Like other disciplines, economics have principles that guide economists in formulating and making their daily decisions. Economics has got very many different definitions, one of it being the study on how people make use of the available resources (Marshall, 1920). Use of resources determines the economic performance of any business organization or country. Allocation and use of resources thus require certain principles that in many years our best economists have formulated. The performance of an economy is determined by the decisions we make as far as trading activities are concerned. The following principles can give guidelines on how to avoid problems such as scarcity, deflation, inflation, low production and poor performance of businesses and economy in general.
The article Small Business, Big-Hearted Personality ( New York Times, 2017) talks about Ms. Quillen 35, who had voted for President Trump but is now less concerned about politics but rather works towards achieving her goals. She owns a small business in the production sector of the American economy. Despite the biggest challenges she is facing, she did not give up but still held on to her desire and dreams.
Some of the problems she faced include her business got closed temporary but later things turned bright in her favor, and she was able to revive the business again. She had to make tough choices and decisions to control costs and remain in the industry despite high rate of competition that was posed by other competitors (New York Times, 2017)
Ms. Quillen is a good example of principles of economics at work. According to the principle of microeconomics which states that choices are necessary because resources are scarce. Miss Ms. Quillen had to make tough decisions to existing in the global industry with her limited resources. She faced a lot of challenges, but her choices which were bold and the firm made her cling on to the business even when there was no hope. The scarce resources she had made her a small business owner. Among other choices, she made include not wasting her time with national politics but instead devote her full time to developing her business into bigger heights. On the same note, she had set goals for the company one of the most important goals being, providing a better life for the companies employees.
Providing a better life for her employees is in line with the microeconomic principle that states that, resources should be used efficiently to achieve a societys goals. Ms. Quillen is planning to use her resources in building the company and bettering the lives of the other people in the community. A good business should always put into consideration the welfare of its workers and the society in general as denoted by Ms. Quillen in the article.
Finally, it is a customer that gave Ms. Quillen annual orders worth $1.2 million that she was able to recover from her loss and able to revive the company again. This is also about the principle, markets usually leads to efficiency. Without the market for selling your commodities, there will be no trade. Availability of a customer resulted in the effectiveness of her business.
New York Times, (2017). Small business, big-hearted personality. INTimes Insider
Marshall, A. (1920). Principles of economics: an introductory volume. Royal Economic Society (Great Britain).
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