Finals Week. A week of stress and sleepless nights. Busy, sabaw, tulala, isnaban, haggardo versoza, warla, and sometimes walang ligo ligo week. LUTANG.
But! We can still refresh our appreciation and love for economic concepts for their own sake despite the Hell Week.
There are four economic concepts that are illustrated in Finals Week.
As you know, efficiency is central to the study of economics. Studying for an entire semester worth of lecture notes needs hard work and good use of time. Integrate and review lecture notes. Make a list of key topics, concepts, problems, theories, and terms. Answer problem sets, workbook problems, and sample exams. When the most desired activity during finals is over (sleeping), it’s time to study again. Stay awake and stay alive!
Law of diminishing marginal returns
Scrutinizing every single chapter? Wanting to get the highest mark? Hardcore GC? These can be illustrated by the law of diminishing marginal returns. As more units are consumed, the marginal benefit from an additional unit will eventually decline. There may come a point when another hour of studying would reduce your exam score. How about sleeping for the next 3 hours after 21 hours of studying? Hmmm.
No sense of time? Often sleeps late in the night? Watching movies and scrolling down Facebook profiles?
Another economic concept illustrated by Finals Week is of course, opportunity cost. the cost of an alternative that must be forgone in order to pursue a certain action. Had you not watched movie or stalked your crush, you would have studied for your exam. The opportunity cost of stalking or watching a movie is the hours of study time lost.
Perhaps the real economic lesson is the reason why we ought to study. Studying is a good illustration of signaling theory. In economics, signaling has to do with conveying information from one party to another. Think of the reason why you are studying hard. We are to give back to our country. Studying well for your exam signals you are serious in being an Iskolar para sa Bayan.
Happy Finals Week! Do your best and may the odds be ever in your favor!