1,650
15
Research Paper, 2 pages (350 words)

How people make economic decisions

The individuals have to make decisions all the time and there is always something to take some time to make sure that the choice will benefit the individual. The same individual has to decide if the decision will cause a monetary burden. Principles of individual decision-making are people make tradeoffs, when people choose one thing they give up something else, rational people think at the margin, and people respond to incentive. People make tradeoffs express by what would choose between items the one that best meets their requirements (Mankiw, 2011).

Margin thinking by rational people consists of making a decision is just over the acceptable choice. Possibilities are that individuals are motivated to a decision by monetary profits (Fox, 2010). In 2005, I had to make a decision about staying at Indiana Department of Environmental Management (IDEM) or seek another job. I had a problem with the supervisor of the department. The benefit at IDEM was adequatehealthinsurance, sick leave, earned vacation time, and days for funerals (immediatefamily). This was a hard decision because of the need to rationalize the change.

In regard to the marginal cost and benefit because there needed to a stressful transfer from the old job to a new job. I believed that the marginal cost was not an issue becausemoneywas not a concern. The marginal benefit was to do have a job that made me happy and relaxed. The principles of economics affect decision-making individuals to evaluate purchases, where to live, what to do with their lives, what to do with their lives, where to work and how many children to have, any other decision that needs to make.

All companies have to decide on good to purchase, project the deficient and profits, make sure that they have employed sufficient staff to produce a product or to provide a service, and to having sufficient vendors to meet the needs of the company. The principles of economy do interact with all lives always by every decision that was thought about and every choice made.

References

Encyclopedia of CognitiveScience. (2005). Decision-making. Retrieved from http://www. credoreference. com/entry/wileycs/decision-making Fox, J. (2011, October 19). Economists respond to incentives. Retrieved from http://www. blogs. reuters. com/justinfox/2011/10/19/economists-respond-to-incentives Hubbard, R. G. , & O’Brian, A. P. (2010, 2009, 2008, 2006). Economics (3rd Ed. ). Boston, MA: PearsonEducation. None listed. (2011). Not titled. Retrieved from http://www. investopial. com/study-guide

Thank's for Your Vote!
How people make economic decisions. Page 1
How people make economic decisions. Page 2
How people make economic decisions. Page 3

This work, titled "How people make economic decisions" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Research Paper

References

AssignBuster. (2022) 'How people make economic decisions'. 15 January.

Reference

AssignBuster. (2022, January 15). How people make economic decisions. Retrieved from https://assignbuster.com/how-people-make-economic-decisions/

References

AssignBuster. 2022. "How people make economic decisions." January 15, 2022. https://assignbuster.com/how-people-make-economic-decisions/.

1. AssignBuster. "How people make economic decisions." January 15, 2022. https://assignbuster.com/how-people-make-economic-decisions/.


Bibliography


AssignBuster. "How people make economic decisions." January 15, 2022. https://assignbuster.com/how-people-make-economic-decisions/.

Work Cited

"How people make economic decisions." AssignBuster, 15 Jan. 2022, assignbuster.com/how-people-make-economic-decisions/.

Get in Touch

Please, let us know if you have any ideas on improving How people make economic decisions, or our service. We will be happy to hear what you think: [email protected]