How People Make Economic Decisions Essays
April 9, 2012
As the focus of the economy becomes dim, economists are tasked with challenges to seek out optimistic measure that will guarantee a future for society. The focal point centers on the lessons of economics. Economics consist of choices made by consumers, business managers and government officials who attain manage their resources for success. An outline for economic success measures will be discussed through this writing, addressing principles of decision making, comparative cost analysis versus benefits, and incentives for decisions made. Additionally addressed will be the attributes of the economic systems (market, centrally planned and mixed) with affects of economic …show more content…
Various incentives could have led to different decisions for continuing my education. Continual pay increases, bonuses, discounts on parking were practical options that could have decreased my choice for returning to college. As the economy became tight within local government, the once highlighted benefits of being a city employee became dim and maintaining employment no longer the secure choice of any employee.
As a whole, the principles of economics relate to decision making processes that are goal oriented resulting in profitable analyses for business. As goods and services are produced in compliance with regulatory consent, consumers will continue to buy, sell and trades in good faith as assurance of equitable practices remain consistent.
Societies are responsible for answering three questions for organizing economics; what, how and when, also referenced as trade offs. In addressing these questions, the answers are noted in various economic systems. First is the market economy, in which the decisions of households and firms interact to allocate economic resources. Next, is the centrally planned economy which the government decides allocation process of resources. Lastly, is the mixed economy which decisions result from the interaction of buyers and sellers in…