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经济学是研究人类行为的研究，了解经济可以帮助人们作出更有利可图的行动，即人们想购买更多的香蕉，如果它的价格是低的，而他们不会买任何更多的飓风袭击昆士兰（昆士兰是一个主要的生产香蕉），导致其价格上升。
Economics is the study of all human actions, to understand economics can help people to make a more profitable action, i.e. people want to purchase more banana if its price is low whereas they will not buy any more if a cyclone hits Queensland (Queensland is a main production place for banana) resulting in an increase in its price. More precisely, “Economics…is the theory of all human action, the general science of the immutable categories of action and of their operation under all thinkable special conditions under which man acts” (Callahan, 2004), in order to illustrate this definition, the following flow chat has been generated: 
Figure 1: Illustration of Economics Definition
简而言之，当一个人明白原因（s）在任何不满现状的不安，他或她会开始思考如何摆脱它通过一些行为，比如，行动时是1人肯定能解决的不安，所以利润满意度最终可生成，考虑你能特警或甚至杀死蚊子嗡嗡的避免它；行动2是当一个人不得不从许多可用的解决方案的不安使他或她仍然可以得到满意的最终利益做出选择，这个时候，你需要考虑以下处理已经让你感觉不舒服蚊子的情况做了一个决定，你可以选择移动到其他地方或你可以使用杀虫剂，你可以要求你的朋友得到帮助。无论是什么人愿意采取的行动，最后的结果保持相同的人将从他或她的行动的利润。此外，经济学不仅可以对人们的行为产生贡献，而且可以在每个人的日常生活中解释很多现象。Briefly, when a person understands cause(s) of the uneasiness in any dissatisfaction situation, he or she will start thinking how to get rid of it through some actions, for instance, Action 1 is when the person can definitely solve the uneasiness so a profit of satisfaction can be finally generated, consider that you can swat or even kill the mosquito to avoid buzzing made by it; Action 2 is when the person have to make a choice from many available solutions to solve the uneasiness so that he or she still can get satisfaction as a benefit finally, this time consider that you need to make a decision from the followings to deal with the mosquito situation which already made you feeling uncomfortable, you can choose to move to other place or you can use insecticide or you can ask for your friend to get a help. Whatever the action that the person is willing to take, a final outcome keeps the same which the person will profit from his or her action. Furthermore, Economics can not only have a contribution to people’s actions generating, but also can explain many phenomenon in everyone’s daily life.
Economics has expended my understandings of price setting. After I studied the relationship between supply and demand, I recognised that an equilibrium point i.e. “a situation in which supply and demand have been brought into balance” (Joshua, et al., 2014 ) is vital to determine a price of any good or service that people is willing to have. Taking my personal experience as an example, I am a full-time international student who had finished bachelor degree in RMIT University during last four years and experienced a yearly increase in my tuition fee, furthermore, RMIT University states that “… tuition fee may increase by an amount that will or will not exceed 7.5% each year” (RMIT University, 2015); from economic perspective, the situation can be explained via the following diagram:
Diagram 1: Equilibrium Analysis of Tuition Fees
Research shows that a yearly increase in the amount of international students studying in Australia occurring in last four years, in reality, the number of total international student enrolment raised from 230,595 in 2010 to 247,093 in 2013 (Education, 2015) which resulted in the Demand curve shifting right to the (new) Demand curve, in response, the equilibrium tuition fees will rise from P1 to P2 to reach the new equilibrium point (it has been assumed that education institutions did not create more opportunities to international students which the supply curve did not shift during this process), as a result, the tuition fees increased and the corresponding quantity of international students raised as well (from Q1 to Q2). To quickly sum up, Economics is able to explain price fluctuation through the analysis of equilibrium between demand and supply; additionally, it also can affect people’s decision making.
Undoubtedly, government or policymaker is able to encourage production and consumption via subsidies i.e. “a payment from government, to consumers or sellers, for each unit of a good that is bought or sold” (Joshua, et al., 2014 ), as a result, people’s decision making will be affected through purchasing more goods within a lower price than before. For me personally, an important reason why I chosen Monash University instead of University of Melbourne to continue my master study is that Monash University applied AU$6,000 as a scholarship to me(Monash University, 2015); if I treat this amount of scholarship as a subsidy, from economic perspective, the following diagram can be created:
Diagram 2: Analysis of a Subsidy and Equilibrium
(assumption: the subsidy applied by Monash University is from the Government)
The diagram above clearly represents how a subsidy affect the equilibrium of the supply curve and demand curve, briefly, the supply curve will shift down to reach a new equilibrium point in respond to a subsidy applying resulting in a lower fees that I need to pay to the university and an increase in the quantity of students (from Q1 to Q2) who want to study in the university. As a result, the subsidy has brought benefits to me and the university, in the meantime, it has become an essential factor during my choices. Furthermore, this analysis also reflects the origination of Economics which helps people to make profitable decision.
In conclusion, Economics is a subject about understanding human’s actions then helps them to make some profitable decisions. Two cases mentioned in this essay have showed that how to explain common phenomenon from an economics point of view. Moreover, studying Economics has invigorated me to think the problems or to explain phenomenon from the real life with a more powerful analysing framework. Even though I am still in an initial stage of Economics study, the powerful of economic tools has shifted me from an “exterior observer” to act as an “interior thinker”.
References文献
Callahan, G. (2004). Economics for Real People. Auburn, Alabama: Ludwig Von Mises Institute .
Education, I. o. (2015, 08 19). International Students in Australia . Retrieved from Project Atlas:, Stephen, K., Robin , S., Martin, B., Jan, L., & N., M. G. (2014 ). Principles of Economics (6th Edition). South Melbourne: Dorothy Chiu.
Monash University. (2015, 08 19). Master of Advanced Engineering . Retrieved from General Flyer (Faculty of Engineering):(2015, 08 19). Tuition Fees.
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