Statement of Purpose for Economics

Todd G. Buchholz defines economics as the study of choice. Economists examine the consequences of the choices people make. The creation and evolution of economics over centuries came from the ideas of four economists: Adam Smith, Thomas Malthus, David Ricardo, John Stuart Mill, Karl Marx, Alfred Marshall and John Maynard Keynes. These well respected economists help the theory of economics grow and become what it is today.

People make economic decisions on a daily basis, from choosing to go to the grocery store and cook dinner or going out to eat. While in the general scheme of things this is a relatively small decision to make it still can have impact on the economy. Yet a decision for a family to have a child is more of a major decision and has far more of an impact on the economy then a dinner decision. There are four basic principles to economic decision making and in the following I will list and explain these. I will also provide and an example of a decision that I have made in my personal experiences and what impact that has had or could have had

In order to fully understand what economics is, t. For example, economics is about the money that we make and what we choose to do with it s, and it’s not an economist’s job to tell people what stocks and bonds they should be investing in. “ The Economist deal with politics and current events and are not specifically economic-related, despite the title of the publication. But there is a subfield of economics known as political economy”

Kahneman’s article is an analysis of intuitive thinking and how it guides our decision-making. Although primarily aimed at the field of psychology, it is an interdisciplinary article with applications in economic theorising. Kahneman attempts to differentiate between two systems of thought, one of intuition (system 1) and one of reasoning (system 2), and argues that many judgements and choices are made intuitively, rather than with reason (a slower and more deliberate process). Intuitive decision making, which encompasses heuristics, although generally more efficient and rapid, makes the agent potentially subject to errors due to framing effects or violations of dominance. The analysis of the studies and theoretical situations also provides criticism of the commonly held model of the rational agent within economics. The article also further conceptualises Kahneman’s theory, the Prospect Theory (Kahneman & Tversky, 1979), which has descriptive applications of people’s choice in decision-making situations involving risk and known probability of outcomes. These situations are typically unexplained by the more normative rational agent model.

I am a hardworking, outgoing and self-motivated high school student. The program I have applied for is business accounting. I am convinced that I possess a unique blend of skills that will enable me to successfully complete this program. To begin with, I am quite comfortable working with figures. I regard my love for figures to have come by default. From a very young age my dad who happens to be a mathematics professor saw to it that I developed the necessary analytical capabilities through regular coaching. Hence I have over time developed great passion for analytical subjects including business accounting. I regard my being comfortable with figures an essential skill that will help me succeed in this particular program. Further, I have also been an avid reader of financial magazines and journals. In that regard, I possess significant knowledge on the workings of business. This I will combine with my liking for figures to enhance my chances of success in this particular program.

Personally, economics has never been my calling, the arts and crafts would be more fitting. After persuasion from my parents and siblings, I decided I would give it a shot. To my surprise, Naked Economics (2002), by Charles Wheelan, was an extremely interesting read which completely changed my understanding of what economics is. Wheelan made it easy for me to learn and stay entertained. At times, I even caught myself giggling. His book taught me that economics isn't about money and stocks, but much more.

1.Economics is best defined as the study of A) financial decision-making.B) how consumers make purchasing decisions.C) choices made by people faced with scarcity.D) inflation, unemployment, and economic growth.Points Earned: 0.4/0.4Correct Answer(s): C

In today’s economy, decision-making skills vary for each household; however, the bottom-line goal for every individual is to get the most for their money. In order to do this, there are 4 principles of individual decision-making: facing trade-offs, evaluating what one is giving up to obtain their goal, thinking at the margin, and responding to incentives.

Economics is often called the "science of decision making." The decisions that economists analyze range from personal decisions such as how big a pizza to order or whether to buy or lease a new car to the decisions the federal government makes about things like the size of our military. Economists use information about these, and other decisions, to develop indicators that can be used to determine the health of our economy. Just as a physician relies on indicators such as temperature, blood pressure and heart rate to determine the health of a patient, economists use indicators like gross domestic product growth, the unemployment rate and the rate of inflation to predict our

From childhood, I have been passionate about mathematics and problem solving. Given the quantitative focus of engineering, I pursued my undergraduate studies in civil engineering. During my years in college, I used my elective courses to explore subjects from different disciplines. Of these, I developed a deep interest in finance, particularly the financial markets and trading. To know more in finance, I later enrolled in CFA level 1, participated in virtual stock market competitions, did an internship in equity research and started trading with some personal funds.

On the other hand, economics degree course provides a range of advantages as well as disadvantages. For example, after pursuing the economic course, I will work either as an accountant or as financial analysts as well as investment analysts and statistician. Economics course will provide me with the opportunity to learn new investment skills, capital management and ability to analyze economic trends and patterns. Despite this, economics is a very complex and demanding course. In addition, economics mostly involves tiresome work

The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.

The study of an economic world is a complex and unpredictable undertaking, involving people buying, selling, investing, bargaining and persuading. As a result of it being broad and complex, it is divided into many disciplines to make reason from information given by the economy.

I think that what we learned on market economics is the correct way of thinking about human interaction and the functioning of markets. Microeconomics offered an interesting, and potentially more useful, perspective on the market because it essentially told us how our individual decisions affect the market.

Growing up in a business-oriented household consisted of being exposed to, and witnessing talks of business management — be it at in-house parties or out at dinners — from a very young age, which I believe has impacted my upbringing and passions to a great extent. Along with a substantial inclination towards Business Management, I also had a keen interest in the field of Accounting, which I became more aware of at the age of around nine. Most kids resent going to the bank with their fathers, however, for me, it was always a source of amusement and gratification. As a child, I would witness my father give cash to the banker and/or vice versa, which would leave me to ponder about what exactly was going on. This eagerness to have the know-how of money and what goes behind it made me discover my true passion.