A new house readiness

A new house readiness - A new house readiness By Jacob...

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A new house readiness By Jacob Voogd When making a decision to purchase a new house, one of the economic principles which one must consider will be that people face tradeoffs. If one decides to purchase a new house, he or she will need to give up things such as a holiday, new truck or what they eat which the same amount of money can purchase. In this case, one will need to weigh the priorities. For example, purchasing a new house may make travelling to school and local services more convenient, however it will require one to give up the purchase of a new car which makes travelling to work more inconvenient. Depending on what the decision maker feels is more important, he or she will decide for or against the decision to purchase the house. One of the principles of economics states that trade can make everyone better off. When trade flourishes, it results in a greater purchasing power. In such a case, marginal costs appear small owing to a better purchasing power among people. In this situation,
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This note was uploaded on 03/06/2011 for the course ECO 101 taught by Professor Eric during the Spring '11 term at University of Phoenix.

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A new house readiness - A new house readiness By Jacob...

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