When you were in primary school, did you ever do this math problem: Master Zhang can sew 3 tops or 9 trousers every day; Master Li can sew 2 tops or 7 trousers every day. The two of them sewed tops and trousers in 20 days. There are 134 pieces of pants. How many tops are there? T

Have you ever done this math problem when you were in elementary school:

Master Zhang can sew 3 tops or 9 trousers every day; Master Li can sew 2 tops or 7 trousers every day, and the two of them can sew in 20 days. There are 134 tops and trousers. How many tops are there?

This question is a variation of the chicken and rabbit problem in mathematical problem-solving thinking, but in the eyes of economists, it is an allocation problem that requires effective choices due to limited resources. The number of garments that the masters can sew every day is limited. If they are asked to make clothes, they cannot make pants. So how should you choose to complete the corresponding tasks within a limited time?

Anne Rooney, Ph.D. of Trinity College, Cambridge University, UK, in her book "Are you the 99% or the 1%?" This is explained in detail in the book "Think Like an Economist" (hereinafter referred to as "Think Like an Economist").

★ What is economic activity

Demand is the minimum necessity for survival. After the demand is met, the remaining money can be used to satisfy desires. Desires are unlimited, but resources are limited. How to rationally allocate limited resources to satisfy the infinite growth of desires has become an eternal topic for economists.

Only when there is demand and desire can there be goods. With the production, exchange and service of goods, the economy comes into being.

Economics is mainly divided into two categories: microeconomics and macroeconomics . The former focuses on the economic activities and decisions of individuals and enterprises; the latter focuses on the economic issues of the country or the entire industry.

★Competition between Internet Economy & Real Economy

In 2012, Jack Ma, the founder of Taobao, and Wanda physical store tycoon Wang Jianlin made a bet of 100 million. Jack Ma believed that in 10 years, online retail sales will account for 100% of society’s total. More than 50% of total retail sales. If he loses, Jack Ma will give Wang Jianlin 100 million. Although it seems that Jack Ma has not won at present, it is obvious to all that physical stores are becoming increasingly difficult to do.

Online shopping saves time, effort and money. More and more consumers choose to shop online. Even for experiential products such as furniture and physical books, consumers are increasingly inclined to just look at them and buy them. After experiencing it, there are many consumers who write down the product number and place an order online after returning home.

Whether it is a self-made brand or a franchise store, the uncertainty of customer flow and expensive rent have discouraged more and more businesses. Unless the store has enough strength like Wal-Mart , it can find low-price purchase channels, reduce intermediate costs, and take advantage of economies of scale to make profits.

Otherwise, just like Huawei , Xiaomi , physical stores are treated as commercial advertisements rather than sales, and physical experience and customer service are the primary purposes of the store. In this way, although consumers do not consume in the store, they go home If you place an order later, you will also profit from your own products. This business philosophy of not selling in-store is the key to their success.

★ Economic related questions

·Why do we pay taxes?

·Do we still need manufacturing?

·Is cash going out of the market?

·Does overseas aid really work?

·How can we benefit from international trade ?

... ...

We have all thought about similar problems in our lives, right? Can you give a simple and correct answer? Economics is a relatively new discipline. Unlike physics, which can verify the authenticity of theories through experiments, it can only rely on constantly evolving economic conditions to explore ways to solve problems.

Charlie Munger said: "You don't need to know all the knowledge, just absorb the most outstanding ideas in each discipline."

" Think Like an Economist " is about the Chinese translation of Lingxi·Think Like. Interesting ideas from the economics discipline.The book gives economists' answers to 24 economic issues that are closely related to us. The language is concise and easy to understand. After reading it, people feel like breaking the shackles of thinking and opening up the cognitive pattern. It is recommended to browse through it while commuting or leisurely, maybe you will master the business password of the future, and you may not be one of the 1%!