What is the first impression that hits your mind, when you hear the word ‘Economics’?
Is it Money, or Charts and statistics, or is it to ‘make decision’?
Let us begin with an example;
Whose decision power you think, is worthy for your business to prosper ?
A 5 old year kid, having distractions and fantasies about his Batman toys? or A young 25 year old aspiring woman, working hard to get a promotion on the basis of her experience.
If you’re going with 5 year kid, he will probably bring your business to brink of closure by purchasing every batman toy in world. Something different goes for 25 year old young aspiring woman, it depends on her decisions whether business will earn more profit or it will face wrath of whatever comes next. But the chances of facing the wrath are very less compared to 5 year old as decision king.
“Decision is primary; wealth, charts et al. depends on the decision.”
Is economics related to business decision only ?
The simple answer is No. Your decision to spend money on a movie ticket, will surely hurt your pocket, but what you’re getting in return is entertainment, time with friends, leisure and a nice break to get back to work interestingly. The same money will also be contribution to cinema industry.
Your vote for a particular party in general election decides many things. New government education policy, building new roads that in-turn save your car tyres from early wear and tear.
What remains AGENDA of taking decision ?
The answer is pretty simple again, we live in world of scarcity. Resources at our disposal are quite limited. Agenda of taking decision is to make appropriate CHOICE, the best choice to extract most value by spending minimest resources. This is core theme of the subject.
Concluding with famous economist Alfred Marshall definition of economics:
“a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing. Thus it is on one side a study of wealth; and on the other, and more important side, a part of the study of man.”