Nature and Scope of Economics Free Essay
Introduction L01: Principles of basic economy L02: Applying economic principles L03: Applying analytic skills L04: Development of Independent Learning and Group Work Skills L05: Developing communication skills Conclusion References
The macroeconomics includes the economy of the nation and also the global economics. Moreover, the macroeconomics is a wide area for the study for research with the practice to earn knowledge regarding the changes and variations in the income of the nation. The research is carried on the different learning outcomes which are based on the principles of the basic economy and its explanation about the Wolf of Wall Street movie. The other learning outcome includes the principles that are used to solve the problems in the economy. The third learning outcome helps in the development of the analytical skills to solve the problems regarding economics. Furthermore, the development of independent learning and teamwork is discussed to solve the problems as shown in the Wolf of Wall Street Movie and lastly, the use of verbal and non-verbal skills that are used to communicate for the basic understanding of the economic principles.
L01: Principles of basic economy
The study of social science that deals with the purpose of analysing and explains the principles of production, consumption and sharing of goods and services is termed as economics. The principle of basic economics is to teach people to make right choices during the time scarcity and to cope with pressure (Rios, McConnell & Brue, 2013). Furthermore, this is the study of economics where proper use of resources under scarcity is taught. There are two types in which the basic economic principle is distributed namely microeconomics and macroeconomics. Microeconomics is the part that deals with the personal choices such as business and household during the time of scarcity and also economic consequences as a result of these decisions. On the other hand, macroeconomics examines the entire economy as a whole such as employment, national economic condition and inflation. The principles of the basic economy state that every commodity comes with a cost and the choices people make are only for good reasons due to which the economy of a country grows. The incentives to the people matters because these create a social-economic system in a country influencing their choices (Fisher, Kelman & Nan, 2013). The economic principles also explain not only the country but also that people also get benefited from the voluntary trade. The economic condition of a country for examples the values of goods and services is directly affected by the choices that people make. The point of examining economic principles is to comprehend the choice procedure behind apportioning the current accessible assets, the requirements constantly boundless however assets being restricted.
L02: Applying economic principles
To understand the basic principles of the economy and solve the problems residing within the economy application of economic principles are explained below.
- Goods satisfaction regarding price: This is termed as marginal utility concept in economics. Here, the idea is to understand how many goods satisfies a person concerning its price (Roach, 2014). A person will think of maximum utilising the goods along with the total utility given under their budget.
- Opportunity Cost: As shown in the movie The Wolf of Wall Street ("The Wolf of Wall Street Official Trailer #2", 2017), the most important lesson of the economy is to understand the scarcity and unavailability of resources. Opportunity cost is a basic aspect of almost every economic choices that are being made. Here, people can spend their limited money on buying products rather than wasting money on other useless things (Tietenberg & Lewis, 2016).
- Applying proper taxes: Public goods are not always provided by the private firms in the free market. They provide and under-provides goods depending on the demands of the customer choices. So, it is essential for the government to interfere in this scenario to optimise social welfare.
Adopt different policies: Macroeconomics affects everyone in a country in some way or another. During the time of such scarcity people will lose a job and get unemployed, there will be inflation which will reduce the value of the money (Demyanov & Pallaschke, 2013). Mass unemployment will cause social fragmentation. So it is very necessary for the people to adopt different policies to save themselves from unemployment.
L03: Applying analytic skills
Economic problems are the scarcity of resources which are insufficient and finite but are available to satisfy the wants and needs of the people in society. The problem is to allocate the items that are low in number to produce many useful goods that are used by the people living in the society ("Principles of Economics |", 2017). By applying the analytic skills as shown in Wolf of Wall Street and making development here are five ways in which the economic problems can be solved.
- Identify the problem: The first analytic skills is that to identify the main problem and develop more effective solutions so that it addresses the challenges faced by the economy of the country. During the time of inflation, one should save money rather than wasting it on the goods with high rates.
- Explain the elements of the problem: It is an essential skill which develops one too psychologically and manageable. In this case, the analytic skill is implemented by breaking the problems into small parts to explain the elements regarding the economy.
Examine and find potential solutions: To find a possible solution is very necessary because when macro economy happens, then not only poor but middle class and rich too gets strangled. So during the time it is important for everyone to think and buy products carefully without using all their saving on the goods that are not available in the market.
L04: Development of Independent Learning and Group Work Skills
The independent learning to solve the economic problem as the knowledge is gained by the efforts of the people and the skills are developed to analyse and also to evaluate the gained knowledge critically. This can be proved helpful to solve the economic problems. This also helps in solving the control to achieve the desired goals (Taylor, 2013). Whereas, the group work skills can provide both advantages and disadvantages while solving the problems. As the group work involves different people and this means a different type of information. The general problems in the macroeconomics are to deal with the production and to overcome these problems. The group work explains the different roles of the people in the group along with the behaviour towards the problem (Nicholson & Snyder, 2014). The roles related to the task are to be maintained and then the negative or poorly executed roles are to be identified and discussed to improve them. This situation is, therefore, not termed in the independent learning skills because the person is carrying the research all alone and gaining knowledge. Further creating small objectives to achieve them and improve the economic-based problems. Additionally, it can be stated that developing both the skills which includes the independent as well as the group work skills is a better way to solve the economic problems. The group work also comprises of some disadvantages that are minor or major conflicts which can at some point prove harmful for the group in the achievement of the goal. Moreover, these issues were presented in the Wolf of Wall Street movie ("The Wolf of Wall Street Official Trailer", 2017).
L05: Developing communication skills
The verbal and non-verbal communication skills are an important part of the development of the economy. This was well described in the movie, Wolf of Wall Street. The increase in the communication is necessary to improve the confidence as the questions need to be answered to let the ideas regulate (Dahl, 2017). The importance of communication skill is also that it is important to provide attention to the fullest for understanding. The Movie also showed the encouragement to listen and not just to hear which indirectly supports the speaker and also motivates them. Judgments and reacting to an improper behaviour is to be reported to the leader of the team or the entire organisation as early as possible. Another important skill that is to be calm in pressure situations and also to check for the accuracy as this helps in showing the attentiveness towards the speaker. Non-verbal skills are an important factor to encourage understanding the economic principles. Written letters or bulletin boards can hold up a paper which states all the principles necessary for the development of communication skill as it is necessary for the explanation of the economic principles. Moreover, there are many different methods to encourage and explain the economic principles falling under the category of verbal and non-verbal communication skills (Menon, 2014). The movie, Wolf of Wall Street, was completely based on the skill of verbal communication and shared the different principles to help and move the company forward regarding the economy.
It can be concluded from the above report, that the macroeconomics is an important part of the study in the economics of the country or an organisation. The help of the case study or the movie, Wolf of Wall Street it is made clear to overcome the problems in the economy. Different methods are provided to understand and explain the problems and their solution. The learning outcomes are made to understand the situations in the real-life experience. Furthermore, every learning outcome is specified for the different purpose of understanding.
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