Importance Of Economics In Real Life

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Economics is the real owner of this world; it is an unbiased yet ever-expanding toolkit that applies scientific method to explain a simple phenomenon of how resources should be best distributed. It truly is the human science that can be applied as long humanity exists. Just as the universe is always expanding, the beauty of economics and why I pursue to become an economist is it is dynamic yet powerful; there is never an all-in-one solution, new theory and policy is constantly invented which gives further insights and the bigger picture about the world. Much like the fad that comes with the creation of IBM Watson technology, although economic discoveries is an underrated discipline that cannot steal the spotlight, it is just as significant,…show more content…
Whenever I am out at the street or in different places, I have always had the urge to apply and correlate economics theories in real life. At the Cathay Pacific’s I Can Fly aviation program, I visited the Cathay Pacific Cargo Terminal. Upon seeing sophisticated cargo movements and handling systems, and how the cargo is the anchor for 3.9 million tons of cargo throughput, the cargo forwarding service has no doubt contributed to 2.7% of Hong Kong’s GDP in 2009 (travel and ticket agents inclusive) . But also, Cathay Pacific has been realizing an economies of scope - lowering average cost in the long run- as cargo services account to 30% of Cathay’s annual incomes. The ubiquitous influence of economics does not stop here. As we learnt in Cathay’s headquarter how the computer system processes an air ticket, I had an insight of price discrimination in play for air ticket pricing. Given the same service and class, an airline will highly price a person who booked a flight in one day’s time (visiting sick relatives) than that of in six weeks time, as the former has an inelastic demand. The magic of economics comes as I can always relate to real life examples and feel accomplished for applying different

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