The Principles of Economics in Everyday Life Throughout the duration of this course I have gained an abundance of information. I learnt that Economics study how humans make decision when confronted with scarcity. Scarcity happens when human wants for goods, services and resources exceed what is available (Taylor, 2014). The most important thing I have learnt from this course is the ten basic principles of economics. Out of these ten basic principles, I would like to go into further detail about three main principles and how they apply to my daily life. The first principle I am going to explain is people face tradeoffs. Second, I will go into further detail about principle number three, which is rational people think at the margin. The last principle that will be explained in this paper is trade can make everyone better off. The first principle of economics is people face tradeoffs. In a scarce world people must make choices. When people make choices they must give up one thing in order to gain whatever is
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I learnt that economics is the study of how humans make decisions confronted with scarcity. After completing this course I am able to name the ten basic principles of economics. Out of the ten principles, I have found three that I apply to my daily life. The first principle is people face tradeoffs. This means people must make decisions. With every decision made you must choose which resource to give up in order to gain whatever is desired. Second, rational people think at the margin. Rational people act on a decision if and only if marginal benefit exceeds marginal cost. The third principle I use every day is trade makes everyone better off. Trading something we specialize in allows us to get something we need or want. Specialization and trade allows people to have a greater variety of goods or services. As you can see I have learnt an abundance of useful information throughout this
I learnt that economics is the study of how humans make decisions confronted with scarcity. After completing this course I am able to name the ten basic principles of economics. Out of the ten principles, I have found three that I apply to my daily life. The first principle is people face tradeoffs. This means people must make decisions. With every decision made you must choose which resource to give up in order to gain whatever is desired. Second, rational people think at the margin. Rational people act on a decision if and only if marginal benefit exceeds marginal cost. The third principle I use every day is trade makes everyone better off. Trading something we specialize in allows us to get something we need or want. Specialization and trade allows people to have a greater variety of goods or services. As you can see I have learnt an abundance of useful information throughout this