Economics concepts are applicable in all life aspects. People use economic principles and ideas to make decisions. In management, financial theories are used to make rational decisions to help with the managing of limited resources. The knowledge acquired in class applies to my career life and goals.
My career goals are to become a business person by operating an online business. I have a goal to begin my own business and make it profitable. Economic principles will influence my decision-making process based on the decision made in the industry. Some key economics concepts to apply in my life goals include marginal policy, products are scarce have utility and that buyers make trade-offs. These principles will inform my decision when making a business decision making the process. Businesses are made to earn profits made by providing goods and services. Thus the first thing is that I must understand the principle of utility. The concepts help create the value of a product. Customers pay for the amount that is attached to a product.
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Economic products are scarce. Therefore, a product does not have any utility until it is limited. Thus in my business goals in the future, I must offer a service or a scarce good. In return, consumers must make decisions when purchasing services or products. The customers’ decisions will be based on an economic tradeoff between the costs and benefits attached to my products. The value of a product is created with regards to margins meaning that the value must be higher than the costs of offering the product. If the product does not provide profit margins for the seller, then it is making loses, and it is best not offered.
In a business career path, all economics concepts are applicable. People or buyers respond to incentives. Business people know that consumers are likely to react to stimuli that why people respond to discounts. As a business person, the concept of motivating the buyer through incentives is an essential trick to running a business. The idea of stimuli is used to create the value of a product either in terms of quality of the product or through the prices because customers are known to be responsive to such incentives.
The concept of opportunity cost which indicated that all resources are limited, and it is impossible to have all the goods at once. Limited capital resources require one to decide which resources are the most important to them, and they will make a decision based on the importance of the product. For example, if at this point, I am presented with a job while I am working on my education, I would first choose the school because, at this time, knowledge will be most beneficial.
Cost-benefit analysis, utility, and scarcity are some of the concepts that I believe are applicable in everyday life. The cost-benefit review is one of the economic concepts that I consider an essential take away from this course. Cost-benefit analysis is the systematic approach to estimating the weaknesses and strengths of alternatives. Cost-benefit review is a tool for decision making, which I can apply in making all life decision by assessing the costs and benefits that result from an action.
For example, I can use the cost-benefit approach to decide on whether to continue with my education or not. In the process, I will evaluate the cost of maintaining with training, including time and capital resources versus the outcome, which is knowledge and educational certificates that I can use to acquire jobs. If the costs are higher than the benefits that will be reaped, it is better not do go on with education. However, if the benefits of education are much higher than the costs, it is better to pay the expenses. Cost-benefit analysis is applicable in all the decisions made because despite other choices not having any monetary expenses, there are costs incurred such as time and strength. The outcomes may also not be monetary; in some cases, the benefits are as simple as satisfaction. However, it all depends on how the person making the decisions attach the value to costs and benefits.
To grow and generate these ideas, I need to work with other people to know how to apply these economic concepts reinforcing economic and career goals that require the ability to apply the economic knowledge learned. Working with other people to develop these ideas is an important aspect as it becomes easy to share with others and learn from them. Collaborating with other students is like using scare resources to acquire benefits which in this case is the knowledge
Collaboration with other students, teachers and external partners are some of the resources I will collaborate with as I continue with my education to learn more. These parties will help me achieve my career goals. Working with others is easy as there is more to learn from each party and using that knowledge will be beneficial to me. In addition, capital resources like books will provide supporting materials to the knowledge I acquire in the learning process.
Each of these concepts is applicable in my life, and many other thoughts learned in class. All economic principles and concepts learned in class are appropriate to my career goals of becoming a businessman. The knowledge acquired is vital in understanding the decision making processes involved in the production and consumption of industrial products.
