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Principles of Economics in Decision-Making

1) The principles of economics influence your decision making, interaction with others, and the economy as a whole.

Part I: Give one example of how you are personally affected by each of the three areas.
Part II: How were these positive or negative effects?

2) List 3 characteristics of an economists, a scientist and 3 characteristics of an economist as a policy adviser. How do an economist as a scientist and an economist as a policy adviser help to create understanding of economics? Please explain.

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1) The principles of economics influence your decision making, interaction with others, and the economy as a whole.
Part I: Give one example of how you are personally affected by each of the three areas.
Part II: How were these positive or negative effects?

Solution:

Part I:
Economics is a social science which studies the human behavior regarding the three major activities like consumption, production & distribution. In the decision making analysis, Price is in essence the means of communication in the market. By offering higher prices buyers signal their desire to buy more of a good or a resource to sellers. Sellers, on the other hand, communicate the information about the cost of a good or a resource to buyers through price.

For example, if I wish to consume some apples & if prices are very high, then I will reduce my consumption of apples or else I will postpone my consumption of apples. So price of goods & ...

Solution Summary

This job proves how principles of economics influence your decision making, interaction with others, and the economy as a whole.

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