REFLECTIVE JOURNAL

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1.0 Introduction:
Hello, I'm Mahi. Its really been an interesting journey on academic terms as I started my
career with electronics engineering and ended up pursuing my masters in business
information and logistic. Currently I'm doing graduate certificate of commerce which is
pathway course for my postgraduate.
It was very difficult to uncover different units which are Introductry to accounting, Data
analysis and decision making and application of economics, these units I had never studied
before. So, in this assignment l kept my focus on application of economics and how does it
relate to learning goals of UWA

In economics, we mainly study that, how a business farm, institute, government or even an
average person allocates resources (Cooter & Ulen, 2016). However, here the support not
only means the dollar or cent but also means the skill, time and land.

2.0 Division of economics

Economics has two main categories namely: macroeconomics and microeconomics.
Macroeconomics includes all the techniques to analyse the total output change,
unemployment and employment rate, import-export rate. When macroeconomic policies get
much more attention in the media, microeconomics deals with the direct application of day to
day problem of the managerial level. It mainly focuses on an individual's behaviour in the
economic stage. Managerial economics is a part of applied microeconomics that it primarily
deals with the topics which have great importance and value to the managers.

3.0 Application of economic principles on business farms

As an outcome of this project, I came to know about various aspects of the economic policies
and their practical applications. Some of them are stated below;
1. Economics presents a clear picture of business farms behaviour and principals in a
business management system (Chetty, 2015). By using the managerial economic
principle, one can easily understand the real-life practice of a firm with its simple
assumptions on economic policy. (news.com.au 2019)
2. There is a different concept of profit, loss and cost by accountants and economist.
While economist considers the opportunity costs, accountants focus only on the exact
cost. However, in managerial economics, a reconciliation of the viewpoint of the

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 economist and accountants are made so that the cost profit statistics can be
appropriately utilized for decision making and future planning of a business farm.
3. Business farms give particular importance to forecasting. Economic element's mutual
relationship can provide accurate prediction ( Emanuel et al. 2016). The cost-output
relationship, demand elasticity, promotional elasticity and many other concepts of
economic science are considerably helpful for accurate forecasting.
4. Many economic concepts like profit, capital, price, demand and investment have great
significance for the business farms, as the decision-making task accomplishment
depends on these economic statistics. That means economic statistics have a direct
impact on managerial decisions.
5. Along with microeconomic statistics, macroeconomic concepts like national income,
government economic policies also have a significant impact on business firms and
business managers. The managers often have to adjust the business operations with
the concept of macroeconomics also.

4.0 Application of economics in daily life

Economics has a significant impact on everyday life and budgeting of family expenses.
Opportunity cost- Economic has a lesson for scarcity and limited resources. Suppose, we are
using our limiting resources for a particular good of need, so we cannot spend that resource
on other products for our entertainment. Opportunity cost is an essential aspect of economic
choices. (www.theguardian.com 2019)
Buying goods for a satisfactory high price- Under the marginal utility principle of
economics, a person can find out the amount of satisfaction (utility) he is getting from that
good or service in comparison with the price.
5.0 Application of commercial economics
1. Modern economics is in many ways related to microeconomics. It a study of the
operational principles of the microeconomy branch (Tarasova & Tarasov, 2018).
Business farms and managerial economies slowly depend on the case analysis of the
industrial marketplace.
2. Industrial economy gives weight to the environment to take decisions mainly by the
business firms and institutes. This provides knowledge of national income,
government policies and many more in this context.

6.0 Importance of economy

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We live in a society where the study of economics has a significant impact on our life as well
as on the industry. Excess wants over limited resource brings the fundamental scarcity
problem. Scarcity brings the choice of production and decides the final consumer of the
products and services. Economics helps in this matter for determining those scare resources
allocation to satisfy the needs of an individual at its best (Oetzel & Miklian, 2017). Without
dipper, investigation economics can calculate the inequality degree within a specific
environment and helps to reduce that inequality. It also helps the businesses to decide the
profit margin and the government to determine the welfare policies for its citizens. It also
helps us to address the poverty problem and its type, cause and effect. It provides a
mechanism for dealing with the possible consequences of a shortage of raw materials (Zhang
et al. 2017). Modern economists are also examining social issues for an economic problem.

7.0 Conclusion
The economy is essential for accounting the earth's resources, which are very limited in
comparison with human need. Careful study is critical to know the allocation process of
government, society, businesses, households and even of the individuals. Since the research
involves distribution process of limited resources, market statistics and understanding of
various policies, it gives us a clear overview of the latest environmental condition and how
we can distribute the strategies for better implementation of the pricing for the goods and
services.

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Reference List
Book
Cooter, R. and Ulen, T., 2016. Law and economics. The USA; Addison-Wesley.
Journal
Chetty, R., 2015. Behavioral economics and public policy: A pragmatic
perspective. American Economic Review, 105(5), pp.1-33.
Emanuel, E.J., Ubel, P.A., Kessler, J.B., Meyer, G., Muller, R.W., Navathe, A.S., Patel, P.,
Pearl, R., Rosenthal, M.B., Sacks, L. and Sen, A.P., 2016. Using behavioral economics to
design physician incentives that deliver high-value care. Annals of internal medicine, 164(2),
pp.114-119.
Oetzel, J. and Miklian, J., 2017. Multinational enterprises, risk management, and the business
and economics of peace. Multinational Business Review, 25(4), pp.270-286.
Tarasova, V.V. and Tarasov, V.E., 2018. Concept of dynamic memory in
economics. Communications in Nonlinear Science and Numerical Simulation, 55, pp.127-
145.
Zhang, K., Kleit, A.N. and Nieto, A., 2017. An economics strategy for criticality–Application
to rare earth element Yttrium in new lighting technology and its sustainable
availability. Renewable and Sustainable Energy Reviews, 77, pp.899-915.
Online article
www.theguardian.com (2019), Importance of economy, Available at:
https://www.theguardian.com/business/australia-economy [Accessed on- 24-04-19]
Websites
news.com.au (2019), Study on economy, Available at:
https://www.news.com.au/finance/economy [Accessed on- 24-04-19]