A New House - A New House Decision Axia College of...

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A New House – Decision Axia College of University of Phoenix
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A New House - Decision A home purchase may be for many reason like, first time buying a home, last time buying home for retirement, or buying a home for the sole purpose of an investment opportunity. No matter what the reason is behind the purchase of the home, there are some basic economical principles that should be considered during the process of making this ultimate, life changing purchase. Through the studies of the ten economic principles entailed in chapter one of Principles of Economics, 4 th edition there at a minimum of 6 principles that commonly relate to new home purchasing. I will be discussing principles of economics that directly relate to home purchasing, new home purchasing and the association with marginal benefits versus marginal costs, and how economic strength itself affects these benefits and costs of purchasing the new home. While evaluating the economy strength, I will also cover the effect the economy endures through domestic economy and international trade, along with situations and conditions that could cause me to be lead to make a different decision. In order to obtain something we, want we usually end up giving something else up to obtain it. This is the meat of principle one. When actually thought through these are normal typical decision that everyone makes daily, the only difference is to what extreme the decision is. For most people a new home purchase is one of the biggest life decisions made. In the process of a new home purchase a buyer may make the decision to purchase a nice large home, this creates the trade of higher payments for the buyer for the home wanted. The decision to purchase this home may require a trade off of losing some of the extra-curricular things like eating out, going to the movies, taking a vacation, going to a ball game, etc. Now, if a smaller home with lower payments was purchased versus the nice large home, some of the extra-curricular things may not
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be loss or the ones kept could be combined for example a very nice vacation. Either way one way or another something is given up to obtain either home. Principle two, “the cost of something is what you give up to get it. Decision-makers have to consider both the obvious and implicit costs of their actions” (Principles of economics, 2006).
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A New House - A New House Decision Axia College of...

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