Question

In 2-3 paragraphs, respond to the following. Your initial post should be substantive and be supported by course concepts.How does the microeconomic environment affect your daily life? What can you do to live a better life after completing this course?

Answer 1

The concept of the microeconomic environment lies around limited resources and the needs of the individuals. These resources are required to spend on various needs that influence the decisions made by the consumers in a market. As a consumer, my financial resources influence my purchasing behavior substantially.

I have my priority needs which need to be purchased first such as food, rent, electricity bills, etc. Whatever remains is to be spent on what I would call luxurious or not-so-necessary items like fancy clothing or electronic gadgets. The money at hand determines the choices I make. For eg - The brands I choose, the quantities I buy, etc. I also tend to keep aside a small amount as savings.

To live a better life, I think what is most necessary is to optimize the resource and use it for productive needs. For example, investment of even a small amount helps in increasing the finances after a period. Therefore, I would be more inclined to invest my savings to yield higher profits in the future.