The Basic Principles Of Microeconomics - 1007 Words

Since economics is a subject that each and every one of us is touched by and take part in, the ten principles of microeconomics can be seen all throughout our lives. Each time we decide to go to a party rather than study, arrive on time to work in fear of being reprimanded, or decide to paint your house to increase its value, you are demonstrating one or multiple of these basic principles. Principle One: The fact that every decision contains a trade-off is not only a basic economic principle, but a fact of life, true on societal level and on an individual level. By definition, if you make one choice, you lose out on the potential benefits of all the other choices you passed up on. If a country decides to put its resources into medical research, less resources will be available for welfare, defense, education etc. There is a plethora of examples I can give from my life to demonstrate this principle. The clearest to me is college. I could have invested the money I have spent on college and could have possible became rich, but realizing the chances of that are slim, chose to go to college instead. Principle Two: Principle two is very similar to the first, expect it is explicitly talking about the opportunity cost of a decision. A great example of this principle in my personal life is the gap year I took after high school. After graduating from high school I decided to repeat my senior year as an exchange student in Belgium. This was the best time of my life and one of theShow MoreRelatedLearning the Basic Principles and Concepts of Microeconomics: A Response631 Words   |  2 PagesI feel that I have learned a lot in this course, and understanding these basic principles of microeconomics has changed the way that I view everyday activities and transactions. I have a better understanding of the key concepts that go into decisions we make, whereas before I think I accepted a lot of everyday decision-making at face value. Now I understand that even if it is subconscious we are making tradeoffs in our decision making. Going into the course I could easily have repeated conceptsRead MoreLaws of Supply and Demand1244 Words   |  5 Pages Microeconomics and the Laws of Supply and DemandECO/365October 13, 2014Professor CoulibalyComedian P.J. O’Rourke said it best when he said, â€Å"microeconomics concerns things that economists are specifically wrong about, while macroeconomics concerns things economists are wrong about generally. Or to be more technical, microeconomics is about money you don’t have, and macroeconomics is about money the government is out of† (Beggs, 2014). On a serious note however, macroeconomics and microeconomicsRead MoreEconomics As An Area Of Study And Research1372 Words   |  6 Pages Economics Name Course Tutor Module Institution â€Æ' Introduction Economics as an area of study and research borrows from the social and scientific aspects of life. The interplay between the two principles helps in the formulation of ideals that influence distribution, production, and consumption. Right from the ancient times understanding and definition of the term dwelled on the issue of political economy. Nonetheless, developments by made scholars in the sector saw the formulation of newRead MoreTen Principles Of Economics And How Markets Works. 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Therefore, a thorough understanding of microeconomics and its principles is vital for effective decision-making. However, since the consumerRead MoreEco365 Supply and Demand Simulation Paper761 Words   |  4 Pages A microeconomic principle that stood out at the beginning of the simulation was the use of the word â€Å"monopoly†. The simulated management organization has a monopoly in the rental field within Atlantis. I considered it to be a microeconomic principle in that it was limited to a certain region. On a macroeconomic scale, it would not hold true because of the fact that there are numerous rental management organizations throughout the world. The second microeconomic principle from the simulationRead MoreThe Inexact Science of Climatology667 Words   |  3 Pages(McKibben Wilcoxen, 2002). The application of microeconomic principles can be used to address some of the fallout of the climate change caused by the greenhouse effect. In this paper we will take a look at three such measures and what their application can mean to the industry. The same way that there are various uncertain factors when accounting for climate change (clouds, ocean temperature, aerosols’ effect, etc.), there are various microeconomic principles that can be applied to help reduce emissionsRead MorePolicy Review And The Lucas Criticisms Essay919 Words   |  4 Pagestightening policies. In addition, new classical macroeconomics further argues that political measures to improve the total output and reduce unemployment have to find ways in the supply part. Therefore, policies work only when they inspire the microeconomic units to provide more products and labors (Grabel, 2000). Under this background, the Luca critique drew attention from the world. Lucas (1976) argued in his article that changes in government policies would result in the changes of parametersRead MoreMicroeconomics Versus Macroeconomics Bus6101627 Words   |  7 PagesMicroeconomics versus Macroeconomics Economics for the Global Manager BUS610-1101C-02 Abstract I want to thank everyone for joining me today to review the effects of microeconomics and macroeconomics in conjunction with the healthcare industry. We will start with a brief introduction of what we will review, and then briefly hit on the subject matter in a bit more detail. â€Å"The world’s largest and most diverse economy currently faces the most severe economic challenges in a generation orRead MoreComparative Study on Consumption Patterns of Soft Drinks and Fruit Juices846 Words   |  4 Pagestherefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlying parameters like: †¢ Changing consumption pattern †¢ Health factor †¢ Status consciousness †¢ Varying lifestyle The basic subject matter of the research, comparative analysis of Soft Drinks and Juices is focused to study the mind/taste of different age group of people. The study starts with determining the major players in the soft drinks and the juices market, their