How are individual makes choices, Macroeconomics

Assignment Help:

How are individual makes choices?

Fundamental principles behind the individual choices are as follows:

1. Resources are scarce.

2. The real cost of anything is what you should give up to get this

Opportunity cost

This is all about what you have to forgo to acquire your choice.

3. "How much", this is a decision at the margin.

Trade-offs

Marginal decisions and marginal analysis

4. People generally take advantage of opportunities to make them better off.

Incentives


Related Discussions:- How are individual makes choices

SARB, REASONS TO NATIONALISE SARB

REASONS TO NATIONALISE SARB

Money supply nominol income , a small country produces 5000 units of output...

a small country produces 5000 units of output and has a money suplly of $2000. if citizens want to hold 10% of their income in money ie k=0.1 what are v, $gnp, p and real money sup

Supply and Demand, During the 1990s, technological advance reduced the cost...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr

Why are bank deposits money?, Money is anything which is acceptable in sett...

Money is anything which is acceptable in settlement of a debt. But, paradoxically, the main asset used to settle debts in modern economies is other debts. After all, bank deposits

Increase in supply, Explain the adjustment to the new equilibrium price fro...

Explain the adjustment to the new equilibrium price from an increase in supply.

The LM curve asset market equilibrium., what are the factors that shift the...

what are the factors that shift the LM curve what is the real interest rate and the nominal interest rate. what is expected rate of inflation why has the real interest rate that cl

Consumer increases her purchases of compact disks, Suppose a consumer's inc...

Suppose a consumer's income increases from $30,000 to $36,000. As a result, the consumer increases her purchases of compact disks (CDs) from 25 CDs to 30 CDs. What is the consumer'

Macroeconomic analysis, Sims (1980) introduced an exciting and ground-break...

Sims (1980) introduced an exciting and ground-breaking new framework which would prove to be extremely insightful for macroeconomic analysis. This is known as vector autoregression

Calculate the equilibrium levels of national income, Let a macroeconomic mo...

Let a macroeconomic model be of the following form: C = a + bY D                             a = 10 T = T 0                                   b = 4/5 G = G 0

What are economic growth and the growth rate, What are economic growth and ...

What are economic growth and the growth rate? Economic grow: It rise in a country is real level of national output like measured through Gross Domestic Product (GDP). Wh

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd