ECF5953 Assignment 1
Semester 2 2014
Name: Wenwei Liu
Student ID: 25895605
Unit Name: Economics
Content
Introduction………………………………………………………………….3
Economics……………………………………………………………………4
Economics and Future Career…………………………………………….…4
Economics Used in Daily Lives……………………………………………..5
House Market……………………….…..…………………………….……………5
Price and Attributions ………………………………………………………5
House Purchasing and Rent…………………………………………………5
Investment Opportunity….……………..……………………………………6
Recent Increase of CNY Value……………………………………………………6
Conclusion……….…………..………………………………………………7
Reference List…………..……………………………………………………8
Introduction
Economics, which is a newborn term in recent centuries but frequently mentioned in daily lives, has its crucial position in modern society. Many phenomena can be well explained by economics knowledge, not only international trade offs, but also matters related to citizens’ basic necessaries, including individual career, housing, food supply, children education, etc. Callahan (2002) also stated that the economics provides people a deeper understanding of their own situation as acting humans. Hence, there is no doubt that economics is not a knowledge that far away from each people, instead of closely linking with human’s daily lives. This paper presents the definition of economics and also gives the perspectives about how that used in people’s everyday lives.
The Term Paper on Catcher In The Rye Holden Life People
Part one: 1. Holden s Hunting cap: His hat is something that makes him stand out from the crowd and society. To Holden, wearing his hat says that he s not going to be like all the rest of the phonies. It s also something that he really likes and he constantly talks about it being different. On page 22 he refers to his hat as a people shooting hat, meaning he shoots people down when he wears it ...
Economics
Generally speaking, economics is a social science that studies how society manages its limited resources and obtain most social profit form that (Shi, 2014).
It focuses on how to distribute sources in market, which is definitely not just the matter about money and finance. Many economist, for instances, Callahan (2002) and Schumacher (1973), pointed out that human and human behaviors are the main objectives in economics study area. Economics explains that how all elements in the society interact together and what direction that those elements would go. By using it, people can make investment decisions solve many dilemmas in normal lives.
Economics and Future Career
Parents always advise their children to choose the major that has a large demand or a trend of growing need in labor market. That is just an easy example that people use economics knowledge when they choose future career.
Mankiw’s (2011) ten principles of economics teach people how they make decision, one of those said when people face tradeoffs, have to give up something else in order to get one. The further training improves individual’s employment ability, which is core competitiveness that may make this person get a promotion or better job. In future career, young adults often face a situation whether abandon their present career for further training or hopping to other jobs, which exactly they need to use the principle, comparing the potential benefits of training or new jobs with the original one.
Economics Used in Daily Life
Similarly, exchanges are the core of economics. Students, employees, parents, employers，everyone faces that when they balance several choices, no matter what social role he or she plays.
House Market
In terms of accommodation, numerous people concerned about should they buy or rent house. Take Chinese housing market as an example, the fluctuation of house price could be understood by knowing the attributions of the houses and its supply and demand relationship.
Price and Attributions
Everyone understands the price of commodity relate to its quality. Same as the house, which is a kind of good. McMillien (2008) analyzed how different attributions affect the price of house in the USA, and claimed that the coefficient of bedroom number and building area has opposite influence on the price of high-price and middle or low-price house. Those who need to buy house need to priory their needs in house’s attributions and make the most budget transaction.
Price Elasticity of Supply – Essay
Price Elasticity of Supply | | In this chapter we consider elasticity of supply. Students should understand how to calculate elasticity of supply and understand some of the factors that influence the elasticity of supply for different products.Definition of price elasticity of supplyPrice elasticity of supply measures the relationship between change in quantity supplied and a change in price. If ...
House Purchasing and Rent
Economics also explains the changes in price of house by the supply and demand in housing market. Referring to house purchasing, still using Chinese case, the demand partly comes from the real need of residents’ requirements in improving their living conditions, and larger demand generated by housing business, which can bring about huge interest for estate investment. However, the land is limited in China, especially in metropolis, although the supply would increase as the price rising, the characteristics of estate decides that price elasticity of supply is low. In other words, the supply hard catches up immediately because the long time cycle of construction and lots of starting funds. Furthermore, some businessmen only seek for more profit, keeping land in hands, finally leading to the decline in supply. As a result, the price of house goes up to an abnormally high position. Actually, even in global scale, the price of estate is keeping rise to a high level, which may cause a housing market crash (Robert, 2014).
Compared to house purchasing, the supply of house rent is more elastic. The demand and supply reach a new balancing point in a lower price after increasing.
Investment Opportunity
Considering the increasing trend of estate price and low price for rent, as a citizen, it is better to rent house rather than buying one for now. In addition, purchasing estate could be a suitable choice for investment in a short-term. Keeping track the policy of government，selling that before the price has a significant decline, which is definitely a kind of high return investment in short time.
The Essay on Disposable Income Price Demand Supply
Explain what is meant by the term "an economic model" and outline a model of price and output determination in a free market. Examine the effect of a change in real disposable income on equilibrium price and output. An economic model or theory is a simplified explanation and analysis of economic behaviour. It allows us to predict, and therefore intervene, if we do not like the outcome of a ...
Recent Increase of CNY Value
Recently, a very interesting phenomenon, many Chinese overseas students use economics in this situation by using credit card rather than using Australian cash, which is a case about people use economics knowledge in daily lives. This caused by the news that the Hong Kong Stock Exchange and Shanghai Stock Exchange are going to cooperate, and CNY can be used in both market, while HKD can be used only in Hong Kong Stock market. The demand of RMB increases directly influences the value of that. As a student overseas, that is a brilliant idea to use Chinese credit card overseas and pay that debt by CNY.
Conclusion
Economics has been regarded as a vital part in modern society for past decades, and this would continue as the economy develop in a increasing fast speed. People’s daily lives are more likely influenced by the economic situation and become an embodiment of that, with the economic flourish and the trend of globalization. Conversely, as mentioned before, humans can also use economics knowledge in their everyday matters, for better choice, investment or even buying goods in markets. To sum up, the economics is a practical knowledge, which related closely to real world and everyone, and learning and understanding that would be useful to all citizens’ career or daily lives.
Reference List
Callahan, G. (2002).
Economics for real people (2nd ed.) (pp. 17-32).
Alabama, the USA: Ludwig von Mises Institute.
Mcmillen, D. P. (2008).
Changes in the distribution of house price over time: Structural characteristics, neighborhood, or coefficients? (Unpublished doctoral dissertation).
University of Illinois at Chicago, Chicago, The United States of America.
Mankiw, N.G. (2011).
Principles of economics (6rd ed.).
USA: South Western Educational Publishing.
Schumacher, E. F. (1989).
Small is beautiful: Economics as if people mattered (5th ed).
The United States of America: HarperPernnial.
Shi, H. (2014).
Week1: Ten lessons from economics [PowerPoint sldes].
Retrieved from ECF5953, Monash University Studies Online: http://moodle.vle.monash.edu/pluginfile.php/2506363/mod_resource/content/1/ECF5953%20Economics%20s2%202014%20Week%201.pdf
The Essay on Knowledge One People Life
"Knowledge" Knowledge can be interpreted in many different ways. Some may see knowledge as learned education. Others may see education as intelligence. None of these perspectives of knowledge are right or wrong. Every person is entitled to their own definition, source, and use of knowledge in their lives. I view knowledge as the wisdom and insight that one may acquire over time, by personal ...
