Economic Decisions
Submitted by jbg1944 on December 11, 2011
- Category: Business
- Words: 628
- Pages: 3
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Economic Decisions
How People Make Economic Decisions
Are decisions based our spending habits? In the opinion of others some would say yes while other would say no. As I explain the principles of individual decision-making you will have a better understanding why we make decisions based on our economic status. The principles of decision-making are: People face trade-offs, the cost of something is what you give up, rational people think of the margin and people respond to incentives. Harvard economics professor N. Gregory Mankiw states that these principles of decision making enable us to understand some of the motivational factors in which guide the consumers in their interactions with other...
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