Economics in my life?

Question

how does economics affect your daily life?

Answer 1

It helps me become a wiser consumer. For instance, I would be extra careful when filling up surveys, knowing that they are tools which firms use to extract information my consumption preference, and subsequently exploit my consumer surplus; it also helps me in choosing the best alternative by weighing the costs and benefits; most essentially, it helps me understand that individuals always seek to maximise their own utility (selfish nature of human), so as to be more effectively deduce what the competitors are thinking, and finally derive to a nash equilibrium.

Answer 2

An appreciation of macro-economics helps you understand the issues that are commonly discussed and debated between candidates for state and federal offices.  Its also good for helping you spot trends in the economy that affect you, like understanding that oil is a scarce resource and will eventually be priced at a level that makes current consumption patterns unaffordable.   so if you were going to invest for the long run, that would make you more interested in alternative energy stocks, but in the short run if prices seem relatively low, you might have gone for traditional energy stocks

Micro-economics helps you understand the marketplace.  why prices change the way they do, how substitution works, what the elasticity of demand with respect to price means in terms of how you might price things you are selling.

You work outside a football stadium selling hats and t-shirts, and on average you sell half your inventory before the game and half after the game.  you might listen to the radio and find out that the game is not going well for the home team.  you would begin to mark down the prices of your home team products.   On the other hand, if the game is going great, and your home team is poised to upset a stronger arch rival team, you would not discount the items, because you know that the pride of the fans as they leave the stadium translates to a highly inelastic demand with respect to price.

So you would make more money by understanding elasticity of demand, a micro-economics topic

Answer 3

GIVING A MENTAL ALERTNESS