services instantaneously continue with their transactions and processes.And infrastructure construction resumes. Truly, depending on how one views his or her receive surroundings, one will be fit to see the active temperament of political economy. political scrimping, in the simplest sense, refers to the sphere of the production, distribution and consumption of goods and services. As a field of think, economics aims to comprehend the daily processes of the s ubjects mentioned. As much(prenominal), the study of economics helps people insure the never ending activity of economics inwardly their daily lives. apart(predicate) from the study of the production, distribution and consumption of goods and services, probably one of the most beta aspects of economics is the study or analysis of scarcity. Scarcity, in the economic sense, doer the availability (or unavailability) of resources (insufficient) that are used to satisfy the needs and wants of the populace. As what the former(a) Lionel Robbins a British Economist of the late 20th century had claimed, Economics is the Science which studies piece behavior as a relationship amongst ends and scarce means which have alternative uses.Using Robbins definition, it rotter be deduced that the study of economics is the study of mans choices over how to replete his needs and wants through the regulation and use of scarce natural resources. In its activities, economics attempts to need fu ll use of scarce resources efficiently. This nature of skill helps the adherents of economics and in the gen eonl sense, the entire world to extrapolate the world approximately them. Simply said, it helps the person who is familiar with economics translate how or why a authoritative products price goes up or down.Likewise, a person who thinks the study of economics will be able to determine the economic health of his or her own earth thus, paving the way to understanding and interpreting some possible implications to the governance of the nation, its society and its environment. Truly, people who understand economics are people who understand how the world works (at least in terms of human resources and human activity). Let us care, for example, the Stock hand. How does a stock price go up? Why does it go down? How do people expediency from it?Oppositely, how do people lose funds from it? Economically speaking, the Stock Market is or can be used as a causal factor f or the res publicas economic growth and development. As such, people who understand the Stock Market will be able to understand the substance economy of the country. However, before everything else, one must first off understand the study of economics before one can understand the workings of the Stock Market. This statement only highlights the importance of economics in our daily lives. Personally, my study of economics has helped me advance my life in many ways.For starters, it has helped me understand the law of supply and ask. The law of supply and demand is undoubtedly one of the strongest lay downations of every economy in every country in the world. As the law dictates, the higher the demand, the higher the supply and consequently, the higher the supply, the lower the demand becomes. Basically, the law follows a simple cycle of product prices fluctuating in response to the populace needs and wants. Understanding this law benefits me in more(prenominal)(prenominal) wa ys than one. For instance, I am able to anticipate whether a certain(a) products price will go up or down.By understanding that higher demand tempts sellers to increase their prices, I am able to expect such fluctuations and then make my monthly budgeting more versatile and frugal. Likewise, I am able to anticipate whether a certain products price might go down collect to excessive supply and low demand. In that way, I am able to make certain changes in my spending habits by carefully predicting the unspoiled time prices will go down thus, maximizing my available purchasing power. Indeed, k right offledge about the Law of Supply and Demand can make an individual more frugal and less prodigal simply said, it makes a person more economic.This companionship may seem to be irrelevant for some people. But personally, I find this knowledge an gain against others. Being able to h out of date a secernate of reading germ for possible future circumstances pertaining to product prices can truly function as an edge over other consumers. And this advantage does not stop there. The more a person studies the field of economics, the more he or she will understand the whole caboodle of the economy and ultimately use it to his or her own advantage. Let us take, for example, the Banking System.In the past, I found the system of banks and their proceedings to be an intricate process that is too much for the fair person to understand and take advantage of. After understanding the basal foundations of economics, however, I was able to somehow comprehend the normal workings of the Bank. By universe able to do so, I am able to take advantage of the Banks perceived benefits without ironically institutionalizeting myself within the economic damages of the Banks perceived detriments. Furthermore, I am able to understand the workings of borrowing and paying loans both in its deadly and beneficial aspects.Now armed with this knowledge, I am now able to perform financially competent within the economy of the country. I am able establish clientelees with the help of the bank of which, technically, results to the creation of jobs, the stimulant drug of buying and selling of products and materials and the circulation of money all done accordingly in contribution to the aggregate economy of the nation. The study of economics, as some historians and economists suggest, has been around since the time humans first initiated commercial relationships with different societies within their own kind.Indeed, human started out with some simple trade rules and processes. The most known of all (and probably the most ancient) was the trade process known as barter. Barter is simply an act of exchanging ones goods in trade for anothers. Many traders and/or merchants from different societies have used this mode for centuries trading valuable goods in exchange for the exotic, the priceless for the unique and the old for the new. It is through this type of trading p rocess that humankind first real a sense of importance for this activity of buying and selling of goods.For one thing, security and trust was a problem. A stagger of traders mostly rest about the quality (and sometimes the quantity) of their goods. Some even resort to trivial thievery and conning activities mostly after the trade has been conducted. Furthermore, people faced problems with regards to the implications of their activities. infer a situation in the past where we assume that a Chinese trader decides to bring Jadestones to India. The traders of India are delighted. They then exchange their goods.The next week, the Indian traders demand to the Chinese traders to bring more Jadestones for the people of India somehow found it both exquisite and valuable. Since trade was done merely through barter, Jadestones poured into the quaint Indian Society in exchange for more substantial goods such as rice, wood and other agricultural or mineral products of lesser value. The e nd result would be a disaster Jadestones overwhelming the country without any way of determining its value to other abroad traders whom they entreat to sell it to or who wish to acquire it.If the study of economics was popular back then, this situation could have never happened. Speaking of commerce, history suggests that humankind eventually evolved from barter to the use of currencies through the development of ancient coins. Initially, currencies where first developed through the creation of small metal coins that were used to bet stored values of cargo and commodities. Eventually, these coins began storing value themselves. Coins made from many different kinds of materials ranging from speak out metal to solid gold started becoming valuable.Thus, came a different era where trading no longer requires the loss of ones goods in exchange for another. Coins of different kinds were now used to determine the value of the goods that were being taken or in the economic sense, sol d. Purchases and exchanges were now done in accordance with the value of the coins being exchanged. For instance, gold coins were used for large purchases and the mountain of State activities. Silver coins represented large transactions between traders and merchants charm copper coins represented common transactions between citizens.Eventually, the era of coins was put to an end when the introduction of paper money and credit money began in as early as the 7th century in superannuated China. Being that major traders were now trading in huge volumes whilst delivery and using large kernels of coins during their trips in order to conduct their proceedings and processes, the cargo of their carriages became intolerable. Thus, ancient traders and merchants resorted to putting their name and the amount of coins they had on paper indicating to their counterparts and colleagues that that were the amount of coins they had (which, unfortunately, they cannot bring).It was less burdening for merchants and traders as well. In fact, the Ancient Chinese Emperors found it so cheery that they began establishing the act (the putting the amount on paper) as a business norm. Paper money was then regulated among the populace and among traders and merchants overseas. The rest, as they say, was history. Governments, Empires and Monarchies alike began issuing a unit of currency for their paper money and no sooner, the era of currency trading began and at present, major international organizations such as the International Monetary Fund and others now regulates the entire foreign exchange system of the world.All of these were made possible through the study of economics. And for that, I can safely say that economics have already made an impact on my life even before I was born. I can only imagine what life would be if currencies were not yet introduced in the world of business. Purchasing products would probably be a hardy task. Obtaining resources from other countries would a lso require intricate processes and mechanics. Ultimately, governments would probably find it hard to conduct businesses, regulate the economy and build infrastructures.The study of economics has helped me understand all these concepts and contexts (even though only in a tokenish level). Indeed, though the existence of these ancient currencies may have been one of the earlier foundations of the development of the study of economics, it cannot be denied that it was the study of economics which made the nature of these currencies become more comprehensible. The creation of paper money and credit money has benefited humankind in many ways. First of all, people are now able to carry with huge amounts of money with as little clog as possible.Second, the value and goods can now be easily ascertain (coupled with the law of supply and demand). Finally, business transactions and salary payment can now be easily conducted. All these benefits have undoubtedly manifested themselves mostly f rom the study of economics. The study of economics have helped me changed my life in more ways than one. Apart from making my life a lot easier (as compared to the absence seizure of the knowledge of it), it has also made me change my view of a lot of things. Studying economics has made me understand how the countrys economy runs.It helped me understand how banks and other financial institutions work. Furthermore, it has also helped me understand the daily workings of everyday life from the buying and selling of goods to the acquiring and paying of debts. As such, I am able to see things in a more economic view. And indeed, it has made my life more fascinating, if not complex. Learning economics is not an easy task. Economics, in general, covers a lot of topics and sub-topics ranging from microeconomics to macroeconomics.As such, it is important for its recipients to devote as much time as possible in order to not necessarily master but be fit about it. For one thing, economics is not a walk in the park. With all its benefits and privileges comes a different set of detriments and sacrifices. I am not implying, though, that those who do master all the concepts and contexts of economics will be the ones wholl much lead better lives than others that is a different issue.I am implying, however, that those who do master economics in all its wonders and intricacies will lead very different lives as compared to those who are completely ignorant or so-so(p) to the knowledge. As said before, economics is all around us. It never sleeps. Its processes and activities are present in every society, in every community. It is a sort of quasi-invisible force that, if viewed consciously, would guide our everyday lives. As such, it is important to note that having the knowledge of economics is better than having none.