What is economics and why should an engineering study?
We have been members of the economy since we have exchanged our redundant products with each other in a social group. After the first trade, we specialized in one specific field to increase the efficiency of producing goods. Firstly, it was the food which could be spoiled in a short time such as eggs, milk as well as meat and it changes its own appearance with the common precious thing. The gold and silver play role in the early years and the banknote takes the duty to regulate the trade. Each country has own banknote confirmed by gold to conduct own economy as well as traffic with other countries particularly, import necessities and export yielding produce. For example, Mongolia sells coal to the People’s Republic of China and buy daily goods in particular plastic toys, clothes and construction material. There is a mysterious hidden hand that coordinates the merchandise between the individuals, companies, and countries. The experts decided to name it as an “economics” and the exact whole subject is wider than our expectation.
Generally, economics is divided into two main groups, macroeconomics, and microeconomics, it usually focuses on the world economy and sales in a market, respectively. The economics study what, whom, how to distribute fairly limited resources to maintain boundless demand of all people. The distribution is not always equal, instead, it depends on the effort you made. The harder you work, the more you gain. It is a very simple and complicated way of explaining economics. The factors of production can be divided into four bodies by economic terminologies that define our current statuses such as land, labor, capital, and entrepreneurship. They are the inputs needed for supply. Furthermore, we can get profit with ownership of this stuff, or we can build new properties using these factors.
The economist often concentrates on the specific area of the economy and develop the trend line equation; it can be anything such as demand of new trainers of teenagers, a brand-new minimalist lifestyle of a small family as well as an effect of steel industry production increase on the coal handling and preparation plant. They use the model and simulation of definite sample to predict or analyze population changes as a butterfly effect. Moreover, the economists always try to answer the question that how the private interest affects to develop the system which produces or serve for satisfying public interest. If any start-up company wants to raise a fund or operate with very high property, the owners have to design a perfect strategy that truly fulfills the need of customers to assemble a better life. There is no business, that reaches the peak of achievement, does not involve the consumers’ requirement for products and/or service. The desire of people to get rich or accomplishment pushes society to develop itself quickly. Sometimes, we heard that people become losers because of industrialist greediness. These cases are studied in advance by economists.
In reality, we can use economics in a lot of ways, especially to increase or keep safe estate when the gold, copper and especially coal prices fluctuate because of some disasters, unexpected economic spectacles, and conflicts in the middle east. We are human beings so that we tend to instinctively follow others’ decisions and misdoing without any filter based current data. Otherwise, the highly masterminded person hangs their hope and property on several options after conducting deep research until getting acceptable results. The majority of people would agree that only working harder could not be enough to keep financial freedom. Unfortunately, lack of knowledge of economics forces them to join the rat race.
