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Understanding what economic is is like understanding mathematics. Economics has to do with all aspects of human life, profession and work. There is different between economy and economics. Economics is a social studies. So let's dive deep into it.
What is economic?
Like I said earlier, economics is not just a simple topic. It has a lot to do when it comes to human life generally. There is something we need to know about it. and economics has the answer. For example, countries do suffer recession, many women do not have work . Some earn very little.
Some countries are very poor while some are very rich. Some countries don't have much but they are doing well. One need to ask what is the secret. Sometimes you hear people say, the management of a company is bad or the management is good. In all economics will provide the answer. When you know economics very well, you will not see things the way others see it. Your thoughts and reasons will be different from that of those who don't know economics.
Let's define economics better.
If you are studying about wealth, finance and money . If you are studying how people use their resources. scarcity on money or goods. All this is about economics. Infact economics is more than that. I am going to give you an example of a state in Nigeria called center of economics.
Why is Newi called city of commercial and industrial in Nigeria. Is it because other cities are not doing well in business ? Not at all . This is because it is a city of too much money. When you think of creating something new that will improve economy of the people. Newi people will give you the idea. They are known as people who do not go where there is no money.
The point here is what ever you will think of in terms of economics is in Newi. They have self discipline. That is, they are not after how many years it will take or how much it will take to improve there lives.
Types of economics.
Knowing what economics is. Now the question is what are types of economics and how it works. One is called traditional economics Each community has a way of raising money or distributing goods. Some are farmers . Some are brick layers. Some are labourer. This are ways they work connected to each other. They don't care much about technology. They believe in agricultural process than industrial production. This is an old way they use to improve their wealth but it helped just few of them. Especially their kings.
Another one is known as Market economics I want to use business Men and women in my city for example. Those that buy palm oil from Uyo and take it to northern part of Nigeria. The power to regulate the price of oil is in their hands. They decide whom to sell to after buying from the producers. And you cannot just come in to buy and sell unless you are in their union. This is another way the make profit from the market you can now see that economics covers everything and it is important to understand that.
This is the reason behind being poor or being rich. Some people are doing the same business but they don't know the secret to regulate the market and price so as to make more Income
Why is study of economics important?
One way to make more money is to study economics. To study scarcity of a particular goods or services. Scarcity means that people need more of that thing so if you make it available, you make more money while solving their challenges. That is the study of economics. Individual can do it government can also do it.
For example in Nigeria, from December 2022 to April 2023. During the change of old naira to new naira. We suffered so much because of scarcity on cash. All who tried to bring in cash during this period made some fortune. As an economist, you take advantage of scarcity of anything that humans need and you make more money from it.
Always be on the lookout what people need much in your area and find a way to supply it to them. I remembered early days in Akwa Ibom state when there was no bakery in Uyo. Many busines Men will travel to ABA to bring in bread. I tell you they built house from selling of bread. It is the understanding of economics will help one to be so wise in business.
Always think about this 5 concepts of economics
Scarcity. Whenever there is scarcity of products. It is an opportunity to increase your wealth if you know what to do on time. For example many of us that are into #crypto . You understand what I mean. When there is a high demand on a particular coin, the price will go high and holders make more money.
Supply Demand. Make sure you have plan to supply goods at any time people demand of it. Yes if you are good in responding to your customers demand all the time as a producer, you will keep increasing your wealth.
Incentives. Incentives are important too. No wonder LeoFinance always give out insensitive to winners of contest and anyone who is doing well. Companies who are taking over do not play with insensitives because they know it keeps the line of customership open.
Trade-off and Opportunity Cost. Like the example I gave about palm oil. It has season to buy and season to sell. It is good you buy when it is cheap and sell of when the price is high.
Economic Systems. Understanding the economics system will help you in all aspects of life. Do not forget that economics has to do with everything you do. Are you a professor, a journalist, a doctor, think of whatever you can. It all revolves around economics.
In conclusion, we have discussed what economic is , how it works, why we need to study it and the importance of it. Lastly we discussed 5 concept of economics. I hope you will find it interesting while you are reading it
