ECO212 W 1 Individual Assignment How People Make Economic Decisions Paper

ECO212 W 1 Individual Assignment How People Make Economic Decisions Paper

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
How People Make 1 How People Make Economic Decisions Amanda Stockwell Eco/212 Learning Team C
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
How People Make 2 How People Make Economic Decisions Marginal costs and benefits are two important concepts that govern economics. Marginal cost is important in determining the need to adjust the rate of production. Whereas, marginal benefits are considered as the gain that will be earned if the rate of production will be adjusted. However, both marginal costs and benefits are not mere economic concepts; they are also prevalent in the practical activities of producers and consumers. They play an important role in the decision making of the people. Naturally, the decisions we have always have something to do with the benefits that we gain from something. A simple illustration of this is the basic questions we have before we purchase an item such as “Will it be cheaper if I buy one more thing?” “Will it be cheaper if we produce another item?” “What are the advantages of producing another item?” Technically, people decide based on their reasons. As much as economics is important in decision-making, decision making is also
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/30/2011 for the course ECON 212 taught by Professor Steave during the Spring '10 term at University of Phoenix.

Page1 / 5

ECO212 W 1 Individual Assignment How People Make Economic Decisions Paper

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online