Importance of Economics in Our Daily Life

20 Jun 2019 81891 share it:

When someone mentions economics as a subject, the most common thing that comes to every student's mind is that it is a dull and boring subject.

Agree or not?

From small applications in household budgeting to changing the faith of a country’s standard of living, the study of economics holds great importance in every field of life. We all are familiar with the concepts of primary, secondary, and tertiary sectors of economics and how they are important but did you know that there are a lot of other concepts that can help in many other aspects. Would you believe if someone told you that studying economics can actually help in reducing poverty? Well, if your answer is no, then this blog will open up a whole new world of various economics applications that are a game-changer.

Many senior school students don't opt for this subject because they think it is very difficult to understand its various concepts. Even if they choose the field, they doze off half the time during the classes. But, according to the economics assignment help experts, if you study the subject with more interest and concentration, then you will come to know that it is one of the most applied subjects in real life. In fact, many of our day-to-day activities involve the use of the major concepts, including production, distribution, and consumption, which are very helpful in making certain decisions in our daily life.

OK! Let us look at some of the major concepts that economics has taught us, which are important in our daily lives. (You can also ask for cheapest assignment help in UK. )

What Is the Importance of Economics in Daily Life?

The following are some of the major concepts that will help you understand the role of economics in our day to day life. So, read it carefully.

Rational Behavior

The first and foremost lesson that economics teaches us is the optimum utilization of limited resources, and for this, we need to adopt the rational approach. When you buy something and pay for it, you analyze the real value of that product and know whether it is worth spending that much money or not. In short, it guides us about the scarcity of resources and the alternative use of them. The reasonable mind is the proof of your education as it directs you to make the right decisions by reviewing all the available possibilities.

Opportunity Cost

When we spend money on a particular product, we let go of the other alternatives that we could have purchased with the same amount; this loss is referred to as the opportunity cost. It is a normal situation that most people face in their life where they have to compare the value of two things and the gain that can be received from them in the future. They compare the worth of the options available and make their choice. This examination quality is a significant lesson in economics.

Investment Decisions

We all intend to invest in better and higher returns in the future. Some may be profitable, while some may result in a loss, but if you can evaluate the options available and the risk involved in each of them, you can reduce the chances of huge loss. This knowledge of evaluation can be gained by the study of economics. You would be able to examine the different choices whether you want to invest your money in a fixed deposit, lend someone on a high-interest rate, buy gold or land, etc., and simultaneously the risk involved in them.

Social-Economic Issues

Another important concept that economics makes us aware of is the social-economic issues that we witness in everyday life. It educates us about unemployment, poverty, the gross domestic product of a country, inequality, low economic growth, and how to overcome these challenges. We think of society as a whole and work towards the betterment of it.

Diminishing Returns

When the satisfaction gained from the consumption of a product is lower than the amount of energy spent on it, it is called diminishing returns. Same way, while buying something, you evaluate the utility derived from it with each unit and the cost you are paying for it. In the beginning, the benefits are higher than the value, but gradually it decreases with continuous consumption. This law is very useful in our daily life.

Forecast & Planning

Although no one can predict the exact future, anticipating the possibilities, and preparing for it can be learned through the study of economics. Economists can speculate the future inflation or deflation a country may face and plan the finances accordingly. It also guides you to speculate on the stock market and the uncertainty involved.

Inflation

During inflation, the supply of money increases in the economy, and the value of money decreases. People have money to spend or get loans at low interest from banks, and eventually, demand rises for products. Many people make the wrong decisions during this time and spend or invest money in an unsuitable direction. Economics helps you understand the concept of inflation better, and you can take accurate measures that can be beneficial for you in the long-term.

These were just a few examples to show you the importance of economics in general life. There are other theories like the role of government intervention in the economy, global economy, behavioral economy, macroeconomics, etc., which are part of the subject and are essential in practical life. We hope that the subject will interest you more now as you would start witnessing its applications in your life.

Still, some students do not take an interest in studying economics. So, if you too are among them, then continue reading the succeeding section.

Another type of economics that may be useful in our day-to-day life is home economics, In the next section let’s find out how.

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What is the importance of home economics? | Are Economics and Home Economics Connected?

Economics is the study of how to manage money and the financial status of a country, state, organization, or individual. Home economics, on the other hand, is the study of managing a household and different skills that may come in handy while handling a house. Home economics is a course that is majorly related to learning useful skills such as cooking, sewing, designing, health, and hygiene-related skills, child development, etc. However, one of the most important aspects of home economics is budgeting and money management. Running a household is no less than running a country in itself. And especially if a person is responsible for handling all the money and earnings in the household, he has to understand the concepts of proper budgeting to keep the household running.

Learning how to invest, how to spend, and how to save money is one of the most important aspects of home economics, which enables a person to manage the financial security of a house. Usually, the main audience for home economics is women as they are the ones involved in everyday shopping and other money-related tasks. Women are expected to handle all the income of the house and decide where to invest, where to spend, and where to save money. Home economics might not be very useful if you are looking for a career in economics and finance, but you can stay assured that the skills you learn in this course will always stay relevant and useful for you in your everyday life.

Now that your familiar with economics’ importance for an individual, let us expand our thinking and try to find out its significance for a country as a whole.

What is the importance of economics in our country?

The financial well being and stability of a country depends on how the economy of the country works. As you already know, economics is the study of production, consumption, and transfer of wealth from one stage to another stage, which suggests that every transaction that takes place in a country related to goods and taxes contributes to the economy of that country. A few of the significant factors which make the study of economics important from the perspective of a country are -

Understanding The distribution and usability of resources

Resources are one of the most important role players in any country. The better they are able to use their resource, the more prosperous they can become. To understand how to apply resources in the correct direction, which areas require more resources, which have abundance etc., one needs to have command of economic factors affecting the area.

To analyze the financially stronger and weaker points of a country

The gross domestic product GDP is one of the most commonly used factors to assess the financial condition of a country. The GDP, however, depends on various economic factors, including the income of the country, tax revenue, unemployment, poverty, etc. If a country is able to understand why their GDP is low or high, it can easily gain information on the stronger and weaker points of their country and work for the betterment.

Opening new opportunities in international Markets

When a country has knowledge about its basic economics, they can compete in the world market without facing much of the problems. It's like if you understand the chain of production in and out, you can gain maximum profit in the market, and the study of economics helps you in doing just that. The study of economics is important for a country as it can really help it to know how to enter the world market without getting crushed by the competition.

Other than these factors, the study of economics can empower a country to fight against some of the major financial issues of the country, such as poverty, unemployment, poor public services, etc.

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Why Should Students Study Economics? Benefits Listed

The following are some of the reasons for studying economics mentioned by the economics assignment help experts. After reading them, you can get the answer to your query, "Why to study economics?

Helps in Understanding Economic Process

Studying this subject helps students get knowledge of how the complex forces function within the economic structures. Through this subject, one can easily understand the relationship between labor and management, producer, and consumer. Overall, by studying economics, students can easily gain a better understanding of the entire economic system, which further helps them in their future.

Helps in Countering Poverty

Nowadays, satisfying human needs with a scarcity of resources is way difficult. All this is happening due to improper knowledge of the economics discipline, lack of technology, poor standard of living, etc. So, to improve all this situation, students need to gain more knowledge of the subject, then only they will be able to eradicate poverty in the nation and raise the living standard.

Helps in Formulating Laws

If you have a dream of becoming a legislator and parliamentarian, then gaining knowledge of economics is essential. When you master this discipline, you will be able to formulate laws perfectly. That is why the economics assignment help experts always suggest studying this subject with 100% concentration and dedication.

Helps in Increasing National Wealth

When you study economics, you can easily discover new factors that can contribute to the rise in national income. Nowadays, the modern government is actively engaged in economic planning. This is how they reduce poverty by increasing wealth and national income. But, all this is not at all possible without a better knowledge of the economic discipline.

Helps in Formulating the Budget

Most of the students who specialize in economics have a dream of becoming finance minister. For that, studying economics is crucial as the subject helps them form the development budget; therefore, it removes unemployment. So, if you too have such a dream of becoming a finance minister or any successful person, then you should focus more on studying economics.

In, fact according to our experts of Assignment Prime, the major 3 reasons that students opt for a career are -

1. Inhibit a Set Of Useful Skills- The study of economics requires you to develop critical and analytical skills, which are not so common but are required in many different fields. Skills such as -

• Critical Thinking- Critical thinking is not just the ability to define and apply to reason; it's beyond that. While working with numbers and situations, economists make a lot of hypotheses, and based on those hypotheses; they present their deductions. But to create a hypothesis, one needs to analyze the currently available factors with the information, which takes a lot of practical knowledge and practice. If you pursue a career in economics, you will develop critical thinking as it is a necessity of the course.

• Research Skills - while making a report or prediction on the economy, one needs to have an ample amount of quality data and statistics which can only be obtained if you know how to look for them and thus you ought to develop killer research skills which can help you not only in economics but in different fields of life as well.

• Commercial And Cultural Awareness - With all the knowledge about different market trends and changes in the economy, you develop a habit of staying up-to-date with all the commercial reforms and cultural changes, which gives you an edge over your competitors and colleagues. Also, this is a skill which can be really useful in your daily life.

• Data Analysis - Analyzing various scenarios to deduce its outcome. Running calculation Inhibit a set of useful skills - s on existing statistics and analyzing economic data to help in deducing different events such as a recession or financial outbreak is the key task that an economist needs to carry out, which requires tremendous efforts and data analysis skills. Data analysis skills are not common but are highly demanded in many jobs, so if you have a degree in economics, you have proven data analysis skills.

• Time Management- “Time is money,” If you are an economist, you understand the importance of time and the power it holds. Many people struggle their entire life just because they don’t know how to manage time. Well, a career in economics teaches you just that. How to manage tough times, recession, everything can be learned while pursuing a career in economics and everyone knows how precious the skill of time management is in our daily lives.

The above-mentioned skills open up a lot of opportunities for you as well as make you a better and more intelligent human being. Other than these, skills like Teamwork, Problem-solving, Computing, Communication, Numeracy, etc., are also developed by students who are studying economics.

2. Open Up Incredible Career Opportunities – Well, the financial sector is considered to be the backbone of a country, and if you have a career in one such sector, you don’t need anything else. The study of the economy helps you in understanding everything related to finances, markets, and human investment tendencies. There are a lot of public and private sectors in which you can easily land a job role just by having an economics-based educational background. Some of the most anticipated career options from the field of economics as well as relative fields are -

• Economic Consultant - with all the knowledge you gain from your course, you can easily become an economic consultant in a reputed firm. The job of an economic consultant is to help organizations improve their financial status by suggesting vital changes in their policies as well as providing them with guidance on upcoming financial changes and how to tackle them.
• Chartered Accountant - If you develop skills related to money management and the economy, you can easily go into the field of accounts and taxes. Chartered accountants are some of the most intelligent and highly paid individuals who can help organizations, firms, and individuals in managing their taxes, accounts, and secure their assets during tough times of recession.
• Credit Analyst - The ability to analyze a person’s loan repaying capacity just by looking at their previous tenures is nothing less than magic. A credit analyst is a job role that is not directly related to economics but can use skills that you develop while studying economics. It is one of the high paying and respectable job that you can easily get if you hold graduation in economics.
• Data Scientist - yes, you read that write, not every scientist has to deal with chemical compounds, some deal with complex numbers and facts. A data scientist is a job role that requires analytical and critical thinking with great calculations and deduction techniques. The skills mentioned can clearly be confused with the skill sets of an economics student. That is because both of them require the analysis of data to predict future outcomes. If you want to escape the route of a career purely in finance, a data scientist is a good option for you.

3. Get a New Perspective On How The World Functions- You go to a market, pay the shopkeeper an amount, and get your product. But is this the only operation you did? Or is there a chain of operations that contributed to you gaining access to your product and shopkeeper gaining access to your capital? When you study economics, you get to see things that nobody else imagines. Studying economics enables you to understand the market chain and the ways people make money. It can also help you in analyzing the credit and debit situations and how public loans actually function. This knowledge can come in extremely handy if you own a business or have a mindset of starting one. A normal human sees what is being shown; an economist sees what is hidden behind.

Economics is not at all a bundle of principles and theories. It is all about implementing practical concepts in the real world. Especially, when it comes to implementing the economics concepts in assignment writing, students face a lot of troubles. Want to know what problems students face?

Continue reading…

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What Problems Do Students Face While Writing Economics Assignment?

We all know that economics is known as the queen of social science, but it is a quite confusing, broad, and complicated subject. That is why college and university students generally face a lot of difficulties when they are asked to prepare an economics assignment. This makes them turn to the best economics assignment help providers.

They face a lot of problems in drawing accurate graphs of economics. They do not know how to make proper charts and prefer consulting experts.

One of the most difficult parts of writing economics assignments is showing how various economic agents interact. This is where students get stuck.

Economics subject involves more theories rather than numerical. So, those students who do not have a good grasping power find it difficult to compose a theoretical assignment.

Another biggest difficulty that students face while writing an economics assignment is not being able to keep track of a lot of agents.

Finally, coming to the last yet the basic problem faced by students that is calculation. Yes, not everyone has a good understanding of mathematics concepts, and that’s why they come up with the wrong output and lose their grades.

So, these are some of the difficulties that students generally face while working on their economics assignment. If these are your problems too and you are looking for the right solution, then look nowhere else and visit Assignments Prime now. We are assisting thousands of students for a long and will surely help you by providing the best economics assignment writing help at very affordable prices.

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