Explore BrainMass

Explore BrainMass

    Principles of Economics in Decision-Making

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:28 pm ad1c9bdddf
    https://brainmass.com/economics/production-function/principles-economics-decision-making-100055

    Solution Preview

    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.

    $2.19

    ADVERTISEMENT