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Unformatted text preview: Checkpoint-Week1-Economics I am affected through the economy because I am a consumer. By being a consumer I am a part of the system. Through elasticity/inelasticity I am at the whim of whoever is making the decisions at the top with some items [i.e. homes]. The economic principle that defines my decision making is the law of either or. In any free economy, there are two classes of people, consumers and producers. The difference between the two groups lies in how they spend disposable income. Consumers use their disposable income to finance spending on luxury goods like cars, boats, and flat screen TVs. Producers use their disposable income to purchase assets; such as real estate, computers, and fax machines. I plan to become rich, and to get there I must behave like a producer. If the principles of economics are correct they affect everybody's market behavior weather or not they have ever heard of them. When I shop, especially for big ticket items, my budget constraint is my first consideration. I do not look at $50,000 cars or million dollar houses. Nor do I eat in restaurants with $100 consideration....
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This note was uploaded on 07/13/2011 for the course ECONOMICS 101 taught by Professor Smith during the Spring '11 term at Kaplan University.
- Spring '11