The things that we have learned in the previous week were of great help in understanding the diversity of economics and how it has a very significant role in our lives

The things that we have learned in the previous week were of great help in understanding the diversity of economics and how it has a very significant role in our lives. From the financial system to the economic stability and instability, everything has been of great aid in developing an understanding of this field and its important elements. Speaking of what I have learned and how it has affected my daily life, I would say that economics has taught me that everything has a cost. Nothing is free in this world, even if we are watching a free movie; we are paying a cost in some other way. Also, there is a need to consider all the available alternatives before making a decision. All the best decisions that we make in life are based on the correct comprehension of cost and not just the price. Moreover, our decision-making process is enhanced by the cost as it views time, price, and innumerable different subjects under one thought. But one thing that has particularly influenced and fascinated me is the concept of behavioral economics. It involves how people and organizations make economic decisions and what factors affect those decisions. What I have assumed so far from this notion is that people do not make rational decisions and their decisions are mostly influenced by their emotions, surroundings etc and same is the case with organizations. I have learned not to be driven by my emotions or inner biases and to analyze the risks and benefits while making decisions in my life. I try to apply this in the everyday decisions ranging from the time I am spending in my studies to the decisions that I would make in my professional life.