The
nature of economics reasoning can be varied nationally and institutionally.
This happens because of the social, common practices, laws, policies, political
situations as well as geologically. In order to lay out the better policies or
to develop the economic system, the nature of economic reasoning, the making
decision by comparing the costs and benefits, is needed to be understand well.

1.     
What
is Economic?

 (Roynolds, 2007)According to the archeological and
written records of humans’ history, obtaining the materials means to satisfy
the wants is a continuing problem to the humans. Though both foods and shelters
are the basic requirements of a human life, as the civilizations rise more and
more advancing, not just the needs but the others goods become partial needs
and partial wants to fulfill the desire of humans. And studying the way how
that humans deal with these issues and challenges become known as “Economics”.
In another words, according to the Economists, “Economics” is the study
of how the limited resources are allocated and how the choices to make maximum
outputs with minimum inputs or resources to fulfill the needs and wants of
humans.

(Gordon)Due to this concept,
minimizing inputs and maximizing output, people do the economic reasoning in
everyday life. Using this economic reasoning, decisions are made by comparing
marginal costs, the additional cost over and above cost already incurred and
marginal benefits, the additional benefit above and beyond what has already
accrued. Therefore, for generally and rationally, if the marginal cost is below
the marginal benefit, then the decisions are made while if the marginal cost
are beyond the marginal benefit, then the decisions are not made.

2.     
Opportunity
cost

 

 (Gupta, 2011)Equation
of marginal cost and benefit is only true for small cases but if for the
co-operations, enterprises and firms, this equation cannot be true. In another
word, if the decisions are made for short term, like buying clothes or daily
uses, then this equation is perfect but if for the long term or strategic
planning, choosing career life, investing getting married or not, then this
equation should not be applied easily due to the opportunity cost. For

example,
Bill Gates left the collage and started the Microsoft. And here, opportunity
cost, that should already be less than the benefits of what have chosen, become
one of the basic facts of the nature of economic reasoning.

3.     
Taking
Risk

 

(Gupta, 2011)Another facts of the
nature of economic reasoning is known as Taking Risk. Though, taking risk is a
bit seen similar to the opportunity cost, this concept is more practical than
the opportunity cost. Due to this concept, the governments of each nation
choose different module of economic designs such as free market economy, social
market economy, command economy, mixed economy, etc.

4.     
The
Choices of Economic Designs

 

 (Stanislaw, 2002) (Gupta, 2011)And again, the
choices of economic designs, commanding heights, are also based on how that
nation was formed up and constructed, both by informally and formally, as well
as the experiences of that nation. In another words, Commanding Heights or
Choosing the economic design can be varied on the populations density, social

designs,
and background.

(A History of the U S Economy, 2010)For example, why
United States of America chose the free market economy while Myanmar chose
socialist economy design? And this answer relied on the history of both
nations’ backgrounds. The constitution and the nation building process of
United States of America was led by landowners and those with huge businesses
backgrounds. And, on the other hands, the independence of United States was
happened mostly due to the economic pressure from British Government. As most
of the statesmen of United States are from wealthy and landowners, the design
of economic chose was free economy markets until nowadays thought it faced
great depression for several time.

(Taylor, 1987)Unlike that nation,
Myanmar was a different story. Before 1885, the economic design of Myanmar was
a bit tend to be known as traditional but later 1885, due to the colonization
system, the design was change and again, after the 1962, the economic design was
changed to socialist economy. This is because during those days, the country
was facing arm conflicts with Burma Communist Party, Ku Ming Tang from China
and Ethnic Armed Groups. And due to the lack of peace and many conflicts, the
Government decided to take control the market and started the socialist
economy. And later in 1988, the economic design was changed again to market
economy due to the changing of global trend and public demands.

5.     
Conclusion

 

 (Acemoglu, 20016)As
both types of economy level, Macroeconomic and Microeconomic level, are
controlled by three forces of economic forces (the invisible hand), social and
cultural forces and political and legal forces, while the macroeconomic level, the branch of economics that
studies the behavior and performance of an economy as a whole, focusing on the
aggregate changes in the economy such as unemployment, growth rate, gross
domestic product and inflation, was managed by governments and the
microeconomic, individuals,
households and firms’ behavior in decision making and allocation of resources
that applies to markets of goods and services and deals with individual and economic issues, Economic Reasoning, the
making decision by comparing the costs and benefits, can be varied daily and
several times.

According
the historical facts, the thinking designs of economic reasoning can be changed
gradually due to the globalization trends, war, rises of new technologies and
social behaviors. For the conclusion, the nature of economic reasoning. depends
on the economic institutions, that can be varied according to the nations, such
as law, policies, social, common practices, religious ideology and background
of that nation can be varied from time to time.