Economics is the science of money but more so it is the science of people and hence it forms part of the social science curriculum. Money is ultimately handled by people and studying human behavior towards money and finding ways and means to improvise this behavior forms the basis of economic study. Monetary policy, Investment, Saving, Expenditure, Gross domestic product, Foreign exchange, Deficit, Inflation and the Budget all forms part of the economic policy of a country.
Economics assumes humans as rational human beings, who will think rationally and act rationally towards human progress. But it does not always work that way, hence we get to see more people doing the wrong thing and reacting to a situation irrationally.
In the era of globalization, the development of world economy is also important for individual economies because change in one economy will have a positive / negative effect on another economy. This becomes a spiral effect and it spreads like fire.
Economic consequences, good or bad, have an impact on both individual and the nation as a whole. Now, it is also important how the nation reacts to an economic crisis? Or how an individual reacts to an economic crisis? Because the reaction is the solution to many problems at the same time: Inequality, Income status, flow of money, Saving rate, Interest rate and so on… If the solution is ignored the economy gets into deeper trouble.
We at A1 tutor take a holistic view of teaching economics by relating to positive/negative impact happened in the past due to economic policy change, or a sub-prime crisis and other issues. Our students are lead to understand why is it important to save? The main reasons for saving and investment in their own personal life are discussed.
Doing this homework is more important rather than merely saying: Net income = Gross Income – Expenditure – Investment/Saving.
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