Kamilla Bolat | 10.02.2024
Things You Need to Know
If a person is going to choose a specialty in the field of economics, then in addition to the basic principles of economic literacy,market mechanism, behavioural economics and government economic policies,they should deepen their knowledge in this particular area. These concepts are essential for making informed decisions in consumption, investment, and entrepreneurship.
Firstly, you need to know what market mechanism is and how it works - to understand supply and demand concepts in order to estimate its impact on price changes. This will help us better understand market and intensive competition, anticipating price increases or decreases, which will allow us to make rational decisions in the current time. For instance, whether to buy or not to buy a particular product today. For example, suppose you're considering buying a new car. By understanding supply and demand, you can anticipate if a new model of car release will lead to a decrease in the price of the current model.
Secondly, knowing government economic policies and potential assistance availability is important for future entrepreneurs. This assumes being aware of specific activities and conditions of government support, referred to as government subsidies.Knowing this economic aspect and its policy provides future entrepreneurs with insights about resources available for business launch and growth, mitigating risks, fostering innovation, enhancing business competitiveness, local production development and the state's economic growth.
Thirdly, behavioural economics is another crucial direction of economics business mics. It is about understanding human behaviour, individual choices and the rationale behind it. Behavioral economics also incorporates sociology and psychology insights.In behavioral economics, the endowment effect shows that people often think things they own are more valuable than they really are.For example, in a study, people who got a mug for free thought it was worth more than those who didn't get one but could buy it if they wanted to.
To sum up, their article explained the importance of different economics aspects that are highly application in a contemporary environment.
Firstly, you need to know what market mechanism is and how it works - to understand supply and demand concepts in order to estimate its impact on price changes. This will help us better understand market and intensive competition, anticipating price increases or decreases, which will allow us to make rational decisions in the current time. For instance, whether to buy or not to buy a particular product today. For example, suppose you're considering buying a new car. By understanding supply and demand, you can anticipate if a new model of car release will lead to a decrease in the price of the current model.
Secondly, knowing government economic policies and potential assistance availability is important for future entrepreneurs. This assumes being aware of specific activities and conditions of government support, referred to as government subsidies.Knowing this economic aspect and its policy provides future entrepreneurs with insights about resources available for business launch and growth, mitigating risks, fostering innovation, enhancing business competitiveness, local production development and the state's economic growth.
Thirdly, behavioural economics is another crucial direction of economics business mics. It is about understanding human behaviour, individual choices and the rationale behind it. Behavioral economics also incorporates sociology and psychology insights.In behavioral economics, the endowment effect shows that people often think things they own are more valuable than they really are.For example, in a study, people who got a mug for free thought it was worth more than those who didn't get one but could buy it if they wanted to.
To sum up, their article explained the importance of different economics aspects that are highly application in a contemporary environment.
