When you learn certain topics such as physics or chemistry, you will find that it is quite difficult to make the transition from paper to what happens in real life. In real life you will be able to see the object of your experiment reacting to certain kinds of stimuli, however putting it to paper is another thing entirely. The principles of microeconomics go through the same process, but it is far easier to make the transition. It does not necessarily have to be a decision concerning businesses or firms in order for microeconomics to work its magic. Because the basis of microeconomics is to look at everything from the ground up and put yourselves in the shoes of the consumers, you will be able to make life decisions that aren’t necessarily all business.
For example, try to imagine that you wish to purchase a gift for a good friend. The principles of microeconomics come into play whenever you wish to give your friend a practical gift. Because when practicality becomes an issue, you will need to weigh in certain factors. One such factor would be your friend’s financial state. A practical gift would mean something that your friend would be able to use often. The principles of microeconomics mean that you will have to do a little research in order to make the right kinds of decisions. It also means that you can make decisions yourself based on common sense. If you know your friend well then you will know what that person needs or how they are doing financially. There are also other factors to consider, such as what are their current plans and if they were given a chance to purchase something, what would it be?
In the end, with the principles of microeconomics in mind you might just simply give your friend some money as a gift. That way they are able to make their own decision, which is a thoughtful gesture.