Using Microeconomics to Teach Life-Skills

for hire
Photo by Clem Onojeghuo on Unsplash

Many parents may have studied economics during a bachelor’s degree. However, this article will teach them how to use microeconomics to teach basic life skills to children.

Scarcity

Your son must be introduced to the concept that we all have unlimited wants but limited resources. This implies that we must make decisions that give us the most satisfaction.

Opportunity Cost

This concept is the next best decision foregone. Your son will be trained that every decision that he makes will close the door to another decision. Thus, he is expected to understand the value and perhaps risk of his decision in the context of another benefit that he has lost.

Satisfaction

Many people think that satisfaction is an easy concept. It is the state of being contented. Unfortunately, economists are more interested in the marginal difference in satisfaction. For example, what is the increase in satisfaction of visiting Japan as compared to Thailand?

The reason is that with the specifics, it will be easier to provide incentives to make changes in consumption patterns.

Elasticity

This is the concept to measure the sensitivity of a change in one variable and how it will affect another variable. The application of this concept is that potential customers have different views of price changes in various products of the same industry. Thus pricing strategy should not be viewed as a solo effect but part of the eco-system of other products. Another way to apply the concept of elasticity is that the child will have to do a constant market check about wage expectations of his future industry. 

Barriers to Entry

Your son must understand that in a market, there are both tangible and intangible barriers to entry. The reason is that the incumbent firms have taken the risk of getting accepted by the consumers and they must legally create barriers to prevent the entrance of freeloaders.

In the same say, your son will be trained to appreciate all the training he has amassed to reach his first job interview. Thus, his academic qualifications can be viewed as a barrier to entry or an advantage for him to get the dream job.  

Price Mechanism

Economics brings about the interaction between the demand curve and the supply curve. Together, they introduce the equilibrium price which, at the same time, also highlights the existence of the consumer and producer surplus. This implies that if there is no perfect information, then the current clearing mechanism, maybe wages, may lead to inefficiency.

Thus, for your son to make the best decision, he must have access to the most relevant and accurate information. But why he does need to study? The reason is rather obvious. With the current tsunami of information provided by the internet, he must have the intellectual rigor and maturity to be able to make the best decisions within a short-given time.

Law of Diminishing Returns

Many economics students understand that the law of diminishing returns means that as more of a variable input is applied to a fixed input, the product will increase, reach a maximum point, and then decrease.

Your son can apply this in the situation that he just gets a bachelor’s degree and does not want to learn new skills. With time, he may find that his employability may not be attractive.

Market Failure

However, sometimes the market-clearing price may not be the best way of allocating scarce resources. Thus, there are many situations in which the government has to intervene by taxation, subsidies, or implementing price floors and ceilings. What is the implication of all this?

Your son may have a deep interest in knitting, but it may not be offered as an academic subject in the national university because there is not enough student demand to run the course. If the market demand for knitting changes, the government may reconsider its position and provide help.

Similar Articles

Virtual Interview

Ever since the Covid pandemic struck in 2020, there have been many changes in the workplace situation. The term Zoom has become more of an adverb rather than the name of a company - which is a mark of how influential it has become.

How to Secure Your Future as a Freelance Writer

A freelancing career can be extremely lucrative. In fact, two-thirds of freelancers say they earn more than they did at traditional jobs.

online training

Over the past few decades, the field of education has seen drastic changes. Not only has online education become a thing, but Research and Markets estimate that the e-learning industry reached a value of $187.877 billion last year.

Top Six Principles of Good Teaching

With the right method and attitude, anyone can become a good teacher. Here are some tips that will help you develop your style and get better results with students from every background.

Two people sitting across from each other a desk, only their hands are visable. The one on the left is holding a contract and a pen.

Within the business world, there are many career paths you can take, and there is no ‘one-size fits all’ approach. If you are an expert in your field, then a career in business consulting may be the one for you. Here are a few things to know about becoming a business consultant.

 

How to Create Your First CV?

If you have to make your very first curriculum vitae, it is certainly because you are looking for your first job. As you might already know, you will face stiff competition since most employers favor experienced candidates

new job

Starting at a new job is an exciting time for any professional, presenting new opportunities and experiences. It is important to start off on the right path with any new job, but knowing how to achieve that can be daunting and unclear. Consider these strategies and you will be sure to find success.

5 Great Career Options for Travel Lovers

Tired of spending life stuck behind a desk? Maybe it’s time to consider a career change to get you out of the office and exploring the world! If you love to travel, you’re in luck – there are many opportunities if you want to travel regularly as part of your career.

beauty industry

The beauty industry has been growing for quite some time now, offering a wide variety of jobs. However, it doesn't mean it's easy to find a well-paid job in this industry - a lot of hard work, goodwill, and smart choices are needed to succeed.