Faculty of Buddhism

International Bachelor of Arts Degree Programme

Economics in Daily Life

Chapter I Introduction
Arjan Dr. Montra Leoseng
Mahachulalongkornrajavidyalaya University
Wangnoi, Ayutthaya
14 June 2012
Our everyday life is much stranger than we imagine
and
economics is all around..

Movie presentation I: Maeklong market by the railway (5 minutes)

 The application of Economics
knowledge and Buddhism to the
world of practice is my focus!

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Why do we need to learn economics?

Our everyday life is much stranger than we imagine and

economics is all around. People need to develop knowledge
of the economics systems along with a sense of the economic
dimensions of social and political issues.
We should be aware of the impact of economic changes and
roles of economics in daily life. We need to apply knowledge
to the practical issues which arises in the formulation of
economic and social policy, industrial and financial
management, and many other spheres of life by integrating a
wide range of theoretical insights with empirical observation.
We need to understand the theory that explain a broad set
of behaviors.
 Learning Methodology

During the course, you can expect to develop your

skills in understanding 1) complex arguments, 2) the
analysis of practical issues, 3) knowledge of
economic conditions, 4) analysis of data and 5)
effective communication.
Such skills are of value in many subsequent careers, but
particularly in professional, financial and managerial
occupations including professional economists in industry,
government and management consultancy.
 The Meaning of Economics

A study of behavior following the rules of rational

decision making.
The Allocation of scarce resources among
alternatives and across the generations in different
circumstances of living.
A way to think about the world.
how much to spend,
what job to choose,
how much government spends on education,
how much government taxes their citizens and businesses.
Why the government needs to spend
on education?

Investment in human capital through the promotion

of universal and free primary school education is
the key to success in the knowledge-based
economies of the future.
Movie presentation II: Oldest student in Kenya (5 minutes)
Beach Overload! Insanely crowded Haeundae beach in South
Korea

We are living in the world of scarcity and

limited resources which led us to high
competition.
 The Scarcity That Mattered Most!

One of the worlds richest

man, a victim of myasthenia
gravis neurological disease.

Scare of time, energy and the

physical skill needed to carry
out ordinary activities.

Aristotle Onassis
 Everything has a pricethat rises and falls

Jatukham Rammathep
is the name of an unusually
popular amulet sold by some
buddhist temples in Thailand.
It is believed to provide
protection and good fortune
to the bearer. In 2007, the
sale volume amounting to 20
million Baht.
People are increasingly addicting to money, job, profits
and technology.We are living in the world that there are
more iPhones sold per day than people born in the world per
day!
 At the Yunessun Spa in Japan, you can go swimming in tea,
coffee and wine

We are living in the world that is full of choices; so we have to

make the right decisions rational choice.
The most expensive military airplane ever is the B-2 Spirit, a stealth bomber
that costs $2.4 billion.

Is this military
airplane is the
rational choice?

The current economic structures ignore and undervalue

activities that improve the quality of life, i.e., the role of
woman as care giver but emphasize more on the
 Are these bottled
drinking water being
the rational choice?

Bling H2o from New Zealand 3,150 Baht/liter

ISKLDE from Denmark, 567 Baht/liter

Berg from Hawaii 1,890 Baht/liter

Example of Globalization
Increasing number of cross-border marketing alliances.

Making the right decisions means minimizing cost or

maximizing profit. This is where the globalization comes.
Objective and Learning Outcomes

Successful completion of this course will provide learners with:

A sound introduction to Economics in Daily Life.

A wide range of circumstances, how does an individual make a
rational choice between the available alternatives.
An understanding on how can we understand the nature of
social institutions, such as firms and markets, within which
such choices are made?
The analysis of how do these individuals and institutions as
well as the government interact to generate outcomes for
society as a whole?
 Types of Economics
Positive Economics: to uncover the facts and
processes that influence how peoples lives in the
social worlds that come to be what they are.
Finding explanations and identify ways to influence those
very processes to improve the prospects of those who are
hugely constrained in what they can be and do.

Movie presentation III: Vietnam economy (6 minutes)

Normative Economics: make forecasts of what the

conditions of economic life are going to be.
Build an understanding of the processes that shape
peoples lives and develop the policy
Movie presentation IV: Suu Kyi Refugee policy (3 minutes)
 Movie presentation III: Vietnam economy (6 minutes)

From the movie, please explain the economic

situation of Vietnam economy by identify 3
economic issues you found (15 minutes)
 Policy Development: What policies
are needed? What policies are
needed?

Movie presentation IV: Suu Kyi Refugee policy (3 minutes)

 What policies are needed?

Peng Shuilin
The owner of bargain supermarket namely
the Half Man-Half Price Store.
He had half of his body amputated after being run over by a truck.
 Enquiries start from the ground up: from individuals,
through the household, village, district, state,
Economic
country, to Approach
the whole world to uncover the character
of choices and the pathways by which choices made
by millions of households. 20,000THB 2,000 / year
Old age people, 500THB/month
Building Economic Models: the representations of
phenomena to show different aspects of reality work
and interact.
The economic model of world leader in food production
More farmers
More information and knowledge
Develop more productive land/ good soil
Develop agricultural technology
Hybrid seeds
Food processing system
Organic pesticide
Financial incentive
 Economic Models for Policy
Development

Deal with quantifiable objects

Calories consumed, hours worked, tonnes of steel
produced, miles of cable laid, square kilometers of
equatorial forests destroyed.
Mathematical construction
The art of good modelling is to generate a lot of
understanding from focusing on a very small number
of causal factors.
Prediction Power
 Interdisciplinary Approach of
Economics

Economics Involves

History, sociology (Anthropology,

demography), mathematics and
statistics, ecology, geography, and
political science.
Macro-economics and Micro-economics
 Branches of Economics

Microeconomics: A study of how people

choose under conditions of scarcity.
Macroeconomics: A study of performance,
structure, behavior, and decision-making of
the whole economy. This includes national,
regional, and global economies.
 Microeconomics Questions

How do I decide what I should buy at the supermarket?

Given the choice between two items, which do I choose?
Why do firms choose labour-intensive production processes
rather than capital-intensive production processes?
Should I go to university or should I try to find a job now?
Why do stores have sales?
How responsive is demand to changes in the prices of items such
as DVDs, games, movies?
 Macroeconomics Questions

Why do economies sometimes grow rapidly, while at other times

they suffer from recession?
Why, if people want to work, do they sometimes find themselves
unemployed?
Why do economies experience inflation (rising prices), and does
it matter if they do?
Why do exchange rates change and what will be the impact of
such changes on imports and exports?
What is the impact of progressive tax systems on an economy?
What are business cycles and why do they occur?
What is GDP and does it include the informal sector?
 Specialization of labor skill and knowledge
(Division of Labor) yield enormous economic
benefits and make progress to the country.

Employment opportunities for women are increasing.

 Economic Goal
To improve the well-being of the people
Well being wellness, quality of life happiness
richness
Well-being comes from the number of product
(goods or services) available in the economy.
 2TH Assignment Well

Please identity goods and services you

received from MCU (20 items) to measure
your well-being and compare to you previous
study.(10 marks
Emerging Market
Supermarket
Convenient store

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The speedy rise of supermarkets vs convenient
store and their rapid spread

Convenience of shopping
Preference of variety
Attractive packaging
New favours -- McDonalds uses chili
sauce (salsa) on its hamburgers in
Mexico. Coca-Cola is can be sweeter,
or less carbonated.
Supermarket services

Especially the demand for processed food as women

workforce increases.
 Investment and mega-investment

Movie presentation V: Railway from Beijing to Lhasa Tibet (15 minutes)

 Underground Economy

Movie presentation VI: Dog trade (5 minutes)

 GDP or GNH

GDP is a valid measure of human well-being and

progress.

GDP is not a valid measure of human wellbeing as it

does not capture the material wellbeing of society
but rather a monetary wellbeing that usually does
not approximate the average person in society.
 Discussion Topics for Economics in
Daily Life

Emerging market, Supermarket, convenient store

Education for economic growth
Women employment/migrant workers
Investment
Economic crisis and underground economy
The spread of poverty
Externalities and pollution
Self-sufficiency
GNH (Gross National Happiness)
Thank you

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