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Unformatted text preview: Assignment #7 Juliet Martin Summaries: #1: “People choose. People choose the alternative that seems best to them because it involves the least cost and greatest benefit. People economize.” #2: “People’s choices have costs – monetary costs and opportunity costs. Opportunity cost is the second-best alternative people give up in making a choice.” #3: “People respond to incentives in predictable ways. Incentives are benefits that encourage people to act. When incentives change, people’s choices change.” #4: “People create economic systems, and these systems influence incentives and people’s choices. How people cooperate is governed by written and unwritten rules. As rules change, incentives change and choices change.” #5: “People gain when they trade voluntarily. People can produce more in less time by concentrating on what they do best. The surplus goods or services they can be traded for other valuable goods or services.” #6: “People’s choices have consequences that lie in the future. traded for other valuable goods or services....
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This note was uploaded on 06/10/2011 for the course MARKETING 3702 taught by Professor Dr.wilson during the Fall '10 term at Florida A&M.
- Fall '10