How to Make Economic Decisions
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- Date Submitted: 03/14/2010 10:38 PM
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How To Make Economic Decisions Paper
Kimberly Crockran
ECO/212
March 2, 2010
Alan Lane-Murcia
There are several occasions in which I had to compare the marginal benefits and the marginal costs associated with a decision that I had to make. For example, I just purchased a new dell laptop computer. Before I purchased this computer, I took into consideration the marginal benefits and marginal costs. The marginal benefit is that I would be spending less time in my parent’s space and less aggravation trying to use the desktop to complete assignments on time because of the number of people who uses the computer. Another marginal benefit is the less time and gas that I spend going to a friend’s house to use a computer. The marginal cost is $584 that I spent on the dell laptop. I will receive the benefit of access to my own computer whenever I need it, less aggravation trying to complete assignments, travel and gas from going to a friend’s house and only pay $25 a month. An incentive that could have led me to make a different decision in purchasing the dell laptop would be if I could have found a laptop at a cheaper price. So the principles of economics affect decision making, interaction and the workings of the economy as a whole by the behavior of the economy, which reflects the behavior of the individuals who make up the economy. Many of our decisions affect not only us, but also other people as well and all of our decisions and interactions together make up the economy.
References
Principles of Economics (4th ed.). N. Mankiw. Thomson South-Western, 2007. Mason, OH, 2007
Kimberly Crockran
ECO/212
March 2, 2010
Alan Lane-Murcia
There are several occasions in which I had to compare the marginal benefits and the marginal costs associated with a decision that I had to make. For example, I just purchased a new dell laptop computer. Before I purchased this computer, I took into consideration the marginal benefits and marginal costs. The marginal benefit is that I would be spending less time in my parent’s space and less aggravation trying to use the desktop to complete assignments on time because of the number of people who uses the computer. Another marginal benefit is the less time and gas that I spend going to a friend’s house to use a computer. The marginal cost is $584 that I spent on the dell laptop. I will receive the benefit of access to my own computer whenever I need it, less aggravation trying to complete assignments, travel and gas from going to a friend’s house and only pay $25 a month. An incentive that could have led me to make a different decision in purchasing the dell laptop would be if I could have found a laptop at a cheaper price. So the principles of economics affect decision making, interaction and the workings of the economy as a whole by the behavior of the economy, which reflects the behavior of the individuals who make up the economy. Many of our decisions affect not only us, but also other people as well and all of our decisions and interactions together make up the economy.
References
Principles of Economics (4th ed.). N. Mankiw. Thomson South-Western, 2007. Mason, OH, 2007