Few 'Economics' Encounters from My Real Life Experience

Strangely, we encounter various principles/concepts of economics in our day-to-day lives about which we may not be aware! 

Here are a few instances from my real life experiences -

1. Recently, I participated in the event of Independence Day in college. I participated in Speech Competition for which all the participants were called from 10 pm and we had to rehearse until 12-1am.  Also the last two days before the main event, all the participants had to stay back until 2-3 am for dry-runs. I realized all those 2-3hours that I lost while rehearsing for the event, I could have stayed in my room and studied for the Mid-Terms instead. In other words, every hour that I spent rehearsing for the event, I gave up an hour I could have studied.

This is a very good example of the principle - “People face Trade-offs”.

Source: Quickmeme

Trade-offs imply that to get one thing that you want, you usually have to give up another thing that you want.

2. I am a movie buff in general, I love watching movies in my spare time, particularly when it comes to super-hero movies. I am a "big" MARVEL fan! So quite obviously, I love the Avengers Series! One of my best out of the 3 Avengers movies that have come up from 2012-2018, my favourite is the first one - The Avengers (2012). I think till now I watched the movie more than 15 times. 

Now to explain in terms of economics, when I watched the movie for the first time in 2012, my happiness/utility derived from it was the highest! As I started watching the movie, again and again, the happiness/utility factor started reducing. And today, if I watch the movie again, I sure would like it but it would not be as exciting/satisfying as it was in the initial stages. This phenomenon is known as Law of Diminishing Marginal Utility. 

The Law of Diminishing Marginal Utility suggests that as you consume/obtain more of a product, the marginal utility that the person derives from consuming each additional unit of that product declines.

These two concepts/principles of Economics are the most common encounters in our daily lives.