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

Apparent paradox, Explain the apparent paradox that saving money is good fo...

Explain the apparent paradox that saving money is good for the individual but might be bad for the economy. Considering the circular flow diagram how is this relevant to public pol

International trade, why is international trade important south africa

why is international trade important south africa

Inflation unemployment trade off under adaptive expectations, Explain how i...

Explain how inflation unemployment trade off is not feasible under adaptive expectations?

Explain about quantity theory of money, Q. Explain about Quantity theory of...

Q. Explain about Quantity theory of money? One of the main elements of the classical model is quantity theory of money. Quantity theory of money connects three important variab

Abnormal profits, explain the terms abnormal profits and normal profits

explain the terms abnormal profits and normal profits

Describe the concept of economies of scale, Question: Using diagrams wh...

Question: Using diagrams where appropriate, describe the concepts of scarcity, choice and opportunity cost. Distinguish between negative and positive externalities, explain

Relationship between saving and income, The following table contains data o...

The following table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. What is the s

Advantages might a socialist, What advantages might a socialist system have...

What advantages might a socialist system have in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January, 2010?

Payment toward its bank loan, During the year, Calabash Clinic made a $50,0...

During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amoun

Point consumer equilibrium, Suppose that the marginal utility of good A is ...

Suppose that the marginal utility of good A is 4 times the marginal utility of good B, but the price of good A is only 2 times the price of good B. Is this point consumer equilibri

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages