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A NOTEBOOK OF LIFE

The term "economics" was popularized by neoclassical economists: Alfred Marshall and Mary Paley Marshall as a concise synonym for "economic science" and a substitute for the earlier "political economy". Since its popularization, the term has been interpreted by various economists differently. Some popular definitions are: ‘Economics is the study of mankind in the ordinary business of life’ given by Alfred Marshall or ‘Economics is the science that studies human behavior as a relationship between ends and scarce means which have alternative uses’ as given by Lionel Robbins.

 

Adam Smith, the Father of Economics explained that ‘Economics is the science of wealth which implies that experiments and theories generally innovated and tested are related to wealth. Economics is the study of scarcity and its implications for the use of resources, production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society.’

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Economics functions extensively at both micro and macro levels. It’s used mostly by trained professionals in terms of budget, demand-supply analysis, and growth analysis at the macro level. An individual also takes various decisions in life in terms of saving, housing, and other investment opportunities to safeguard their family, this is the functioning of economics at micro level.

 

Economics in small things can be thought of as a blank notebook. Throughout our life, we try to fill these blank pages with our needs and wants, provided that they are affordable and we have the willingness to buy. The notebook pages define the total resources that we have from birth or the resources that we obtain and earn by being a part of the labor force. The blank pages are filled with education, and an individual decides the subject to specialize in, along with the school and college to enroll in. The next decision comes in choosing the career path. We choose the path along the specialization which helps in our growth as well as in income generation. The decisions up till now involve filling the pages that already exist in the notebook.

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The forthcoming decisions help to add the pages in the notebook. Once the income is generated, its spending is analyzed. The spending varies with the socio-economic status of an individual. The rich will focus more on investing in shares and enhancing their income further. The poor will focus more on improving their living standards and fulfilling the basic necessities of life. The pages are filled with housing, food, jewelry, investment, and bank savings. At the time of retirement, the addition to pages comes to an end and during old age, these filled pages start to get torn and wrinkled. The notebook of life thus comes to an end with death.

 

A small vegetable starts its day with labour-intensive activities forgoing the education and knowledge investment. The vendor still uses economics as he knows to sell the items at a price that is accepted at the demand and supply equilibrium. He also chooses to sell more items as the price increases and take leisure even less, taking the income effect to be superior to the A NOTEBOOK OF LIFE substitution effect. The vendor saves his vegetation for times of uncertainty. From the income earned he spends on his children's education trying to break the vicious cycle.

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A student in junior classes spends more time in leisure and recreational activities rather than studying. As she grows she spends more time studying and enhancing skills that are required for job prospects. Thus throughout their lifetime, every individual takes small economic decisions to become economically successful in future.

 

In conclusion, even a small child knows what their interests are and chooses their food and clothing. Economics lies in the very being of this creation and has been practiced and is being practiced till now. With diversification, economics has been widened and has entered every field in the globe.

Simran Kaur

Daulat Ram College

 Delhi University

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