Assignment 5

Economics and Me

There’s always a question in mind, why study economics? Is it useful? Not knowing that

we perform and apply it already in our daily lives. From deciding what products to buy, what

products to use, how much money should be spent on something and how much money to save,

and many more activities that we don’t know, or even I, myself, didn’t notice that it deals with

economics already, the science of making decisions in the presence of limited or scarce

resources. And when it comes to decision making, we always choose what’s the best and most

efficient for us because we don’t want to waste our money or our resources. However, managing

our resources is not so easy, there’s a lot of things to consider. 

We all make choices, and it’s subject to economics, just like me I always make choices,

some of which are: what’s the best way to go to work/school? ride my own motorcycle where I

will spend 50 for the gas or ride to others and spend 60 for the fare, back and forth. What should

I cook and eat for breakfast, lunch and dinner? Should I proceed to college or find jobs already?

Which job should I choose? What should I do with my money? Deposit it in the bank, should I

buy things or start up a business? If I buy things, what product should I buy? If starting up a

business, what business should I put up? And sometimes, it’s not all about the money, but

weighing different choices, substitutes or alternatives that suits best for us. 

Last 2012, my aunt and tito won a big cash in a lottery and didn’t know what to do with

the money. The total amount they’ve won was Php 500,000. They’ve planned to buy a second-

hand car worth Php 300,000 but my mom advised them to buy a land instead of a car because it’s

a good investment. The land won’t depreciate, it’s price will grow higher and higher in the

future, or just deposit it all in the bank, its also good. The price of the land is Php 350,000, and
they bought it. 8 years later (last January 2020), they sold the land for Php 900,000. They gain

more than half of their money. If they deposit it all in the bank, maybe after 8 years, let’s just say

there’s a 2% interest, it will only be Php580,000. And if they bought a car, maybe after 8 years,

it’s gone or damage or old already. Even though it takes a very long time before they got their

gain (profit), well, at least it’s worth waiting for. Its better than any other options they plan to

make. This situation relates to the time and value of money.  And we have to know the

importance of it because it allows us to make a more informed decision about what to do with

our money. 

Another thing, it is also important to know and understand the market and how it works

especially when you’re in a business, to know how are you going to attack, what tactics to use to

win the competition and become successful. As for my experience being a businessman, when I

was still in elementary, I am selling stickers and rubber bands. I’m the only one selling it in our

place so I was in control to the price. Though I overpriced it, lots of children will still buy

because they have no choice. I sold the stickers for Php1 per 7. The original price is Php5/pad,

and there are 64 in a pad. So, I have Php4 every pad.  One day, one complained about the price

and tried negotiating me to buy a lot only if I will give discounts. So, I gave the stickers for Php1

per 10. I still have a small profit, Php1 per pad, but there’s nothing I can do about it, that’s how it

worked. 

I also tried selling snacks inside our classroom during my high school days; biscuits and

salad. I even sell medicines (biogesic, amoxicilin, mefenamic, saridon, decolgen, diatabs,

ceterizin, solmux). I also sell papers and ballpens. It’s quite a risky business because once the

teacher might hear about it, or the school canteen personnel, my reputation might be in danger. A

student competing with the school canteen. But thanks god, it didn’t happen. Most of my
classmates will buy at me because I sold my products Php2 or Php3 pesos lesser than the

products from the canteen. I did it for my classmates, because I heard them complaining about

the prices of the canteen but of course, I did for myself, to gain extra money.

Though all my experiences as a young entrepreneur, I never imagine that those already

relate and subject to economics. But despite of that lack of knowledge about it before, without

the theory, principle and rules being discussed, I still believe that by that time, I already know

my goals and constraints, I ‘m already aware of the important of profits and I already know how

market works.