Week 1 Individual Assignment - Economic Decisions 1. 2. 3....

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Economic Decisions 1 1. 2. 3. 4. 5. 6. 7. 8. How to Make Economic Decisions 9. Krystal Harson 10. March 22, 2009 11. ECO/212 12. James Kirk
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Economic Decisions 2 13. 14. How to Make Economic Decisions 15. Introduction 16. There are ten principles of economics, the first four are the principles of individual decision making, The next three are about interaction between people, and the last three are about the economy as a whole (Mankiw, 2007). 17. Principles of Individual Decision Making 18. Of the ten principles of economics, four of them are the principles of individual decision making: 1. People Face Tradeoffs-people are constantly faced with tradeoffs; one must trade something of importance to them to obtain a goal (Mankiw, 2007). 2. The Cost of Something is What you Give up to Get it-the cost of an item is more than the monetary value of the item. For example, a pair of shoes cost $100. There are two people about to purchase the shoes. The first received the money for the shoes as a gift, the other worked at McDonalds for 20 hours to get the money. Who is paying more for the shoes? (Mankiw, 2007). 3.
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Week 1 Individual Assignment - Economic Decisions 1. 2. 3....

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