Mka Summary 1

Mka Summary 1 - because they really want it I believe that...

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9/2/2010 MKA 3702 People Choose. People choose the alternative that seems best to them because it involves the least cost and the greatest benefit. People economize. I agree that people purposely choose the best alternative of the least cost with the greatest benefit because as economists say, resources are scarce. When resources are scarce, this causes people to ration their resources. Economizing must not be a way of thinking but a way of life. Individuals must use their resources wisely to avoid wasting them and it only seems logical for a person to evaluate the benefits and costs of a good and then make a decision that is greatest to them. People just want to maximize their satisfaction at the lowest cost. I do believe that under some conditions, people do not act rationally. For example, when a fiscally conscious individual goes to the mall and sees something they do not need but they buy
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Unformatted text preview: because they really want it, I believe that the individual was acting upon impulse and emotions. Once your emotions bet the best of you, then rationality goes out the window. Some other conditions that people may act upon are jealousy, pity or maybe even anger. Another example may be when a student sees that everyone has a certain item, they will be more likely to buy that item because everyone has it. A lot of times it is assumed if everyone has something, then it is going to be the best alternative, which is not always true. In conclusion, I deem this rule to be true to virtually everybody because no one wants to waste resources and everyone wants to get the best satisfaction for the lowest cost....
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