Friday, 7 June 2013

Reflective Journal - Microeconomics

Throughout the nine week of learning “Microeconomic”, I have a better understanding on how economic works in the world and it actually applied into our real world. I did my basic economic since my foundation year and I enjoy learning it is an interesting and fun subject for me. Although Microeconomics since more tougher in degree but somehow I learnt to cope with it and gained deeper knowledge on it.
In general, economy is a social organization through which decisions about what, how and for whom to produce are made. Besides, there are four factors of production which is labor, land, capital and entrepreneur which enables us to have a better understanding on how these inputs made economic profit through output produced. Conclusion of chapter one is I have more familiar with economic term such as allocative efficiency and productive efficiency throughout the first topic. I learnt to think more deeply and applied it in my future studies such as investment.
What’s more, demand and supply makes me have a better understanding on the market structure and how equilibrium system works. In lecture 2, I get to learnt how people respond to prices and how demand and supply affects prices as well as quantity demanded and quantity supplied. Linking to lecture 2, lecture 3 explores us to the business environment through price elasticity and the important in making economics decisions. After tutorial class, I manage to differentiate price elasticity in inelasticity, unit elastic, or elastic, and range them from zero to infinity.
Different from other lecture, Chapter 4 involves more government interaction and critical thinking. The concept of consumer surplus, producer surplus, total surplus and the effect of tax and its connection with the price elasticity of demand, as well as how price ceiling and price floor affect the market equilibrium help me gaining knowledge on how an illegal market operates enables me to have a better scope of understanding in complex world economy.  Moreover, critical thinking is significant because there required many employers regardless of the job prospect.
Apart from able to distinguish between short run and long run production time frames, I’m also able to describe the law of diminishing return, determine increasing, constant and decreasing returns to scale. I still remember that in lecture 5 & 6, I nearly give up when went through the progressive tough of dealing and calculate with TFC, TVC, MC, AFC, AVC and ATC. Somehow, I get used with it after tutorial section and I believed that it will benefit me in determining the outcome condition of the company I work with more easily through graph, product schedules and product curves.

For some people, the competition world in microeconomic such as perfect competition, monopoly and monopolistic competition might be a toughest subject among all due to its application questions which involve critical thinking compared to management which is just memorizing and applying. For me, in term of reading, learning and understanding, I able to analyse various economic, political, and social issue that had a significant impact on business world. Overall, this module had taught me to be a smart producer and rational consumer while helping me solve uncounted problem when facing economic uncertainty.
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