What I took away from week two’s objectives after discussing and the topics that I feel comfortable with are the relationships between productivity and the cost of production. Productivity is being able to bring forth or produce goods and services. Understanding that there are many different types of cost that business’ incur during the production cycle. It’s important for firms, owners or managers, etc. To know about the various costs (I. . Fixed costs, variable costs and total cost).
Also that accounting focuses on explicit cost and revenue; while economics focuses on both explicit and implicit cost and revenues. The topics that I struggled with are the understanding of economies of scale, discomposes of scale and understand the shape or the different reasons that would make the curve shift. The topics relate to my field because in the healthcare industry, the company has to be productive in order to stay afloat and they are constantly looking for ways to lower the cost of services that are provided to linens in order to increase the company’s overall profit.
Cherishes Whittier During week one, we discuss the difference between supply and demand and the affects that it has on prices and quantity. Example of shifts in demand would be taxes, expectations, income, and other goods. Examples of a shift in supply would be price inputs and technology. I believe that I am comfortable with supply and demand; however, I struggle with the graphs and the visuals of the shift. By taking macroeconomics before this class, in ways has prepared me to have a better understanding of microeconomics and how the economy is studied.
Joan Ashcan Gathering from chapter one reading, it states “a key element in getting people to recognize that lunches aren’t free is the concept of opportunity cost-every decision has a cost in forgone opportunities. ‘ The economists’ model which helps you understands not only the opportunity cost numerically and graphically but this model helps us understand why a person specializes in what they do. From this I can apply to why the economy is very important in my personal decision making process because, it dictates my buying power, the market and my investing power.
If the economy is good, sales and Job security will be secure. Paul Parker This week focused heavily on the basics of economics. The topic that interested me most what about the supply and demand curve and what makes them change. We have so many different factors that drive consumers to buy or not buy an item. This is going to be a very interesting aspect of class as we go through the five weeks. Another interesting topic from week one was opportunity costs. We always have to make sacrifices to choose between multiple options. We have to choose the best option that will provide the most benefit at the time.