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How Does Economics Apply In Our Daily Lives?

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Amelie Gruber

Did you know that your economics assignments help you make better decisions in your everyday life? Economics isn’t a subject that is only meant for government officials or students who love statistics. It has a significant role to play in the decisions we make every day. Whether it is your father shopping at the grocery store or your friends planning to spend their summer vacations, economics makes the tasks 10X easier.

Sounds unbelievable? Let’s check out the top four scenarios where economics is applied in our daily lives.

  1. Price tags

At times, the price tag changes for certain goods without any change in their quantities. Now, how much you buy after this change in price tag is also an economic issue. If you buy a product despite its difference in price, the product is known as inelastic. For example, the cost of gas often fluctuates. But people still buy gas. On the contrary, people don't buy lattes when the price is raised by 50 cents. Thus, coffee is elastic.  

  1. Household budgeting

‘Purchasing choices’ is one of the most popular topics for economics students. This economics assignment can help you make better purchasing decisions in the future. Economists categorise purchasing choices into three groups: luxury goods, normal goods and inferior goods. You can buy luxury goods after achieving a certain amount in your banks. Normal goods are purchased often as they are essential. The demand for inferior goods decreases as your income increases.

  1. Major life decisions

Many students type ‘do my assignment’ on Google when they have to work on assignments regarding economic reasoning. Before making any decision, we tend to weigh the pros against the cons first. Whether it is about choosing to have children or whom to marry, identifying the pros and cons can help you make life decisions easily. When one choice offers more utility or personal satisfaction than the alternative, a decision is made.

  1. Employment

Have you read the book ‘Principles of Economics’ by Gregory Mankiw? This book uses a graph to highlight how a person divides her time based on her desire for more luxury or goods? You will find this scenario amid various workplaces. For example, people often turn down high-paying jobs because they don’t want the 60-hour workweeks that come along with it. On the contrary, some people might even pick overtime shifts to earn some extra bucks on Christmas.

Hopefully, now you have realised the role of economics in our everyday lives. The basic principles of economics govern the way we work, buy things and make decisions. So, the next time your professors ask you to do my assignment, don’t frown. This subject can help you in the long run.

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Amelie Gruber
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