What are the economic phenomena in life

The Phenomenon of Life Economics 1:

It is easy to go from thrift to luxury, and it is difficult to go from luxury to thrift" This sentence comes from "Zizhi Tongjian", to the effect that it is easy for our living habits to change from thrift to luxury, but it is difficult to change from luxury to thrift.

This sentence has been passed down to this day, and has become a motto to educate everyone to abide by the fine tradition of diligence and thrift, and at the same time, this sentence also reflects a consumption characteristic of people, that is, when people develop a consumption habit, it is difficult to change and reverse, when people's income can increase consumption input, it will be easy to become extravagant, but when people's income decreases and needs to lower consumption standards, it is difficult to adapt. From an economic point of view, this consumption habit is called the "ratchet effect".

The ratchet effect" is put forward by the famous American economist Dusenberry, whose main point of view is that "people's consumption habits are irreversible after they are formed, easy to adjust upward, but difficult to adjust downward, and the most obvious performance is in a short period of time, the habit effect of consumption is larger, and it is difficult to make appropriate consumption habit adjustments immediately with the reduction of income level after developing luxury consumption habits." For example, when some people are accustomed to living in a luxurious and luxurious big house, and then let them move to a small house, it will be difficult for them to adapt; Some people are used to living a life of big fish and big meat, and if he is allowed to return to that kind of coarse tea and light meal, it will be difficult for him to accept it.

The ratchet effect is also a manifestation of human nature, people are born with desires, and appropriate desires are conducive to promoting people's hard work, but everything must be moderate, excessive luxury will cause adverse social impacts, which is undesirable.

The Economics of Life Phenomenon II:

Many girls feel that they can't be wronged, and set their "opportunity cost" too high, and always feel that they can find someone who is better than them in all aspects. If you have 3 points, you should look for 5 points, and 5 points you need to find 7 points, but excellent people are often in the minority. I don't want to work hard but I want to find a high-quality boy, I can't find it, and I don't want to be with someone who is similar or worse than the same, and reduce my quality of life, so I can only be single!

Many boys are single more because their own conditions are not very good, and they are unwilling to wronged themselves, thinking that their continuous efforts will increase their "opportunity cost" and find one that is more satisfactory to them. In this way, there are more and more single men and women.

And there is also an "opportunity cost" principle in economics. It means that in the face of a multi-option decision, the most valuable option to be discarded is the opportunity cost of this decision. Put simply, when we give up something in order to get something in order to get another, the "opportunity cost" refers to the biggest loss after making a choice.

Economics may be very inscrutable for many people, in fact, economics is not mysterious, it is ** in our real life. Now I would like to introduce you to 8 interesting economic phenomena in our lives.

1. When I open the refrigerator, why does the refrigerator room light up but the freezer room does not? - the principle of cost-effectiveness".

The "cost-effectiveness principle" means that the product should only be improved if the benefits of the improvement outweigh the cost of the improvement.

For the question of the topic, we can compare the costs and benefits. Whether in the freezer or in the refrigerator, the cost of installing a light that turns on automatically when the door is opened is almost the same. This is what economists call a "fixed cost", which in this case does not change with the number of times you open and close the refrigerator door.

In terms of efficiency, having a light in the fridge makes it easier for you to find things. Since most people open the freezer much more often than they do the freezer, it is clear that installing a light in the freezer is more beneficial. So, since the cost of installing an additional lamp is the same, it is more cost-effective to install a lamp in the refrigerator than in the freezer according to the principle of cost-effectiveness.

This also explains why 24-hour convenience store doors are locked, because at that time, such industrial doors were locked, and we would not make a lockless industrial door for convenience stores. The product should not only be designed to meet the needs of the seller to keep the price low and make it easy to compete, but also to include the features that best meet the needs of the consumer. Put simply, successful product design is about striking a balance between the two aspects according to the "cost-effectiveness principle".

2. Why are worn out coins always spent first? - The principle of "bad money drives out good money".

This phenomenon can be compared to a well-known principle of economics, "bad money drives out good money". At the moment, the most popular explanation is this: when you have a brand new hundred-dollar bill and a worn-out hundred-dollar bill in your wallet, you always tend to spend that worn-out one first.

Over time, the money in circulation became more and more worn, but the new money was not spent, it remained in the wallet, so the bad money drove out the good money.

"Bad money drives out good money" originally said: in ancient times, because of the great difference in the process of minting money, people tended to collect those "good coins" of full value, and tried to transfer those "bad coins" with poor quality to others, so that the market circulated bad money and good money at the same time, and the bad money could not be effectively stopped and punished, so that the cycle, the good money would be expelled from the market, and the poor quality currency would circulate in the market.

In today's society, you don't have to worry about "bad money drives out good money", although people will reject residual coins, but the preference for new coins is not as strong as in ancient times, or even if you collect new coins, you can't exchange them for more valuable things. In addition, the cost of renewing banknotes is not high, and most of the residual coins in the market are collected by commercial banks and sent to the People's Bank of China for destruction.

Nowadays, the phenomenon of "bad money driving good money" has been widely extended to various fields, and people use this law to refer to things that are not of high value will squeeze things of higher value out of the circulation field.

In life, many phenomena can be applied to the principles of economics.

Interpretation. Take the ten principles of economics.

For example: Principle 1 is that people face the problem of trade-offs. For example, when it comes to buying fruits, there are now three kinds of fruit available to us, one is an apple, one is a watermelon, and one is a banana, and we can only buy one fruit at a time.

So if I buy apples, it means that I have to give up the opportunity to buy watermelons and bananas. In the same way, if I choose to buy watermelon, I have to give up the opportunity to buy apples and bananas, and if I buy bananas, I have to give up the opportunity to buy watermelons and apples; Tian Ji horse racing.

It is also a well-known routine of trade-offs to maximize benefits.

Principle two, measure the opportunity cost by the value of what is being given up.

For example, the choice of going to college involves a large opportunity cost. If we don't go to college, we get a salary, multiplied by 12 times 3, which is one of the opportunity costs that we give up in three years, and we also have to pay a certain amount of tuition fees to go to college, and this tuition, multiplied by three, is the real cost we pay.

Principle 3: Use marginal cost.

and the comparison of marginal returns to make a choice. Many decisions in life involve making small incremental adjustments to existing action plans. Economists refer to these adjustments as marginal changes.

In many cases, one can make an optimal decision by considering marginal quantities. For example, airline tickets.

The ** was originally 200 yuan, but due to various factors, the tickets for this flight were not all sold out, and now the captain proposed to sell the tickets at 100 yuan. Is this feasible? The answer, of course, is yes.

If the ticket is sold for 100 yuan**, its marginal cost may be the drink or meal that the passenger drinks or eats on the plane, which is certainly less than 100. But if you don't sell the tickets, you're going to lose a lot of tickets. So the trade-off yields the marginal benefit.

If the marginal cost is greater than the marginal cost, the rational salesperson will dispose of the tickets at a low price, rather than losing their value in vain.

Fourth, consumer preferences and expectations for the future affect consumption choices. Because people make decisions by comparing costs and benefits, when costs or benefits change, people's behavior changes. That is, people will respond to incentives.

For example, when apples are raised, consumers will eat more pears and less apples, because the cost of eating apples is high. For orchard owners, planting and harvesting staff will be increased to increase yields, because the increase in apples can increase profits. In addition, when taxis are low, people may choose to take taxis, but after the price increases, people will choose lower buses.

In fact, economics permeates many aspects of human life, even where you feel that there should be no other.

For example, when we choose a path in life, we are measuring whether the difference between your efforts (time, energy, youth, etc.) and your rewards (love, career, achievements) is satisfactory to you.

There is also the most basic rational person hypothesis in economics.

It assumes that all people's thoughts and behaviors are in pursuit of maximizing their own interests, and in fact, this part of the interests is not limited to material things, and the mental and emotional gains and satisfaction are a kind of interests. Somewhat similar to Taoism.

The pursuit. I recommend you to read a very simple book, "The Economics of Coke Milk".

This book is an interesting primer in (micro)economics.

After reading this tease or book, you will experience the dilemma of using the principles of economics.

It will become clearer and easier to guide you in your life decisions.

Economics is not too difficult, and it's interesting.

In microeconomics, the simplest, the phenomenon of equilibrium between supply and demand. There are more cabbages in the market, and its ** will be reduced, because the supply exceeds demand, and the seller must find a way to sell the cabbage, and the price reduction is the most direct way. After the cabbage season, the yield decreases, and its ** is high, because the supply is less than the demand, and the buyer naturally has to pay more money to buy the cabbage he wants.

In the simplest market model, other conditions remain the same, so that a supply=demand equilibrium point is finally reached, which is called market regulation. In terms of macroeconomics, the simplest situation is the balance of payments deficit, when the deficit is very large, for example, some poor African countries, unable to make ends meet, borrow money from our country for consumption, and make up for the deficit are divided into two categories: funding and adjustment. The subsidy policy consists of a policy of reducing foreign exchange reserves and international borrowing.

The subsidy policy is only suitable for short-term balance-of-payments deficits. The balance of payments deficit is affected by the money supply and interest rates, which are determined by the base money, which is made up of domestic credit levels and foreign exchange reserves. When the subsidy policy is adopted, on the one hand, the financial authorities sell foreign currency and buy local currency, which reduces foreign exchange reserves and causes a decrease in the base currency. On the other hand, we should try our best to buy local currency assets and put local currency, so as to raise the level of domestic credit and cause an increase in base money.

In this way, in the process of covering the deficit, the decrease and increase of the base money compensate for each other. In short, the subsidy policy balances the increase or decrease of the base money through the compensatory process of increasing the level of domestic credit, so that the money supply and interest rates remain at their original levels, without changing the environment in which the deficit occurs. As such, it is not advocated by the International Monetary Organization.

However, with the capacity of foreign exchange reserves and the possibility of international borrowing, the implementation of the subsidy policy is simpler, and the cost and resistance are less.

A few examples of economic phenomena:

1. There are always many consumers who come to consume discounted goods, supermarket store celebrations, etc.; One is the phenomenon of following the trend, and the other is the psychology of taking advantage of small advantages.

2. The more the house price goes, the more people buy; This is due to people's psychological expectations of housing prices.

3. Treasury bonds are always sold out quickly; Because the risk of national debt is small.

4. There are many shops and vendors around the school; There is a high demand for items near the school.

5. There are more mobile phone users of two or three thousand, and fewer mobile phone users of five or six thousand; **The lower it is, the greater the demand.