How People Make Economics Decisions

How People Make Economics Decisions - Economics Pg. 1 How...

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Economics Pg. 1 How People Make Economics Decisions By: Whitney Reeser University of Phoenix
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Economics Pg. 2 In this paper I am going to discuss the four principles of individual decision making, marginal benefits and the marginal costs associated with a decision. I am also going to describe the main attributes of the market economy, centrally planned economy, and mixed economy, and how economic interactions are affected by the type of economic system present. The four principles of individual decision making are: people face tradeoffs, the cost of something is what you give up to get it, rational people think at the margin, and people respond to incentives. People face tradeoffs are to get something we like we usually have to give up something we do not like. The cost of something is what you give up means making decisions requires comparing the costs and benefits of alternative courses of actions. Rational people think at the margin means individuals and firms can make better decisions
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How People Make Economics Decisions - Economics Pg. 1 How...

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