Principles Of Economics: Economic Decisions Essay

915 words - 4 pages

University of Phoenix
Principles of Economics
Evanthis (Pete) Mavrokordatos

Economic Decisions

Everyday patrons often make amazingly difficult economic choices in their everyday life, however it has come to terms that is at the present time a large amount of data that support the fact that many times, consumers have are quite badly educated as they make various important financial decisions. In the following paragraphs, this essay inquires into further the questions of who is economically educated by explaining the four principles of individual decision making, an example of a decision I had to made by comparing marginal benefits to marginal costs, also how were the ...view middle of the document...

Rational individuals frequently formulate decisions by weighing marginal benefits and marginal costs. (Mankinw, 2007).
The fourth principle is incentive; this is somewhat (such as the vision of a penalty or a prize)
that persuades an individual to take steps. As rational people make their decision based on weighing costs and benefits, an individual might be more enticed by incentives. Incentives
participate a vital position in the learning of economics. (Mankinw, 2007).
Two almost three years ago, my husband and I discussed whether me going back to school would be a smart idea. Now that I have had time to think about I, we did use marginal benefits and marginal cost to decide whether or not this would be a smart move for our family. When we looked at marginal benefits, we looked at the potential of me having a degree would do to my resume and the wider range of jobs I could apply for. Would I be able to keep up with the work load I would be given. Would it be too much for me to handle, with being a stay at home mom and student and all of the volunteer work I do? We agreed that the marginal benefits being as hard as they are I would be successful in achieving this degree. When looking at the marginal cost we had to research exactly how much I going to school would cost us and could we afford to do it. As said previously before I am a stay at home parent and am not gainfully employed and my husband was the only one working. Would we be able to get financial aid for my classes. In the end after at least two weeks of talking and the obvious decision was for me to start attending...

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