Economics Course Economics Impacts on Many Areas

Economics Course

Economics impacts on many areas of life subsequently it will impact on many areas of professional life. Reflecting on the lessons learned, including the knowledge and skills gained, the real value is in the way that economics concepts can be applied to the real world; not only to explain event that are seen in the macro-environment, but to guide the way personal decisions will be made with that knowledge.

The first indicator of the lessons and concepts taught in the class being absorbed and developing into transferable knowledge has emerged with an increased understanding of the way that the economy operates and the influences which are present in the economy that are driving up prices.

There are many examples of the economic concepts; one example is the way that supply and demand has impacted on oil prices which has had a knock on effect in the economy as a whole and given rise to inflationary pressure. Oil is a major input into many different sectors, either directly as a component, such as gasoline or plastics; otherwise it is needed as an input such as a cost component that impacts on the price of transporting goods. The demand, especially from many developing countries has increased the aggregate global demand, which has resulted in the upward pressure on prices (Nellis and Parker, 2012). The increasing prices can be seen as impacting on the behavior of different consumers, for example, in the car market it is notable that hybrid cars, such as the Toyota Prius have seen increasing demand, with the price of one good (gasoline) driving the demand for a different good a car that uses less gasoline (Greimel, 2012). This also demonstrates the concept of cross elasticity of demand, and as demand for these cars have increased and the market develops more suppliers have been attracted to the market. The concepts have also helps to explain the global recession, as supply and demand hits different markets with lower demand for housing impacted by lowering disposable incomes which in turn impact on the value of real estate and the level of asset security held by banks.

This also leads into increasing the understanding of the current complex economic difficulties, reducing liquidity leading to lower amounts to lend and the more constrained money supply impacting on the ability of firms and individual to borrow, the supply of money is limited which will impact on demand which in turn impacts o the employment situation and impacts on unemployment levels, taxations revues and transfer payments. The problems of government in balancing the federal budget can also be appreciated in this context; with the dichotomy of needing to reduce the deficit at the same time as making direct or indirect investments to stimulate the demand to create demand at a time when a major sources of revenues taxation, is declining and transfer payments are increasing.

When reviewing personal performance on the course there are some strengths and weaknesses; although fully competing the course, including theory on this reflective essay, there was some rook for improvement. Just as different needs have to be balanced in a budget there is also the need to balance different demands in real life, this can make a totally proactive approach toward the course more difficult, especially when working in a combat zone. Many of the tasks were completed with a more reactive or passive response with other duties interfering. A more proactive approach to the course may have increased the learning achieved and the depth of the learning, possibly aided with some supplemental reading which may have been used to expand the knowledge gained from the course materials as well as helping to expand understanding of the application of the knowledge that have resulted from the course.

There were some topics which were more difficult than others. The initial challenges of supply and demand graphs, and the way that different influences impact on the supply and demand curves, were overcome and the application learned quickly. This forms a basis of many concepts within economics and can be used to help illustrate the way different influences impact on the economy as a whole as well as on individual products. The more difficult elements of the course were the combination of the way monetary and fiscal policy would be able to impact in the general environment. The early lessons and the way budgets are formed is fairly simple, but with the different theories regarding the way different policies may impact in an economy, such as the classical, neoclassical and the monetarist approach and the complexity of different interaction of divergent economic factors (Baye, 2007). This is an aspect of economies that is difficult due to the different interactions. However it appears that even the best economists cannot agree, as seen with the disagreements regarding economic policy, and the problems of the government and the Federal Reserve in stimulating growth in the economy.