Using the Economic Way of Thinking handout, discuss how three of the ways of thinking are applicable to your life. Your response should include examples and an explanation for each.
The first way of thinking that is applied to my life is incentives matter. whenever i want to buy something i always look at why i want to buy it. one example of that is if i want to buy a new keyboard i would look at all of the parts of it; how meny keys it has, hoe many sounds it has, can it plug into my computer, ect. the secend mode of thinking applied is everything has a price. on my ipod touch i will often buy an app thinking "its just one doller" but latter i will realize i spent alot of money on little games that i could have saved for a bigger purchase. the finnal way of thinking is economic thinking is marginal thinking. way back in my younger years i would collect trading cards. i always wanted to get one more set of cards. by the end of my unhealthy obsesion i had more cards than i could count because of my marginal thinking.
A lot of economic points relate to everyday life. One that relates to mine is that people choose for good reasons. If I go to the mall and see a blue shirt with buttons in one store for $10 and a lighter blue shirt with buttons at a different store for $20, I’d buy the darker blue shirt. If they both have my size, and look good, I won’t choose the lighter blue simply because it’s lighter. I’d choose the better price. So, people choose for good reasons. Another is that people gain from voluntary trade. Say I’m sitting at lunch with a tuna sandwich. I hate tuna, but my best friend with a peanut butter and jelly loves it. I’d much rather eat the peanut butter and jelly than the tuna my mom forgot I hated. So, I trade my sandwich with my best friend who loves tuna, so we both gained a sandwich we liked from our voluntary trade. Last is the test of a theory is its ability to predict correctly. My theory is that if my friend and her boyfriend fight one day, they will break up that day and make up the next. So one day, my friend and her boyfriend were yelling at each other in the hallway. She seemed very upset, and later that night, I got a call from her, crying. They broke up. I comforted her and told her I thought they’d be back together in no time. Sure enough, they were walking down the hall, holding hands the next morning. So my theory was correct, but I never would’ve known if they didn’t fight in the first place. So by testing the theory with them fighting, I discovered I was right because they broke up that day and made up the next day. Therefore, all economic points can be related to everyday life.
The first economic way of thinking is that everything has a cost. An example would be if you bought a candy bar before you checked out at the store; the dollar you spent on that candy bar could have been used to donate to a charity and save someone’s life. This is the cost of using the dollar to purchase a candy bar. It applies to my life in the way that I constantly have to weigh the costs against the benefits. The second economic way of thinking is that people choose things for good reasons. No one will choose something if they don’t think they will gain some utiliy from it. In my life I try to choose things only if I’ve thouroughly researched it. This way I know the right choice. Finally, incentives matter. If someone has a good enough incentive to do something then they will most likely do it. In my life, teachers often provide incentives for students to work harder. This increases the chances they will do it.
1) Everything has a cost. In Economics, there is no such thing as a free lunch. You have to consider the factors such as paying the farmer to raise the food, truck delivery, chef prep, and the server. The other day I saw a commercial that offered a free flashlight when you bought a snuggie they were trying to sell in the next ten minutes. However, the free items probably weren't as free as I thought. The business had to pay the workers for manufacturing the flashlight, they had to pay for the materials that the items are made with, and they had to pay the delivery guy for shipping it. The business can't be giving away free items without losing profit, so they probably regain this profit by jacking up the price in the snuggie. 2)Economic thinking is marginal thinking. In economics, we have to weigh the marginal benefits and the marginal costs. When I was looking for a tennis racket online the other week, I had narrowed my choices down to three options. I could either get a basic $150 racket, I could get a pretty good racket for $175, or I could get the best racket for $200. In choosing this, I had to weigh the marginal costs versus the marginal benefits. I came to the decision that since I play tennis competitively and that I derive a lot of utility from having the greatest performance possible, I was willing to pay the $200 for the best racket. However, if there was a racket that was somewhere around $300, I would probably have chosen the next best one, because the marginal cost of paying $300 for a racket would not meet the marginal benefit of playing with that racket. 3)People gain from voluntary trade. In economics, countries trade with one another in order to better the economy. Both countries are looking for goods that will hopefully benefit their country more at the expense of the export that we are giving to them. If we, as a nation, are very productive at making tennis rackets, then we should look to trade with a nation that wants tennis rackets, and in return, we should ask for something that will better our nation. Since both nations are trading their productive resources, we all benefit and our economy grows. On a smaller level, the other day my friend broke the strings on her tennis racket. I told her I could restring it for a small price. In return, she gave me a ride to school for the next week. Since I don't have a car, and she doesn't know how to string a racket, we both benefit from the situation.
Incentives matter is something that is appicable to my life since the we are not in great economic times I must very carefully decide on what it is that is worth buying and if it will last for a long generation of time. Such as right now I am looking for a good deal for a new(used) car for me that is going to last for aleast till the end of college, my incentive thinking.
Everything has a cost is one of the economic ways of thinking that is also very applicable to my life since obviously everything has a cost at some point. No matter if it is being manufactured, the items are being gathered, or if the item is being sold. So the when someone wins something for free it has obviously been payed for something in the objects "life."
People create economic systems to influence choices and incentives is also one that is being used by myself since I need ALOT of money for a car, college, and many other obsecessions and hobbies. So the bank is a system that influences me to put the gathered/saved money in the bank for me not able to spend on worhtless junk. When I have enough money saved up I prefer to put it in a cd in a bank so that I could get access to my money till after that certain time limit is reached and that cd also gives me a higher interest rate since I have no access to my cd for a certain period of time.
1. Everything has a cost. This relates to my life, because every decision I make to spend money takes away money I could be spending on other things, either now or in the future. Even if my parents pay for me, it would seem free to me, but this is untrue, as my parents now have less money to buy something either for themselves or for our family. 2. People choose for good reasons. I know this from personal experience, because everyone makes hundreds of decisions every day. Even if someone decides to spend all the money they saved for college on a car, a tv, and a boat, they still chose for good reasons. Even though this is probably not a good decision in the long run, this person chose for good reasons, because they decided they would enjoy these products right now more than the extra money from their education later on. 3. Incentives matter. Most people would be able to tell you this, because almost no one just does thing without having a reason. Someone could be dancing alone in the park with no music playing, but they still have an incentive, either that they enjoy scaring people or they really enjoy dancing. Incentives also cause people to do things they might not want to do otherwise. Homework is not high up on my list of things to do, but I do it because I have the incentive of not failing the class, which is pretty high up on my list of things to do.
1.) Everything has a cost. If I decide to stay up until one o'clock in the morning on a school night to be on Facebook, then I'll be really tired the next morning. I could have been using those hours on Facebook to sleep instead. Being tired is my cost for wasting time on Facebook. 2.) Incentives matter. If I'm playing a tennis match and I know that Coach T won't make us run the next day if we win the meet, then I'll play more aggresively so I can win my match for the team. My incentive to win the match is knowing that I won't have to work as hard the next day at tennis practice. I am gaining utility from playing harder. 3.) People gain from voluntary trade. If I'm in the lunchroom and I have a turkey sandwich for lunch and my friend has pb&j, but neither of us want our sandwich, then we can trade. If we trade, then both of us will derive utility from our new sandwiches. We will both enjoy our sandwiches more and therefore, our lunch.
1.) The first topic that I am doing is that everything has a cost. Nothing in this world can possibly be free. Some things may not cost any money, but it can cost other valuable resources. When you are giving someone a gift, they may be getting it for free, but there is still a cost. Lets say the gift is everyone’s favorite. Socks. The socks have the cost of labour from the work of picking the cotton or wool and also the work of making them. There is also the cost to you for buying the socks. An example for my life would be a gift. I usually give my friends a video game or simply money, which costs me time and money. 2.) My second topic will be incentives matter. Incentives are a very powerful influencing tool. Incentives can make the difference in a consumer buying your product or the competitors. Incentives give the consumer a little extra or a push to buying a product. An example of an incentive would be if a consumer bought your product, then 10% of the perchase would be donated to the starving children in africa. This will appeal to the philantropist side of people and make the feel like they are making a difference. This connects to my life when the breast cancer shirts were on sale and a certain portion of the sales would go to breast cancer. 3.) For my third topic I will talk about how peoples choices affect goods and services. Peoples choices greatly affect goods and services in a market economy. This is because the economy is based on the consumer. If the consumer prefers product A over product B, then the company who supplies product B will either lower their prices or increase the quality of the good. This shows that by peoples choices are monitered by companies to try and best one another. Peoples choices can also influence the supply of a product or service. This is connected to my life in the videogame department. I chose an X box over a WII because I believed it was of much better quality. My choice alone isn’t enough to effect the whole market, but mine compared with many others can.
Everything has a cost. If I decide not to do my homework, I may have some free time. However, I ultimately lose a grade in the grade book which will ultimately hurt me in the long run. While it’s a little servere, That grade may have been the difference between say Northwestern University from Indiana University. By that, I may not have as many job offers or make as much money wherever I may work. This in a long run may affect economic growth of the country, as I won’t be pumping as much money into the economy. Incentives matter. In chemistry honors, formative assignments have a 0% weight in the grade book. By the same measure, Tests and Projects are worth 100% of my exam. To some, doing homework may seem redundant in that they don’t carry any weight in the grade book. However, by doing this homework and other work in the same subject class, I make myself that much better off on my test. If the class was not a credit class, however, and I wasn’t interested in the subject I would really have no reason to work to the potential of that class, namely because it doesn’t benefit me in the long run. People choose for good reasons. Choice occurs every day for everybody. I choose to get out of bed on time. I choose to make the most of my day and pay attention in school. All of those choices positively affect me and others. I get out of bed on time so I can go to school and someday contribute to society in an adult matter. Eating breakfast takes food, which is purchased from and benefits others and me. Paying attention in school benefits me by education and others by affecting test scores, boosting school education ratings, giving people incentive to move near here and ultimately pumping more money into the education system and the local economy.
The value of a good or services is affected by people's choices. – If somone has hated cleaning their whole life and chose to not clean their house or room, a maid would seem like an excellente service because it does the job that they do not want to do. I have disliked cats over dog my whole life, so in my mind I think the same price for a cat and a dog, the dog would be a better deal. People choose for good reasons – I would not go out and buy a projector to present power points and other pojects if all I used it for was to view my projects before handing them in. I would rent a DVD over buying a movie because the DVD is much cheaper and if I don’t enjoy the movie I can return it. Everything has a cost – I live close to the school so I can walk, most days I walk because I see walking as being cheaper. When I walk I used more energy but I save a lot of time and comfort (buses can get very hot in early fall). I feel walking is cheaper because it is quicker and more enjoyable than talking a bus.
1. Everything has a cost. This applies to my life because when I want to get something, I have to pay attention to the cost of the item. It is good to remember this because I wouldn’t want to waste getting, when I can save it up for something better and more practicle. 2. People choose for good reasons. This applies to my life because when I buy something, it is usually for a good reason. If there wasn’t a good reason, then there is no point in getting it. If everyone in the world bought things without good reasons, we’d be stuck with a lot of useless junk. 3. Incentives matter. For every A I get in a class, my parents usually give me $10. That is part of the reason why I try to get good grades every year and it gives me an incentive to get them. Without having an incentive to do something, many things would not get done.
1. Everything has a cost: The meaning of this is that whether or not you get something for free or not it will always cost someone money. A free lunch is bought by the government which will cost everyone in society when they pay for taxes. I can relate to this because when I am in athletic council, although we may not have to pay for our free pizza, the school still has to buy it for us. Therefore, there may not be a cost in our eyes but the school still has to pay for the pizza that we buy.
2. Economic actions create secondary effects: This means that whatever people decide to buy or sell that day will change the economy in some way. If people decide all of a sudden that they love milk, then the price of milk will go up due to low supply. If half of the world turned lactose and tolerate, then milk wouldn’t be popular and the price would go down due to high supply and low demand. This relates to my life because the salary of my parents directly relates to my salary. If my parents both lost their jobs one day then I would probably also have no allowance anymore. Since they are not gaining any money, then I wouldn’t gain any money either as a secondary effect.
3. People Gain from voluntary trade: Since the world is no longer independent from other countries, most countries will need trade. If one country is good at making a certain good, but are in need of another good then they will trade with someone. The same goes in my life. If I have two erasers in class but I don’t have a writing utensil then I will ask someone to trade with me. And if I’m lucky enough to find someone who needs an eraser but has a pencil then voluntary trade has been done.
1.Everything has a cost, for example on Christmas teens think they get free presents that they didn’t buy but technically it did cost them but not directly. Since their parents bought them the gift or their brother did it took away from something they could have gotten later on, take a soccer shoe for example you could buy the best shoe on the market but 3 months later they won’t be the hottest or best shoe on the market and probably cheaper. If you would have waited you could have had them buy you a better shoe or the same shoe for less. Therefore you will always have to pay for something even if you don’t think you spent money on it, like those commercials that sell paints or something, “BUT WAIT! IF YOU CALL IN THE NEXT 10 MINUTES YOU GET ANOTHER PAINT BRUSH, ABSOULUTLEY FREE!” But then they say quickly, “Just pay shipping and handling.” So technically it’s not free your just paying in a different way. Everything has a cost. 2.People gain from voluntary trade, on my soccer team kid’s trade their used shoes for other gear like a ball or something, and the parties who had decided the trade both gained something they wanted and gave up something they didn’t necessarily need and or want. Therefore both kids will be happy and positively gain from these types of trades. 3.Incentives in economics matter! For example take real estate into account, last year the government was offering an incentive when you buy a house. For first time home buyers you would receive 8,000$ at the end of the year in rebate because you bought your house first time and this put housing sales way up, and now this year the incentive is no longer in effect and the sale of homes isn’t as high as it was last year. Same thing applied to second time home buyers, they would receive 2,000$ at the end of the year in rebate. Incentives defiantly matter to the economy.
1.Everything has a cost. In the economic point of view, everything does have a cost. Like Mr. Wheelan said in Naked Economics, everybody is trying to maximize their own utility. People don’t provide goods or services for free because it desn’t make them better off. For example, if I go to a store I can’t just pick out my favorite shirt and take it home. I have to pay for it because if I didn’t the store would be worse off than before. If I pay for it than the store makes money and I get a new shirt; so it’s a win-win situation. 2.People gain from voluntary trade. Trading is so successful because it is also a win-win situation. It allows us to get things we wouldn’t have, or can’t produce on our own. But instead of paying money we pay with goods that the other party can’t produce on it’s own. For example, last year for Christmas my aunt gave me and my sister pajama pants. Mine had Minnie mouse on them and my sister’s had snowflakes. But, my sister liked the Minnie Mouse ones and I prefered the snowflakes so after we left my aunt’s house we traded. This made us both better off because we both ggot our favorite pair of pants out of the two. 3.Insentives matter. Without incentives no one would be motivated to produce. The reason Producers make goods or provide services is that they get something out of it, usually money. So in that case money is the insentive and maybe the producer is saving up for a new house or a car, which are also examples of incentives. My mom usually gives me incentives to clean my room or help her around the house. If cleaning my room results in going out to dinner then I clean it better and my mom is happier because she can’t stand a messy room. So in the end, we are both satisfied.
1. My first way of thinking is incentives matter. Incentives matter means that if someone doesn’t have a legitimate reason to do something, then they won’t do it, and vice versa. This applies to the real world in that if a company doesn’t pay their employees enough for what work they are doing, they will go on strike or leave. This applies to me in the same way, if someone offers to give me five dollars to mow their lawn, I wouldn’t have an incentive to mow it if it was a big lawn, but if it was a very small lawn I would have the incentive to mow the lawn. 2. My second way of thinking is people gain from voluntary trade. This means that whenever people trade with another person they always get something of equal or greater vaule in return. In the world people trade money with other people in order to get a good or service. They also make sure that they give a fair amount of money for the goods or services they are receiving. People would not make the trade if it would be a bad deal for them. This applied to me when I was a kid and into all sorts of trading card games. I wouldn’t trade a card for my friend’s card if I wasn’t getting something fair in return, and in the end both of us were better off because we got what we wanted. 3. My third was of thinking is that the value of a good or service is affected by people’s choices. This means that competitors have to change prices or quality when the other company is beating them in sales. An example of this is if Coke was out selling Pepsi they would have to either make their soda taste better or lower the price of their soda if they wanted to get up to the level that Coke is at. This applies to me when buying a bike, if company A makes a much better bike than company B and they’re both the same price it would be obvious which I would buy. But if company B lowered the price of their bike I would have a more even decision to make.
1) Incentives Matter. Whether at school or at work there are incentives for everyone. Employees will go that extra mile for a larger pay. Students will work harders if their teachers promise extra credit or on rare occasions a party. Incentives give people the drive to do things. 2) Everything has a cost. Everyday at lunch I think about what to order. Today was tacos. In my decision I always think how much will it cost. Not only in the matters of price but of future value to my utility. Pizza is well more expensive than tacos but it is also bigger. Getting the pizza means that I gain less in my pocket but more in my stomach meaning I'll be fuller and less hungry in the afternoon. But with tacos I keep more in pocket but less in my stomach. 3) People gain from voluntary trade. A few years ago my friend and I just got back from trick or treating. After a few hours of walking we were exhausted and once we got to his house we threw all of our candy on the floor. Then we started trading candy. Whether it was Reeses for Snickers or Twix for Kit-Kats. Trading away the candy we hate for the candy we love. Gaining our utility but also the utility of our parents.
1. Incentives matter. Humans are animals. Every single decision we make is in response to a motivation. There has to be a motivation in order for us to act. There are different ways to motivate people. The most common ways are through punishment or reward. History has shown people respond better to the latter. No dictatorship with a communist economy has ever been successful because there is no reward for doing good work. It is necessary for an economy to propser to have an incentive to do good work. In a free market, this incentive is making more money or gaining utility. Teachers use this theory as well. Most teachers check homework for participation points because it's a reward for doing the homework. They don't beat you if you don't have it, you just don't get the points.
The test of a theory is its ability to predict correctly. In economics, theories will never be 100% correct. There will always be some people who don't go along with the trend. Good theories are different from bad ones because good theories apply to a wider range of people. I can say "my theory is that people burn money instead of using it," and it's still a theory and may be true every once in a blue moon. However, since it doesn't predict correctly very often it's a bad theory. For good theories, the opposite is true. A good theory is that students like to earn good grades. Some may not want straight A's because it raises expectations, but for a large majority of the student population this is true, making it a good theory.
The value of a good or service is affected by people's choices. This all relies on supply and demand, specifically the demand part. If a lot of people are willing to buy a product, it is more valuable even though the product never actually changed. This is because the profits earned from the product are greater, making it more valuable. The opposite is true as well. If nobody wants to buy a product (or knows about it), it's valueless because it doesn't provide any money to the owners even if it might be the greatest product on the market. How people choose to spend their money decide the value of a good. During a bake sale, if there are hundreds of people willing to buy a brownie for a dollar, it's more valueable than an equally delicious, but gross looking brownie people are unwilling to buy.
1. Incentives matter. If I want to try out for a softball team so that I can play over the summer I have to try hard and do my best so that they pick me for the team. Without the incentive of wanting to play softball I wouldn’t try very hard and most likely wouldn’t make the team. Therefore, I will play hard to get what I want which is to play softball and do whatever it takes to make that happen. 2. Everything has a cost. When I buy songs from iTunes that I love at the moment and it only cost 1 dollar or so then I’m happy with my purchase, but later on I may not like it as much as before so I regret spending my money on that song instead of another. The cost is having a song that I might not even listen to anymore instead of one I would, but I have to pay the price. 3. People gain from voluntary trade. On Halloween kids like me go all around their neighborhood to get candy with their friends. After trick-or-treating kids go back home with all their candy and see what candy they like and don’t like. I take the candy I don’t like and trade it with my friends that do like it for something I want. This way we both get candy we like and get rid of the candy we don’t like. This way everybody wins.
When you think of a cost what comes to mind? Normally money would come first but there are other ‘hidden’ costs, such as time, safety, or even welfare. If I were to spend an hour on my phone playing games or going on Facebook (which does not cost any money), that is an hour I could have spent studying. Therefore the cost of me going on Facebook is getting a better grade. Another example of how this applies to daily life is taking a ‘free’ sample at a grocery store. You do not have to pay any money for it so most likely you will try it. Even though this may be free for you, the company offering the samples has to pay to have them produced, and do not get any money directly from giving out the samples. They take no money now, and more money later when you decide to buy their product, and waiting for the income is also a cost in this situation.
Incentives matter: The only reason why we do things is for incentives. Unless I will get something in return for my time, effort, or money, chances are, I will not do it, and this is just natural human behavior. So because there are college scholarships for getting good grades or excelling in sports, I work hard in school to get the best grades I can, and I commit myself to playing golf matches in the hot sun while wearing our black golf polo uniforms, which can be very uncomfortable. I could very well go on Facebook instead of practice sports, but the only incentive is talking to my friends, which I could very well do in school.
Economic thinking is marginal thinking: In order to make a smart economic decision, you must first find a way to derive the most utility possible, or maximize the benefits of your decision. In order to do this, the marginal benefits of your decision must outweigh the marginal costs. An example of this is when I went back to school shopping… yay. I could either get a cheap paper folder for $0.25 or I could get a quality folder for $1.39, which is more durable and could hold more papers. I decided on buying the second folder because I would be much more organized than last year, because I had cheap folders that broke (ask Bridget), and I wouldn’t have to return to the store to buy a new folder at a higher price once the sales were over. The benefits of convenience, organization, and utility outweighed the extra $1.14 spent on the more expensive folder. Another example of maximizing utility is when I went golf polo shopping. I could get top of the line clothes at Golf Galaxy, o.k. polos at Aero, or cheap ones at Kohl’s. Since I play golf competitively, I need comfortable clothes to wear and ones that won’t bunch up every time I swing. That is why I chose the Golf Galaxy polos because they are more durable, comfortable, and they are actual golf polos.
“Everything has a cost” “People choose for good reasons” and “people gain from voluntary trade” are three of the economic ways of thinking that apply to our lives. Every good or service has a cost and it must be paid by the consumer if they want to purchase that good or service. So if I want to get a new laptop to have for school but I also want a new iPod I can’t get both because everything has a cost. So I would have to spend that money on one or the other thing. To go along with this idea, people make voluntary trades on a daily basis. Going back to the previous example, let’s say my laptop broke and school is starting and my iPod still works but I just want a new one because I don’t like the color anymore. I would choose the laptop because I would gain from that choice because I would do better in school rather than if I bought the iPod and was unable to do homework. And lastly, another example to go along with this is that people choose for good reasons. I would choose the laptop over iPod for a good reason, the laptop would be useful for school but an iPod would not.
There are many different aspects that go into having an economic outlook on life, including, the tradeoffs that people face every day, the way incentives effect people, and how much better off trade makes people and firms. People make tradeoffs every day, whether it’s intentional or not. Tradeoffs are simple, but can often end up affecting the rest of your life. Many tradeoffs are trivial, such as I could buy a sandwich today for lunch, but then I won’t have enough money to be able to afford the new purse coach is introducing in its summer line, but sometimes they can be much more important than that, and even end up affecting your future. Such as, I could go work at McDonalds for the rest of my life so I don’t have to attend any more school than required by the state, or I could go to college so that I can support myself later in life. People also make many of their decisions based on the incentives given. I tend to use incentives most often when babysitting. I’ve found that the most effective way to get kids to behave is bribery; give them the right incentives, and you can have them doing whatever you want, with the benefit of both of you leaving happily by the end of the night. Lastly, trade helps make everyone better off. I use trade every day, and I almost always use it at lunch. Each and every morning my mom packs me an applesauce in my lunch, but I’m not a huge fan of applesauce, unlike one of my best friends Jaclyn. Jaclyn on the other hand adores her applesauce, but her mom never buys it because she’s the only one in her house that likes it; so every day at lunch Jaclyn brings me something different that I like in return for my applesauce, so not only does she get her applesauce that her mom deprives her from at home, but I also get something that I enjoy much more than applesauce everyday with my lunch, making us both much happier with our choices for lunch.
Everything has a cost: If i decide to wait to study for a test until the night before , because I spent my nights doing something that seems more important to me, I may have fun those nights, but it will have a bad affect in the long run. In the long run, the cost of me spending my nights doing something else and waiting to study, is possibly getting a bad grade because I am not completely prepared.
The value of a good or service is affected by people's choice: This is basically based off of supply and demand. For example; if i go to fill up my car with gas, and their is currently a low supply, but a high demand, the gas stations may raise the price of the gas because of such a a high demand. Therefore I may not be able to buy gas at that time, and those who only either have enough money or really need the gas would be able to buy it.
Incentives matter: Most people don't do the things they do without reason or incentive. For example; this year I want to try out for basketball. In order to be ready for tryouts I need to run, workout, and practice a lot to be in shape and prepared. Normally I wouldn't want to do any of that because I could be spending my time doing something I would much rather be doing. But because I want to be on the team, I have the incentive to work out and practice so I will make it.
1. Everything has a cost. Simply, one choice I decide to make will cause me to lose a chance at something else, or I will lose the oppurtunity to do so. If I choose to eat 1000 ice cream bars in a single day, it sure tastes good, but the cost is that I gained thoasands of extra calories I didn't need. 2. Incentives matter. I do not do homework because I enjoy doing it, I do homework because it helps me achieve good grades, and consequently helps on getting a great job in society. I would not choose to do homework assignments if it did not have an outcome on my life, since there would be no incentive to do so. 3. The value of a good or service is affected by people's choices. Products are at low prices if no one desires them, and vice versa. If I wish to buy a new video game that just came out, and everyone else's choice is to buy one also, that game will go up in value because so many others want it. If no one chooses to get a game from 15 years ago, it will of course go down in dollar value. There is no longer a large demand for it.
People choose for a good reason- I don’t just buy the first product in the aisle. I compare the quality of the product. For example, I don’t just take the store brand paper towels. I compare the durability and cost. If the number one selling paper towel brand is cheaper and more durable than the next one, I’m obviously going to pick the better brand because it’s better for me. The value of a good or service is affected by people’s choices- If I’m walking in the mall I’m going to go into my favorite store instead of their competitors. Let’s take Best Buy and Circuit City, I chose to go to Best Buy over Circuit City because I like Best Buy better overall. I, therefore, am one of the reasons why Circuit City went out of business. The value of Circuit City was lower than Best Buy because people liked Best Buy better. People gain from voluntary trade- People trade so they can be better off. When I was little I traded cards all the time. If my friend had a card that I wanted, I would trade him for a card that he wanted. We both win, I get the card I want and he gets the card he wants so now we are both better off.
Everything has a cost. When I bought my phone the phone didn't cost anything. But technically it wasn’t free. The phone came free only after I had agreed to be tied to T-Mobile for four years. Thus it was not really free because I had to sign up to be in on the plan for the next four years and if I wanted to switch plans then I had to pay money to switch out of the contract. So basically that “free” phone tied me to T-Mobiles service for four years. Incentives matter. Incentives are important because they make people want to do things. When I was little my mom would buy me candy bars if I was well behaved while we were at the store. This made me want to be on my best behavior to make mom happy and to earn that delicious candy bar at the end of the trip.
The value of goods and services are affected by people’s choices. At the time before homecoming all the dresses were very expensive because the stores knew people would pay the price to get a dress for homecoming. But after homecoming is over the prices start to fall. The stores know that most of their dresses will not be sold if they are kept at that price because not many people have other occasions to wear such fancy clothes. Thus the prices fall because they are no longer worth as much due to the fact customers don’t want them as much.
It’s true that everything has a cost, but not all cost have to deal with money. By doing a job you earn money that can get you more things that you want or need to buy. Every minute you are working you take away time that could have been spent going out with friends or studying etc. Every day I spend watching TV is time that I could have been studying or doing homework. There for I won’t have much time to finish my work and study which leaves me with a lower grade. The cost was my time that could have been spent more productively.
Every decision we make has a trade off. We must sacrifice one thing in order to gain another. Last year when I was deciding my schedule I had too many classes and not enough periods. In order for me to take choir I had to give up driver’s education and introduction to business. Now I’m going to have to take drivers education after school and take business hopefully next year.
Incentives motivate people into to doing things. In the past and presently my parents will try to bring me shopping with them when I didn’t want to go. One way of motivating me was to bribe me into coming. My parents told that they would buy me new shoes, clothing or even candy so that I’ll tag along.
People Respond to Incentives: Individuals try to derive the most utility out of any product or service. This is a fundamental law in our economy. The people whom work to produce this good or service, are working for the sole benefit of their own utility. In other words, their hard work is rewarded with compensation for “getting the job done.” This compensation is known as money. Asian sweatshop workers can earn dollars an hour just to provide for their family, or a corporate executive can earn hundreds of dollars an hour to go on cruise vacations with his family. Both of them derive utility in some way, and this is what drives individuals to produce; these are incentives. An individual’s incentive to produce is merely compensation between the buyer and seller. The seller provides a service for the buyer for a cost. The cost is ultimately money, and through purchasing with money is how individuals extract their utility. The same concept can apply to my life. I tutor a fourth grader, who needs a little extra help in reading and comprehension. The dad (the buyer) is buying my service (the seller) to tutor his son. My incentive for doing this is the 10 dollars an hour I charge for this service, and at which at the end of the week I am free to spend on whatever satisfies me the most.
The Cost of Something is What you Give Up to Get it: Whether a toddler wants the latest Power Rangers, or a teenager wants a fully loaded BMW, both of these products require some work either directly or indirectly; either your mom gives you the money for that new car (she had to work for it), or you earn the money yourself. Both ways of acquiring your desired good or service provides some sort of cost to you. The Power Ranger or car has the cost of money for example. You or your mother gave up the time and effort to earn that extra buck for that navigation system. A cost of her or your time compensates with the brand new car. College is a prime example of this. I am trying to get into either Babson College or Harvard University. The acceptance rate for Harvard is a drastically low 7%, and Babson is the number one school in the world for entrepreneurs. As you can see, these are very competitive high schools, and the cost of going there is what you’re willing to give up of your time to show your exceptionality that sets you apart from the other thousands of applicants. The amount of time and work I must commit is a cost in itself, and that’s not even including the price tag of the tuition.
A Country’s Standard of Living Depends on its Ability to Produce Goods and Services:
The country’s standard of living depends on its ability to produce goods and services is a bit controversial. It’s controversial in the fact that the answer is both yes, and no. In our society, we have a measurement for the amount of goods and services produced called the GDP rating. (Gross Domestic Product) The GDP rate is the amount of goods and services produced within one year. The idea here is that if we produce more services and goods we are better off as we are more efficient as an economy. This would provide the yes answer to our question as we are more productive, and thus afford more utilities. The no answer to this query lies in the detail that the GDP rating is just a statistic; more importantly everyone has a different view of what makes them happier. The concept of more money equals more happiness does not apply to everybody. I have a friend who is constantly spending money on materials that not all necessarily make him happier as a person. Different utilities such as love or friendship cannot be bought, and thus has no relation to the GDP. I see this, and realize that I derive more utility out of relationships than out of the newest video gaming system. The economy cannot uniformly measure this however, but then again everyone else’s view of the standard of living is different. There really is no black and white way to tell, but examining the grey area is our best bet.
People Respond to Incentives: Individuals try to derive the most utility out of any product or service. This is a fundamental law in our economy. The people whom work to produce this good or service, are working for the sole benefit of their own utility. In other words, their hard work is rewarded with compensation for “getting the job done.” This compensation is known as money. Asian sweatshop workers can earn dollars an hour just to provide for their family, or a corporate executive can earn hundreds of dollars an hour to go on cruise vacations with his family. Both of them derive utility in some way, and this is what drives individuals to produce; these are incentives. An individual’s incentive to produce is merely compensation between the buyer and seller. The seller provides a service for the buyer for a cost. The cost is ultimately money, and through purchasing with money is how individuals extract their utility. The same concept can apply to my life. I tutor a fourth grader, who needs a little extra help in reading and comprehension. The dad (the buyer) is buying my service (the seller) to tutor his son. My incentive for doing this is the 10 dollars an hour I charge for this service, and at which at the end of the week I am free to spend on whatever satisfies me the most. The Cost of Something is What you Give Up to Get it: Whether a toddler wants the latest Power Rangers, or a teenager wants a fully loaded BMW, both of these products require some work either directly or indirectly; either your mom gives you the money for that new car (she had to work for it), or you earn the money yourself. Both ways of acquiring your desired good or service provides some sort of cost to you. The Power Ranger or car has the cost of money for example. You or your mother gave up the time and effort to earn that extra buck for that navigation system. A cost of her or your time compensates with the brand new car. College is a prime example of this. I am trying to get into either Babson College or Harvard University. The acceptance rate for Harvard is a drastically low 7%, and Babson is the number one school in the world for entrepreneurs. As you can see, these are very competitive high schools, and the cost of going there is what you’re willing to give up of your time to show your exceptionality that sets you apart from the other thousands of applicants. The amount of time and work I must commit is a cost in itself, and that’s not even including the price tag of the tuition.
People Respond to Incentives: Individuals try to derive the most utility out of any product or service. This is a fundamental law in our economy. The people whom work to produce this good or service, are working for the sole benefit of their own utility. In other words, their hard work is rewarded with compensation for “getting the job done.” This compensation is known as money. Asian sweatshop workers can earn dollars an hour just to provide for their family, or a corporate executive can earn hundreds of dollars an hour to go on cruise vacations with his family. Both of them derive utility in some way, and this is what drives individuals to produce; these are incentives. An individual’s incentive to produce is merely compensation between the buyer and seller. The seller provides a service for the buyer for a cost. The cost is ultimately money, and through purchasing with money is how individuals extract their utility. The same concept can apply to my life. I tutor a fourth grader, who needs a little extra help in reading and comprehension. The dad (the buyer) is buying my service (the seller) to tutor his son. My incentive for doing this is the 10 dollars an hour I charge for this service, and at which at the end of the week I am free to spend on whatever satisfies me the most.
The Cost of Something is What you Give Up to Get it: Whether a toddler wants the latest Power Rangers, or a teenager wants a fully loaded BMW, both of these products require some work either directly or indirectly; either your mom gives you the money for that new car (she had to work for it), or you earn the money yourself. Both ways of acquiring your desired good or service provides some sort of cost to you. The Power Ranger or car has the cost of money for example. You or your mother gave up the time and effort to earn that extra buck for that navigation system. A cost of her or your time compensates with the brand new car. College is a prime example of this. I am trying to get into either Babson College or Harvard University. The acceptance rate for Harvard is a drastically low 7%, and Babson is the number one school in the world for entrepreneurs. As you can see, these are very competitive high schools, and the cost of going there is what you’re willing to give up of your time to show your exceptionality that sets you apart from the other thousands of applicants. The amount of time and work I must commit is a cost in itself, and that’s not even including the price tag of the tuition.
A Country’s Standard of Living Depends on its Ability to Produce Goods and Services: The country’s standard of living depends on its ability to produce goods and services is a bit controversial. It’s controversial in the fact that the answer is both yes, and no. In our society, we have a measurement for the amount of goods and services produced called the GDP rating. (Gross Domestic Product) The GDP rate is the amount of goods and services produced within one year. The idea here is that if we produce more services and goods we are better off as we are more efficient as an economy. This would provide the yes answer to our question as we are more productive, and thus afford more utilities. The no answer to this query lies in the detail that the GDP rating is just a statistic; more importantly everyone has a different view of what makes them happier. The concept of more money equals more happiness does not apply to everybody. I have a friend who is constantly spending money on materials that not all necessarily make him happier as a person. Different utilities such as love or friendship cannot be bought, and thus has no relation to the GDP. I see this, and realize that I derive more utility out of relationships than out of the newest video gaming system. The economy cannot uniformly measure this however, but then again everyone else’s view of the standard of living is different. There really is no black and white way to tell, but examining the grey area is our best bet.
1.) People choose for good reasons- This means that people choose things that will benefit them and don't randomly buy things that will not help them. This makes businesses successful since they can predict what people want in a certain climate or place. For example if someone moves to Antarctica and they only have t-shirts and shorts they will probably buy a coat and other warm cloths so that they don’t freeze to death when they go outside. I use this in my own life when I purchase something online and I need it the next day. When I needed soccer shoes i ordered them and chose the cheapest shipping because I didn't need them until two weeks so i did not need to pay an extra $20 to have them shipped overnight. 2.) Economic actions make secondary effects- This means that when somebody makes a decision there may be an effect that is unpredicted. For example if someone decides to make a firm that helps animals in the middle of the rainforest then they may realize that they destroyed more animal homes with the building they saved or helped. This has happened in my life when I decide to watch TV the secondary effect is my mom gets mad at me. 3.) The test of theory is its ability to predict correctly- This means that in a market economy if you can predict the way the market will react to different situations then you should be very successful investing in it. For example if you run a gas station and you have a theory that electric cars will become very popular then you would convert all your pumps to charging stations. This way you earn more profit than your competitors. But if you are wrong you lose money. In my life when I have to do my homework I predict that it will be due the next day that way I am successful at getting my homework in on time.
Everything has a cost: When any purchase is made, the cost of that purchase is not only the dollar value spent, but also what is given up. For example, when I choose to buy a chicken fajita burrito at Chipotle (once it opens :]), I am sacrificing buying something else with that money. Down the road if I’m $6.50 short on a tuition payment or a down payment on a home, I might wish I hadn’t bought that burrito. In the meantime the food is well worth the cost. Cost can relate to not only money, but also things like time and resources. Incentives matter: All of our decisions regarding economics, and life in general, are affected by the incentives involved. Incentives are the motivation behind all of our actions. If, for example, a teacher assigns a reading to his students with the warning that they will be tested on it the following day, the students have more motivation, or incentive to read. On the other hand, if the teacher told them the reading was for their benefit, but would not be discussed in class, the students would be more likely to ignore the assignment. In a similar manner, AP level courses offer the incentive of potentially earning college credit and thus saving money on college tuition later. Without this incentive, very few students would voluntarily sacrifice precious hours of sleep at night, time with friends, and ultimately their sanity in order to take the course. Incentives play a major role in the process of making most decisions. People gain from voluntary trade: Yet another aspect of economics that relates to life would be the idea of voluntary trade and the benefits that accompany it. Voluntary trade is when multiple individuals offer up (by their own will) something of their own in exchange for goods from someone else. Halloween is definitely a prime night for voluntary trade. After a long day on the streets of Grayslake, racking up as much candy as possible, my friends and I would always settle down at the local trading post (also known as my living room) for some high-quality voluntary trade. Chocolate lovers could trade away their fruity candy, while starburst and skittles lovers could offer up their chocolate in exchange. It was also a good way to get rid of those Almond Joys that I always seemed to accumulate, despite having no interest whatsoever in eating them. This system of voluntary trade benefits all parties as they decide which goods they are willing to trade and what they are looking for in exchange.
Everything has a cost for example at a parade, businesses and political figures pass out “free” candy, nail files, or even stickers for good publicity. Even though it took time to make and package the items that people receive as free. In another scenario my sister decided to buy a dress, but used money that she could have saved for a car. In another case, getting a gift certificate for a lunch, it isn’t really free because someone had to take the time and money to purchase the gift for you, when they could've been doing something more productive.
People choose for good reasons for example Jewel Osco isn’t as popular as Super Wal-mart because at the Super Wal-mart you can buy pretty much anything in one trip besides just groceries at a lower cost. My family tends to go to the Super Wal-mart over the Jewel because we can save more for food. Another example is Kohl’s and JcPenney, people tend to prefer Kohl’s because of their sales and advertisement, even though JcPenney sells similar products.
Incentives matter, for example children go to school to go to college, not just to have fun or learn. Students strive for the best job they can get where they earn the most money. In family life parents go to work everyday to make sure they have security and other necessities in life for not only themselves, but their kids as well.
People choose for good reasons. Say I go to the car lot to buy a car, and the dealer shows me two different cars that he had for sale and thought I might like. One is a used mustang, and the other is a brand new sedan. I like new cars, but I also don't want to pay a lot for one. So I ask him the price of each, and the car salesman tells me that the sedan costs more than the mustang, but the mustang doesn't have very many miles on it. I will choose the used mustang because i like sports cars, but also because I want the cheaper car.
Everything has a cost. If I go to the dentist to get a cleaning, at the end the dentist will pack up a little bag for me full of things I need to take care of my teeth. There could be a toothbrush, floss, toothpaste, and mouthwash in this free bag. But even though this bag might be free to me, there were a lot of costs involved with making it. The factory had to pay to make my toothbrush, and the dentists had to pay to get it. Everything that's advertised as free is not really free, but actually cost something to someone.
Incentives matter. When someone goes to a barn to buy a horse, they will see that there are many horses for sale. There are all types of colors and levels of training and temperament among the horses. This person loves white horses, but also needs a very patient horse, because they are new to riding. The only white horses this barn has are energetic, impatient horses. The most patient horse they have is brown, and even though this person really wanted a white horse, they chose the brown one instead. They did this because they knew that if they got the white one, they wouldn't be able to ride it, and that was their point in buying a horse.
Everything has a cost is the way of saying when you buy something or do something you no longer have that money or time to do something else. This associates with me because of my videogame playing habits I no longer have the time to do homework or something else fun with my friends. I also lose the money to buy an important item like new football cleats. Incentives matter because people look at that and think they are getting a deal making them want the product even more. This applies to me because when I go to buy a videogame or other electronics, I look to see if you buy this game you get another one for a lower price or free. People chose for a good reason is when you chose one brand or store over another for some reason you and most people would say is reasonable. This applies to me because I choose to shop at Wal-Mart instead of Jewel Osco or Garden Fresh Market.
The first way that economic thinking is applied to my life is that everything has a cost. When I go to the store and I see a sign that says buy one get one free, I must stop and think, do I really need to buy that item or am I just being lured in by the thought of getting a discount price or another item free. Also, if I have to factor in the time it takes me to get the item. For example, if I could get ice cream for $3 5 minutes away, but I could get the same ice cream for only $2 10 minutes away, I have to decide how bad I want that ice cream. The second way thinking is applied to my life is that incentives matter. Incentives matter because it is one of the things that make us choose one product over another. Whenever you are looking to buy a new item and can't decide which of them to buy, you probably look at which one of them has extras the other ones don't. Also, along with my first choice, you must decide how much you are willing to pay for the extra incentives. My last economic way of thinking is that people choose for good reasons. Nobody on earth ever chooses to buy a product because it made them worse off; we buy products to bring us enjoyment and to keep us alive. So whenever you go to the store and are about to buy a product, you are more than likely ask to yourself whether or not you will be better off with this item.
1.) Incentives matter. This statement is essential to all aspects of life. For almost everything we do there’s some incentive. My dad goes to work everyday to support my family. My sister goes to soccer practice everyday to get better, and potentially have a career in that area. My friends with permits have an incentive to go and drive in order to obtain enough hours to receive a license. I go to school and work hard so I can go to any college I want and get my dream job. Without incentives, there is little motivation or reason to do anything. Incentives increase productivity in society. And productivity leads to a successful, wealthy nation.
2.) The cost of something is what you give up to get it. This is true for everything. The amount of money, for example, of what you pay, for lets say, a bagel is what you are willing to pay. Most people wouldn’t pay ten dollars for a bagel, but many people would pay one dollar for a bagel; it is what they chose to give up in order to get the bagel. You’re giving up something in exchange for something else. Some people are willing to pay more money for goods made in Europe than the same good made in China; they are giving up more money in order to get something they believe is of good quality. I am giving up much time in order to get good grades on my homework, rather than little time to do poorly on my homework. The “cost” can mean time, money, or a service. In our heads we weigh the cost with how much we want or need the good or service. Every good/service’s sale depends on its price to the consumer.
3.) Trade can make everyone better off. Trading allows nation’s cultures to diffuse and overall makes both nations more diversified. When trade occurs both parties are trading because they are receiving a good/service that is more desirable to them than the good/service that they are giving up in exchange. This makes both parties happy and better off. In my life, my best friend borrows my clothes. The tradeoff? She makes me food! She is willing to prepare me food because she believes it is worth it to get my clothes. Me, on the other hand, could care less about letting her borrow my clothes (well for the most part) so I see the food as a great deal! Both of us our now better off. Nations do this all the time, but in many cases it can deal with natural resources. One nation prospers in a natural resource and the other nation has a mass amount of a different natural resource, the two nations trade. Each nation is better off. All over the world trade has made everyone better off.
The 3 main economic ways of thinking that relate to my life are: 1. Everything has a cost. This means that you cannot get something for nothing in return. In life, this is similiar to copy your homework from someone else. In the moment, it may feel like you are getting the work done without having to actually do anything. But in the long-run, you won't know the information as well for a test, then if you would have actually done the homework yourself. 2. Incentives matter. This is the reason behind someone doing something. In life, there is always a reason someone is asking or doing something. Whether it is for personal gain, or to prevent others from doing something, there are always incentives backing everything you do. When a boy asks a girl if he likes her, it isn't to just know. It is most likely because he likes her too. 3. People face tradeoffs. This is similiar to the saying "you can't have your cake and eat it too." In life, you can't have both of the things you want, without losing something in return. If you want to play sports during the school year, it's going to be hard for you to be in any of the clubs you really want to be in. This happened to me when I wanted to play softball and be in Best Buddies. I couldn't do both, simply because it conflicted with my schedule. This will happen all throughout life.
-Everything has a cost: Economists often say, “No free lunch.” Keeping it literal, why does McDonalds occasionally give away “free” food? It costs them money for the buns, meat, potatoes, lettuce… And yet, they can give it away. The answer is that it’s not really “free.” It costs the consumer time (and gasoline) to get to the restaurant. Maybe they give it to you because you had the lucky Monopoly stamp, in which case you would have had to have bought food there before. Maybe they messed something up, but, again, you already bought something. But McDonald’s still makes money. The free products tell people that they know how to treat their customers, so people receiving free products will probably come back to spend more money. Nothing is “free.” -People gain from voluntary trade: Simple: if you trade what you have for what you need/want, you will be better off. You have handmade jewelry that someone in Europe/the U.S. will want; you trade it for food and medicine. You have incredibly large, beautiful diamonds; you trade them for enough clothing to give a full wardrobe to the entire country. Going back to one of the most basic economic principles, voluntary trade will boost your utility. -The value of a good or service is affected by people’s choices: Gasoline is THE fuel. Everybody needs it. But if someone were to find a way to make a cheaper and superior fuel, people will most likely dump gasoline for the alternative fuel, and gas prices will plummet. The same is true for most goods and services. People want efficiency, and they want it cheap.
Everything has a cost. This means that when you choose to do something you also choose to spend that time not doing something else. When you buy something you also choose not to spend that money on something else. So, if I were to buy a new pair of $200 cleats, I choose to not spend that money on food or any other up and coming thing because I spent it on those cleats already.
Incentives matter. I chose this particular item off of the list I was given because it is true. The way that you are convinced to do something does matter. One example I have from a recent experience was this weekend I went to a concert with my little sister because she loves the bandsd that were playing and she wasn’t allowed to go without me or a parent. My incentive to go was that I don’t mind the bands and I benefit from going because my parents appreciate not having to go and listen to loud music for three hours. If I had no incentive, I wouldn’t have gone.
Economic actions create secondary effects. This was my favorite item off of this list because it is so true. When I buy a new pair of shoes, not only have I benefitted my getting a brand new pair of shoes, the company benefits from the profit I am giving them when I pay for them. A personal example that I have is when my little sister who’s four has her little lemonade stand in the front yard. When I pay her 25 cents for that little cup of lemonade, I don’t only benefit from the glass of lemonade I bought, and not only does she benefit from the 25 cents I just gave her, I increase her independence every time I buy something from her.
1. People gain from voluntary trade. I can relate this to my life from the time got new dance uniforms. My shirt ended up being to big, while my friends shirt was too small for her. We decided to try on eachothers shirt and they fit perfectly, so we traded and we were both happy since we had uniforms that fit. So we both benefited from the trade, in the end. 2. Incentives matter. Incentives can potentially persuade consumers to buy a certain product or service. In my case my dentist provides an incentive to get people to come to her office. They will give free whitening for life to anyone who signs up for their dentist service. This benefits both the owner and the consumer, the owner of the dentist gets people to stay at her office because that’s the only way to receive their whitening. The consumer benefits by getting free teeth whitening for life 3. Everything has a cost whether it is money or a personal item. In my case it is the environment. My dad drives past school on his way to work so he drops me off, as it is not out of his way to do so. No harm done right? Wrong. There is damage done to the environment when I choose to drive with my dad rather than take the bus, which is like a giant carpool saving a lot of money, gas, and pollution. Although there is not a cost directly to me or my dad right now, taking the car will worsen global warming and therefore harm the earth and its' future.
1)The value of a good or service is affected by people's choices. For example, the price of candy at lunch was a dollar until this year. The price was probably raised because they knew that kids would pay the extra twenty-five cents because we still want our candy. If nobody really wanted candy that much, they would prbably have lowered the price or not sold it at all because if people don't want it, it's not valueable. 2)People gain from voluntary trade. My sister and I both got $20 gift cards for Christmas from our Grandma's friend. Hers was for iTunes and mine was for Target. She uses Limewire for music and I didn't really need anything from Target (although I'm sure I could find something), so we traded. I could buy music and apps and she could buy food or whatever she needed, $20 dollars at Target is much more useful than $20 on iTunes for a college student and I was happier with my $20 worth of apps and songs, even though really they had the same value. 3)Everything has a cost. When I was staying at my Aunt's house, my cousins and I decided to go to the church picnic early to "help set up", we really were just going for the free doughnuts. So while all the men unloaded the trailers of tables and tents and everything, we ate our "free" doughnuts. First of all, somebody bought the doughnuts so money-wise, it cost somebody something. Even though my cousins and I weren't working for the doughnuts, we still could have slept in another hour and not been so tired all day, so it really costed us an hour of sleep.
The first way of thinking that is applied to my life is incentives matter. whenever i want to buy something i always look at why i want to buy it. one example of that is if i want to buy a new keyboard i would look at all of the parts of it; how meny keys it has, hoe many sounds it has, can it plug into my computer, ect.
ReplyDeletethe secend mode of thinking applied is everything has a price. on my ipod touch i will often buy an app thinking "its just one doller" but latter i will realize i spent alot of money on little games that i could have saved for a bigger purchase.
the finnal way of thinking is economic thinking is marginal thinking. way back in my younger years i would collect trading cards. i always wanted to get one more set of cards. by the end of my unhealthy obsesion i had more cards than i could count because of my marginal thinking.
A lot of economic points relate to everyday life. One that relates to mine is that people choose for good reasons. If I go to the mall and see a blue shirt with buttons in one store for $10 and a lighter blue shirt with buttons at a different store for $20, I’d buy the darker blue shirt. If they both have my size, and look good, I won’t choose the lighter blue simply because it’s lighter. I’d choose the better price. So, people choose for good reasons. Another is that people gain from voluntary trade. Say I’m sitting at lunch with a tuna sandwich. I hate tuna, but my best friend with a peanut butter and jelly loves it. I’d much rather eat the peanut butter and jelly than the tuna my mom forgot I hated. So, I trade my sandwich with my best friend who loves tuna, so we both gained a sandwich we liked from our voluntary trade. Last is the test of a theory is its ability to predict correctly. My theory is that if my friend and her boyfriend fight one day, they will break up that day and make up the next. So one day, my friend and her boyfriend were yelling at each other in the hallway. She seemed very upset, and later that night, I got a call from her, crying. They broke up. I comforted her and told her I thought they’d be back together in no time. Sure enough, they were walking down the hall, holding hands the next morning. So my theory was correct, but I never would’ve known if they didn’t fight in the first place. So by testing the theory with them fighting, I discovered I was right because they broke up that day and made up the next day. Therefore, all economic points can be related to everyday life.
ReplyDeleteThe first economic way of thinking is that everything has a cost. An example would be if you bought a candy bar before you checked out at the store; the dollar you spent on that candy bar could have been used to donate to a charity and save someone’s life. This is the cost of using the dollar to purchase a candy bar. It applies to my life in the way that I constantly have to weigh the costs against the benefits. The second economic way of thinking is that people choose things for good reasons. No one will choose something if they don’t think they will gain some utiliy from it. In my life I try to choose things only if I’ve thouroughly researched it. This way I know the right choice. Finally, incentives matter. If someone has a good enough incentive to do something then they will most likely do it. In my life, teachers often provide incentives for students to work harder. This increases the chances they will do it.
ReplyDelete1) Everything has a cost. In Economics, there is no such thing as a free lunch. You have to consider the factors such as paying the farmer to raise the food, truck delivery, chef prep, and the server. The other day I saw a commercial that offered a free flashlight when you bought a snuggie they were trying to sell in the next ten minutes. However, the free items probably weren't as free as I thought. The business had to pay the workers for manufacturing the flashlight, they had to pay for the materials that the items are made with, and they had to pay the delivery guy for shipping it. The business can't be giving away free items without losing profit, so they probably regain this profit by jacking up the price in the snuggie.
ReplyDelete2)Economic thinking is marginal thinking. In economics, we have to weigh the marginal benefits and the marginal costs. When I was looking for a tennis racket online the other week, I had narrowed my choices down to three options. I could either get a basic $150 racket, I could get a pretty good racket for $175, or I could get the best racket for $200. In choosing this, I had to weigh the marginal costs versus the marginal benefits. I came to the decision that since I play tennis competitively and that I derive a lot of utility from having the greatest performance possible, I was willing to pay the $200 for the best racket. However, if there was a racket that was somewhere around $300, I would probably have chosen the next best one, because the marginal cost of paying $300 for a racket would not meet the marginal benefit of playing with that racket.
3)People gain from voluntary trade. In economics, countries trade with one another in order to better the economy. Both countries are looking for goods that will hopefully benefit their country more at the expense of the export that we are giving to them. If we, as a nation, are very productive at making tennis rackets, then we should look to trade with a nation that wants tennis rackets, and in return, we should ask for something that will better our nation. Since both nations are trading their productive resources, we all benefit and our economy grows. On a smaller level, the other day my friend broke the strings on her tennis racket. I told her I could restring it for a small price. In return, she gave me a ride to school for the next week. Since I don't have a car, and she doesn't know how to string a racket, we both benefit from the situation.
Incentives matter is something that is appicable to my life since the we are not in great economic times I must very carefully decide on what it is that is worth buying and if it will last for a long generation of time. Such as right now I am looking for a good deal for a new(used) car for me that is going to last for aleast till the end of college, my incentive thinking.
ReplyDeleteEverything has a cost is one of the economic ways of thinking that is also very applicable to my life since obviously everything has a cost at some point. No matter if it is being manufactured, the items are being gathered, or if the item is being sold. So the when someone wins something for free it has obviously been payed for something in the objects "life."
People create economic systems to influence choices and incentives is also one that is being used by myself since I need ALOT of money for a car, college, and many other obsecessions and hobbies. So the bank is a system that influences me to put the gathered/saved money in the bank for me not able to spend on worhtless junk. When I have enough money saved up I prefer to put it in a cd in a bank so that I could get access to my money till after that certain time limit is reached and that cd also gives me a higher interest rate since I have no access to my cd for a certain period of time.
1. Everything has a cost. This relates to my life, because every decision I make to spend money takes away money I could be spending on other things, either now or in the future. Even if my parents pay for me, it would seem free to me, but this is untrue, as my parents now have less money to buy something either for themselves or for our family.
ReplyDelete2. People choose for good reasons. I know this from personal experience, because everyone makes hundreds of decisions every day. Even if someone decides to spend all the money they saved for college on a car, a tv, and a boat, they still chose for good reasons. Even though this is probably not a good decision in the long run, this person chose for good reasons, because they decided they would enjoy these products right now more than the extra money from their education later on.
3. Incentives matter. Most people would be able to tell you this, because almost no one just does thing without having a reason. Someone could be dancing alone in the park with no music playing, but they still have an incentive, either that they enjoy scaring people or they really enjoy dancing. Incentives also cause people to do things they might not want to do otherwise. Homework is not high up on my list of things to do, but I do it because I have the incentive of not failing the class, which is pretty high up on my list of things to do.
1.) Everything has a cost. If I decide to stay up until one o'clock in the morning on a school night to be on Facebook, then I'll be really tired the next morning. I could have been using those hours on Facebook to sleep instead. Being tired is my cost for wasting time on Facebook.
ReplyDelete2.) Incentives matter. If I'm playing a tennis match and I know that Coach T won't make us run the next day if we win the meet, then I'll play more aggresively so I can win my match for the team. My incentive to win the match is knowing that I won't have to work as hard the next day at tennis practice. I am gaining utility from playing harder.
3.) People gain from voluntary trade. If I'm in the lunchroom and I have a turkey sandwich for lunch and my friend has pb&j, but neither of us want our sandwich, then we can trade. If we trade, then both of us will derive utility from our new sandwiches. We will both enjoy our sandwiches more and therefore, our lunch.
1.) The first topic that I am doing is that everything has a cost. Nothing in this world can possibly be free. Some things may not cost any money, but it can cost other valuable resources. When you are giving someone a gift, they may be getting it for free, but there is still a cost. Lets say the gift is everyone’s favorite. Socks. The socks have the cost of labour from the work of picking the cotton or wool and also the work of making them. There is also the cost to you for buying the socks. An example for my life would be a gift. I usually give my friends a video game or simply money, which costs me time and money.
ReplyDelete2.) My second topic will be incentives matter. Incentives are a very powerful influencing tool. Incentives can make the difference in a consumer buying your product or the competitors. Incentives give the consumer a little extra or a push to buying a product. An example of an incentive would be if a consumer bought your product, then 10% of the perchase would be donated to the starving children in africa. This will appeal to the philantropist side of people and make the feel like they are making a difference. This connects to my life when the breast cancer shirts were on sale and a certain portion of the sales would go to breast cancer.
3.) For my third topic I will talk about how peoples choices affect goods and services. Peoples choices greatly affect goods and services in a market economy. This is because the economy is based on the consumer. If the consumer prefers product A over product B, then the company who supplies product B will either lower their prices or increase the quality of the good. This shows that by peoples choices are monitered by companies to try and best one another. Peoples choices can also influence the supply of a product or service. This is connected to my life in the videogame department. I chose an X box over a WII because I believed it was of much better quality. My choice alone isn’t enough to effect the whole market, but mine compared with many others can.
Everything has a cost.
ReplyDeleteIf I decide not to do my homework, I may have some free time. However, I ultimately lose a grade in the grade book which will ultimately hurt me in the long run. While it’s a little servere, That grade may have been the difference between say Northwestern University from Indiana University. By that, I may not have as many job offers or make as much money wherever I may work. This in a long run may affect economic growth of the country, as I won’t be pumping as much money into the economy.
Incentives matter.
In chemistry honors, formative assignments have a 0% weight in the grade book. By the same measure, Tests and Projects are worth 100% of my exam. To some, doing homework may seem redundant in that they don’t carry any weight in the grade book. However, by doing this homework and other work in the same subject class, I make myself that much better off on my test. If the class was not a credit class, however, and I wasn’t interested in the subject I would really have no reason to work to the potential of that class, namely because it doesn’t benefit me in the long run.
People choose for good reasons.
Choice occurs every day for everybody. I choose to get out of bed on time. I choose to make the most of my day and pay attention in school. All of those choices positively affect me and others. I get out of bed on time so I can go to school and someday contribute to society in an adult matter. Eating breakfast takes food, which is purchased from and benefits others and me. Paying attention in school benefits me by education and others by affecting test scores, boosting school education ratings, giving people incentive to move near here and ultimately pumping more money into the education system and the local economy.
The value of a good or services is affected by people's choices. –
ReplyDeleteIf somone has hated cleaning their whole life and chose to not clean their house or room, a maid would seem like an excellente service because it does the job that they do not want to do. I have disliked cats over dog my whole life, so in my mind I think the same price for a cat and a dog, the dog would be a better deal.
People choose for good reasons –
I would not go out and buy a projector to present power points and other pojects if all I used it for was to view my projects before handing them in. I would rent a DVD over buying a movie because the DVD is much cheaper and if I don’t enjoy the movie I can return it.
Everything has a cost –
I live close to the school so I can walk, most days I walk because I see walking as being cheaper. When I walk I used more energy but I save a lot of time and comfort (buses can get very hot in early fall). I feel walking is cheaper because it is quicker and more enjoyable than talking a bus.
1. Everything has a cost. This applies to my life because when I want to get something, I have to pay attention to the cost of the item. It is good to remember this because I wouldn’t want to waste getting, when I can save it up for something better and more practicle.
ReplyDelete2. People choose for good reasons. This applies to my life because when I buy something, it is usually for a good reason. If there wasn’t a good reason, then there is no point in getting it. If everyone in the world bought things without good reasons, we’d be stuck with a lot of useless junk.
3. Incentives matter. For every A I get in a class, my parents usually give me $10. That is part of the reason why I try to get good grades every year and it gives me an incentive to get them. Without having an incentive to do something, many things would not get done.
1. Everything has a cost: The meaning of this is that whether or not you get something for free or not it will always cost someone money. A free lunch is bought by the government which will cost everyone in society when they pay for taxes. I can relate to this because when I am in athletic council, although we may not have to pay for our free pizza, the school still has to buy it for us. Therefore, there may not be a cost in our eyes but the school still has to pay for the pizza that we buy.
ReplyDelete2. Economic actions create secondary effects: This means that whatever people decide to buy or sell that day will change the economy in some way. If people decide all of a sudden that they love milk, then the price of milk will go up due to low supply. If half of the world turned lactose and tolerate, then milk wouldn’t be popular and the price would go down due to high supply and low demand. This relates to my life because the salary of my parents directly relates to my salary. If my parents both lost their jobs one day then I would probably also have no allowance anymore. Since they are not gaining any money, then I wouldn’t gain any money either as a secondary effect.
3. People Gain from voluntary trade: Since the world is no longer independent from other countries, most countries will need trade. If one country is good at making a certain good, but are in need of another good then they will trade with someone. The same goes in my life. If I have two erasers in class but I don’t have a writing utensil then I will ask someone to trade with me. And if I’m lucky enough to find someone who needs an eraser but has a pencil then voluntary trade has been done.
1.Everything has a cost, for example on Christmas teens think they get free presents that they didn’t buy but technically it did cost them but not directly. Since their parents bought them the gift or their brother did it took away from something they could have gotten later on, take a soccer shoe for example you could buy the best shoe on the market but 3 months later they won’t be the hottest or best shoe on the market and probably cheaper. If you would have waited you could have had them buy you a better shoe or the same shoe for less. Therefore you will always have to pay for something even if you don’t think you spent money on it, like those commercials that sell paints or something, “BUT WAIT! IF YOU CALL IN THE NEXT 10 MINUTES YOU GET ANOTHER PAINT BRUSH, ABSOULUTLEY FREE!” But then they say quickly, “Just pay shipping and handling.” So technically it’s not free your just paying in a different way. Everything has a cost.
ReplyDelete2.People gain from voluntary trade, on my soccer team kid’s trade their used shoes for other gear like a ball or something, and the parties who had decided the trade both gained something they wanted and gave up something they didn’t necessarily need and or want. Therefore both kids will be happy and positively gain from these types of trades.
3.Incentives in economics matter! For example take real estate into account, last year the government was offering an incentive when you buy a house. For first time home buyers you would receive 8,000$ at the end of the year in rebate because you bought your house first time and this put housing sales way up, and now this year the incentive is no longer in effect and the sale of homes isn’t as high as it was last year. Same thing applied to second time home buyers, they would receive 2,000$ at the end of the year in rebate. Incentives defiantly matter to the economy.
1.Everything has a cost. In the economic point of view, everything does have a cost. Like Mr. Wheelan said in Naked Economics, everybody is trying to maximize their own utility. People don’t provide goods or services for free because it desn’t make them better off. For example, if I go to a store I can’t just pick out my favorite shirt and take it home. I have to pay for it because if I didn’t the store would be worse off than before. If I pay for it than the store makes money and I get a new shirt; so it’s a win-win situation.
ReplyDelete2.People gain from voluntary trade. Trading is so successful because it is also a win-win situation. It allows us to get things we wouldn’t have, or can’t produce on our own. But instead of paying money we pay with goods that the other party can’t produce on it’s own. For example, last year for Christmas my aunt gave me and my sister pajama pants. Mine had Minnie mouse on them and my sister’s had snowflakes. But, my sister liked the Minnie Mouse ones and I prefered the snowflakes so after we left my aunt’s house we traded. This made us both better off because we both ggot our favorite pair of pants out of the two.
3.Insentives matter. Without incentives no one would be motivated to produce. The reason Producers make goods or provide services is that they get something out of it, usually money. So in that case money is the insentive and maybe the producer is saving up for a new house or a car, which are also examples of incentives. My mom usually gives me incentives to clean my room or help her around the house. If cleaning my room results in going out to dinner then I clean it better and my mom is happier because she can’t stand a messy room. So in the end, we are both satisfied.
1. My first way of thinking is incentives matter. Incentives matter means that if someone doesn’t have a legitimate reason to do something, then they won’t do it, and vice versa. This applies to the real world in that if a company doesn’t pay their employees enough for what work they are doing, they will go on strike or leave. This applies to me in the same way, if someone offers to give me five dollars to mow their lawn, I wouldn’t have an incentive to mow it if it was a big lawn, but if it was a very small lawn I would have the incentive to mow the lawn.
ReplyDelete2. My second way of thinking is people gain from voluntary trade. This means that whenever people trade with another person they always get something of equal or greater vaule in return. In the world people trade money with other people in order to get a good or service. They also make sure that they give a fair amount of money for the goods or services they are receiving. People would not make the trade if it would be a bad deal for them. This applied to me when I was a kid and into all sorts of trading card games. I wouldn’t trade a card for my friend’s card if I wasn’t getting something fair in return, and in the end both of us were better off because we got what we wanted.
3. My third was of thinking is that the value of a good or service is affected by people’s choices. This means that competitors have to change prices or quality when the other company is beating them in sales. An example of this is if Coke was out selling Pepsi they would have to either make their soda taste better or lower the price of their soda if they wanted to get up to the level that Coke is at. This applies to me when buying a bike, if company A makes a much better bike than company B and they’re both the same price it would be obvious which I would buy. But if company B lowered the price of their bike I would have a more even decision to make.
1) Incentives Matter. Whether at school or at work there are incentives for everyone. Employees will go that extra mile for a larger pay. Students will work harders if their teachers promise extra credit or on rare occasions a party. Incentives give people the drive to do things.
ReplyDelete2) Everything has a cost. Everyday at lunch I think about what to order. Today was tacos. In my decision I always think how much will it cost. Not only in the matters of price but of future value to my utility. Pizza is well more expensive than tacos but it is also bigger. Getting the pizza means that I gain less in my pocket but more in my stomach meaning I'll be fuller and less hungry in the afternoon. But with tacos I keep more in pocket but less in my stomach.
3) People gain from voluntary trade. A few years ago my friend and I just got back from trick or treating. After a few hours of walking we were exhausted and once we got to his house we threw all of our candy on the floor. Then we started trading candy. Whether it was Reeses for Snickers or Twix for Kit-Kats. Trading away the candy we hate for the candy we love. Gaining our utility but also the utility of our parents.
1. Incentives matter. Humans are animals. Every single decision we make is in response to a motivation. There has to be a motivation in order for us to act. There are different ways to motivate people. The most common ways are through punishment or reward. History has shown people respond better to the latter. No dictatorship with a communist economy has ever been successful because there is no reward for doing good work. It is necessary for an economy to propser to have an incentive to do good work. In a free market, this incentive is making more money or gaining utility. Teachers use this theory as well. Most teachers check homework for participation points because it's a reward for doing the homework. They don't beat you if you don't have it, you just don't get the points.
ReplyDeleteThe test of a theory is its ability to predict correctly. In economics, theories will never be 100% correct. There will always be some people who don't go along with the trend. Good theories are different from bad ones because good theories apply to a wider range of people. I can say "my theory is that people burn money instead of using it," and it's still a theory and may be true every once in a blue moon. However, since it doesn't predict correctly very often it's a bad theory. For good theories, the opposite is true. A good theory is that students like to earn good grades. Some may not want straight A's because it raises expectations, but for a large majority of the student population this is true, making it a good theory.
The value of a good or service is affected by people's choices. This all relies on supply and demand, specifically the demand part. If a lot of people are willing to buy a product, it is more valuable even though the product never actually changed. This is because the profits earned from the product are greater, making it more valuable. The opposite is true as well. If nobody wants to buy a product (or knows about it), it's valueless because it doesn't provide any money to the owners even if it might be the greatest product on the market. How people choose to spend their money decide the value of a good. During a bake sale, if there are hundreds of people willing to buy a brownie for a dollar, it's more valueable than an equally delicious, but gross looking brownie people are unwilling to buy.
1. Incentives matter. If I want to try out for a softball team so that I can play over the summer I have to try hard and do my best so that they pick me for the team. Without the incentive of wanting to play softball I wouldn’t try very hard and most likely wouldn’t make the team. Therefore, I will play hard to get what I want which is to play softball and do whatever it takes to make that happen.
ReplyDelete2. Everything has a cost. When I buy songs from iTunes that I love at the moment and it only cost 1 dollar or so then I’m happy with my purchase, but later on I may not like it as much as before so I regret spending my money on that song instead of another. The cost is having a song that I might not even listen to anymore instead of one I would, but I have to pay the price.
3. People gain from voluntary trade. On Halloween kids like me go all around their neighborhood to get candy with their friends. After trick-or-treating kids go back home with all their candy and see what candy they like and don’t like. I take the candy I don’t like and trade it with my friends that do like it for something I want. This way we both get candy we like and get rid of the candy we don’t like. This way everybody wins.
Everything has a cost:
ReplyDeleteWhen you think of a cost what comes to mind? Normally money would come first but there are other ‘hidden’ costs, such as time, safety, or even welfare. If I were to spend an hour on my phone playing games or going on Facebook (which does not cost any money), that is an hour I could have spent studying. Therefore the cost of me going on Facebook is getting a better grade. Another example of how this applies to daily life is taking a ‘free’ sample at a grocery store. You do not have to pay any money for it so most likely you will try it. Even though this may be free for you, the company offering the samples has to pay to have them produced, and do not get any money directly from giving out the samples. They take no money now, and more money later when you decide to buy their product, and waiting for the income is also a cost in this situation.
Incentives matter:
The only reason why we do things is for incentives. Unless I will get something in return for my time, effort, or money, chances are, I will not do it, and this is just natural human behavior. So because there are college scholarships for getting good grades or excelling in sports, I work hard in school to get the best grades I can, and I commit myself to playing golf matches in the hot sun while wearing our black golf polo uniforms, which can be very uncomfortable. I could very well go on Facebook instead of practice sports, but the only incentive is talking to my friends, which I could very well do in school.
Economic thinking is marginal thinking:
In order to make a smart economic decision, you must first find a way to derive the most utility possible, or maximize the benefits of your decision. In order to do this, the marginal benefits of your decision must outweigh the marginal costs. An example of this is when I went back to school shopping… yay. I could either get a cheap paper folder for $0.25 or I could get a quality folder for $1.39, which is more durable and could hold more papers. I decided on buying the second folder because I would be much more organized than last year, because I had cheap folders that broke (ask Bridget), and I wouldn’t have to return to the store to buy a new folder at a higher price once the sales were over. The benefits of convenience, organization, and utility outweighed the extra $1.14 spent on the more expensive folder. Another example of maximizing utility is when I went golf polo shopping. I could get top of the line clothes at Golf Galaxy, o.k. polos at Aero, or cheap ones at Kohl’s. Since I play golf competitively, I need comfortable clothes to wear and ones that won’t bunch up every time I swing. That is why I chose the Golf Galaxy polos because they are more durable, comfortable, and they are actual golf polos.
“Everything has a cost” “People choose for good reasons” and “people gain from voluntary trade” are three of the economic ways of thinking that apply to our lives. Every good or service has a cost and it must be paid by the consumer if they want to purchase that good or service. So if I want to get a new laptop to have for school but I also want a new iPod I can’t get both because everything has a cost. So I would have to spend that money on one or the other thing. To go along with this idea, people make voluntary trades on a daily basis. Going back to the previous example, let’s say my laptop broke and school is starting and my iPod still works but I just want a new one because I don’t like the color anymore. I would choose the laptop because I would gain from that choice because I would do better in school rather than if I bought the iPod and was unable to do homework. And lastly, another example to go along with this is that people choose for good reasons. I would choose the laptop over iPod for a good reason, the laptop would be useful for school but an iPod would not.
ReplyDeleteThere are many different aspects that go into having an economic outlook on life, including, the tradeoffs that people face every day, the way incentives effect people, and how much better off trade makes people and firms. People make tradeoffs every day, whether it’s intentional or not. Tradeoffs are simple, but can often end up affecting the rest of your life. Many tradeoffs are trivial, such as I could buy a sandwich today for lunch, but then I won’t have enough money to be able to afford the new purse coach is introducing in its summer line, but sometimes they can be much more important than that, and even end up affecting your future. Such as, I could go work at McDonalds for the rest of my life so I don’t have to attend any more school than required by the state, or I could go to college so that I can support myself later in life. People also make many of their decisions based on the incentives given. I tend to use incentives most often when babysitting. I’ve found that the most effective way to get kids to behave is bribery; give them the right incentives, and you can have them doing whatever you want, with the benefit of both of you leaving happily by the end of the night. Lastly, trade helps make everyone better off. I use trade every day, and I almost always use it at lunch. Each and every morning my mom packs me an applesauce in my lunch, but I’m not a huge fan of applesauce, unlike one of my best friends Jaclyn. Jaclyn on the other hand adores her applesauce, but her mom never buys it because she’s the only one in her house that likes it; so every day at lunch Jaclyn brings me something different that I like in return for my applesauce, so not only does she get her applesauce that her mom deprives her from at home, but I also get something that I enjoy much more than applesauce everyday with my lunch, making us both much happier with our choices for lunch.
ReplyDeleteEverything has a cost: If i decide to wait to study for a test until the night before , because I spent my nights doing something that seems more important to me, I may have fun those nights, but it will have a bad affect in the long run. In the long run, the cost of me spending my nights doing something else and waiting to study, is possibly getting a bad grade because I am not completely prepared.
ReplyDeleteThe value of a good or service is affected by people's choice: This is basically based off of supply and demand. For example; if i go to fill up my car with gas, and their is currently a low supply, but a high demand, the gas stations may raise the price of the gas because of such a a high demand. Therefore I may not be able to buy gas at that time, and those who only either have enough money or really need the gas would be able to buy it.
Incentives matter: Most people don't do the things they do without reason or incentive. For example; this year I want to try out for basketball. In order to be ready for tryouts I need to run, workout, and practice a lot to be in shape and prepared. Normally I wouldn't want to do any of that because I could be spending my time doing something I would much rather be doing. But because I want to be on the team, I have the incentive to work out and practice so I will make it.
1. Everything has a cost. Simply, one choice I decide to make will cause me to lose a chance at something else, or I will lose the oppurtunity to do so. If I choose to eat 1000 ice cream bars in a single day, it sure tastes good, but the cost is that I gained thoasands of extra calories I didn't need.
ReplyDelete2. Incentives matter. I do not do homework because I enjoy doing it, I do homework because it helps me achieve good grades, and consequently helps on getting a great job in society. I would not choose to do homework assignments if it did not have an outcome on my life, since there would be no incentive to do so.
3. The value of a good or service is affected by people's choices. Products are at low prices if no one desires them, and vice versa. If I wish to buy a new video game that just came out, and everyone else's choice is to buy one also, that game will go up in value because so many others want it. If no one chooses to get a game from 15 years ago, it will of course go down in dollar value. There is no longer a large demand for it.
People choose for a good reason- I don’t just buy the first product in the aisle. I compare the quality of the product. For example, I don’t just take the store brand paper towels. I compare the durability and cost. If the number one selling paper towel brand is cheaper and more durable than the next one, I’m obviously going to pick the better brand because it’s better for me.
ReplyDeleteThe value of a good or service is affected by people’s choices- If I’m walking in the mall I’m going to go into my favorite store instead of their competitors. Let’s take Best Buy and Circuit City, I chose to go to Best Buy over Circuit City because I like Best Buy better overall. I, therefore, am one of the reasons why Circuit City went out of business. The value of Circuit City was lower than Best Buy because people liked Best Buy better.
People gain from voluntary trade- People trade so they can be better off. When I was little I traded cards all the time. If my friend had a card that I wanted, I would trade him for a card that he wanted. We both win, I get the card I want and he gets the card he wants so now we are both better off.
Everything has a cost. When I bought my phone the phone didn't cost anything. But technically it wasn’t free. The phone came free only after I had agreed to be tied to T-Mobile for four years. Thus it was not really free because I had to sign up to be in on the plan for the next four years and if I wanted to switch plans then I had to pay money to switch out of the contract. So basically that “free” phone tied me to T-Mobiles service for four years.
ReplyDeleteIncentives matter. Incentives are important because they make people want to do things. When I was little my mom would buy me candy bars if I was well behaved while we were at the store. This made me want to be on my best behavior to make mom happy and to earn that delicious candy bar at the end of the trip.
The value of goods and services are affected by people’s choices. At the time before homecoming all the dresses were very expensive because the stores knew people would pay the price to get a dress for homecoming. But after homecoming is over the prices start to fall. The stores know that most of their dresses will not be sold if they are kept at that price because not many people have other occasions to wear such fancy clothes. Thus the prices fall because they are no longer worth as much due to the fact customers don’t want them as much.
It’s true that everything has a cost, but not all cost have to deal with money. By doing a job you earn money that can get you more things that you want or need to buy. Every minute you are working you take away time that could have been spent going out with friends or studying etc. Every day I spend watching TV is time that I could have been studying or doing homework. There for I won’t have much time to finish my work and study which leaves me with a lower grade. The cost was my time that could have been spent more productively.
ReplyDeleteEvery decision we make has a trade off. We must sacrifice one thing in order to gain another. Last year when I was deciding my schedule I had too many classes and not enough periods. In order for me to take choir I had to give up driver’s education and introduction to business. Now I’m going to have to take drivers education after school and take business hopefully next year.
Incentives motivate people into to doing things. In the past and presently my parents will try to bring me shopping with them when I didn’t want to go. One way of motivating me was to bribe me into coming. My parents told that they would buy me new shoes, clothing or even candy so that I’ll tag along.
People Respond to Incentives:
ReplyDeleteIndividuals try to derive the most utility out of any product or service. This is a fundamental law in our economy. The people whom work to produce this good or service, are working for the sole benefit of their own utility. In other words, their hard work is rewarded with compensation for “getting the job done.” This compensation is known as money. Asian sweatshop workers can earn dollars an hour just to provide for their family, or a corporate executive can earn hundreds of dollars an hour to go on cruise vacations with his family. Both of them derive utility in some way, and this is what drives individuals to produce; these are incentives. An individual’s incentive to produce is merely compensation between the buyer and seller. The seller provides a service for the buyer for a cost. The cost is ultimately money, and through purchasing with money is how individuals extract their utility. The same concept can apply to my life. I tutor a fourth grader, who needs a little extra help in reading and comprehension. The dad (the buyer) is buying my service (the seller) to tutor his son. My incentive for doing this is the 10 dollars an hour I charge for this service, and at which at the end of the week I am free to spend on whatever satisfies me the most.
The Cost of Something is What you Give Up to Get it:
Whether a toddler wants the latest Power Rangers, or a teenager wants a fully loaded BMW, both of these products require some work either directly or indirectly; either your mom gives you the money for that new car (she had to work for it), or you earn the money yourself. Both ways of acquiring your desired good or service provides some sort of cost to you. The Power Ranger or car has the cost of money for example. You or your mother gave up the time and effort to earn that extra buck for that navigation system. A cost of her or your time compensates with the brand new car. College is a prime example of this. I am trying to get into either Babson College or Harvard University. The acceptance rate for Harvard is a drastically low 7%, and Babson is the number one school in the world for entrepreneurs. As you can see, these are very competitive high schools, and the cost of going there is what you’re willing to give up of your time to show your exceptionality that sets you apart from the other thousands of applicants. The amount of time and work I must commit is a cost in itself, and that’s not even including the price tag of the tuition.
A Country’s Standard of Living Depends on its Ability to Produce Goods and Services:
The country’s standard of living depends on its ability to produce goods and services is a bit controversial. It’s controversial in the fact that the answer is both yes, and no. In our society, we have a measurement for the amount of goods and services produced called the GDP rating. (Gross Domestic Product) The GDP rate is the amount of goods and services produced within one year. The idea here is that if we produce more services and goods we are better off as we are more efficient as an economy. This would provide the yes answer to our question as we are more productive, and thus afford more utilities. The no answer to this query lies in the detail that the GDP rating is just a statistic; more importantly everyone has a different view of what makes them happier. The concept of more money equals more happiness does not apply to everybody. I have a friend who is constantly spending money on materials that not all necessarily make him happier as a person. Different utilities such as love or friendship cannot be bought, and thus has no relation to the GDP. I see this, and realize that I derive more utility out of relationships than out of the newest video gaming system. The economy cannot uniformly measure this however, but then again everyone else’s view of the standard of living is different. There really is no black and white way to tell, but examining the grey area is our best bet.
People Respond to Incentives:
ReplyDeleteIndividuals try to derive the most utility out of any product or service. This is a fundamental law in our economy. The people whom work to produce this good or service, are working for the sole benefit of their own utility. In other words, their hard work is rewarded with compensation for “getting the job done.” This compensation is known as money. Asian sweatshop workers can earn dollars an hour just to provide for their family, or a corporate executive can earn hundreds of dollars an hour to go on cruise vacations with his family. Both of them derive utility in some way, and this is what drives individuals to produce; these are incentives. An individual’s incentive to produce is merely compensation between the buyer and seller. The seller provides a service for the buyer for a cost. The cost is ultimately money, and through purchasing with money is how individuals extract their utility. The same concept can apply to my life. I tutor a fourth grader, who needs a little extra help in reading and comprehension. The dad (the buyer) is buying my service (the seller) to tutor his son. My incentive for doing this is the 10 dollars an hour I charge for this service, and at which at the end of the week I am free to spend on whatever satisfies me the most.
The Cost of Something is What you Give Up to Get it:
Whether a toddler wants the latest Power Rangers, or a teenager wants a fully loaded BMW, both of these products require some work either directly or indirectly; either your mom gives you the money for that new car (she had to work for it), or you earn the money yourself. Both ways of acquiring your desired good or service provides some sort of cost to you. The Power Ranger or car has the cost of money for example. You or your mother gave up the time and effort to earn that extra buck for that navigation system. A cost of her or your time compensates with the brand new car. College is a prime example of this. I am trying to get into either Babson College or Harvard University. The acceptance rate for Harvard is a drastically low 7%, and Babson is the number one school in the world for entrepreneurs. As you can see, these are very competitive high schools, and the cost of going there is what you’re willing to give up of your time to show your exceptionality that sets you apart from the other thousands of applicants. The amount of time and work I must commit is a cost in itself, and that’s not even including the price tag of the tuition.
People Respond to Incentives:
ReplyDeleteIndividuals try to derive the most utility out of any product or service. This is a fundamental law in our economy. The people whom work to produce this good or service, are working for the sole benefit of their own utility. In other words, their hard work is rewarded with compensation for “getting the job done.” This compensation is known as money. Asian sweatshop workers can earn dollars an hour just to provide for their family, or a corporate executive can earn hundreds of dollars an hour to go on cruise vacations with his family. Both of them derive utility in some way, and this is what drives individuals to produce; these are incentives. An individual’s incentive to produce is merely compensation between the buyer and seller. The seller provides a service for the buyer for a cost. The cost is ultimately money, and through purchasing with money is how individuals extract their utility. The same concept can apply to my life. I tutor a fourth grader, who needs a little extra help in reading and comprehension. The dad (the buyer) is buying my service (the seller) to tutor his son. My incentive for doing this is the 10 dollars an hour I charge for this service, and at which at the end of the week I am free to spend on whatever satisfies me the most.
The Cost of Something is What you Give Up to Get it:
ReplyDeleteWhether a toddler wants the latest Power Rangers, or a teenager wants a fully loaded BMW, both of these products require some work either directly or indirectly; either your mom gives you the money for that new car (she had to work for it), or you earn the money yourself. Both ways of acquiring your desired good or service provides some sort of cost to you. The Power Ranger or car has the cost of money for example. You or your mother gave up the time and effort to earn that extra buck for that navigation system. A cost of her or your time compensates with the brand new car. College is a prime example of this. I am trying to get into either Babson College or Harvard University. The acceptance rate for Harvard is a drastically low 7%, and Babson is the number one school in the world for entrepreneurs. As you can see, these are very competitive high schools, and the cost of going there is what you’re willing to give up of your time to show your exceptionality that sets you apart from the other thousands of applicants. The amount of time and work I must commit is a cost in itself, and that’s not even including the price tag of the tuition.
A Country’s Standard of Living Depends on its Ability to Produce Goods and Services:
ReplyDeleteThe country’s standard of living depends on its ability to produce goods and services is a bit controversial. It’s controversial in the fact that the answer is both yes, and no. In our society, we have a measurement for the amount of goods and services produced called the GDP rating. (Gross Domestic Product) The GDP rate is the amount of goods and services produced within one year. The idea here is that if we produce more services and goods we are better off as we are more efficient as an economy. This would provide the yes answer to our question as we are more productive, and thus afford more utilities. The no answer to this query lies in the detail that the GDP rating is just a statistic; more importantly everyone has a different view of what makes them happier. The concept of more money equals more happiness does not apply to everybody. I have a friend who is constantly spending money on materials that not all necessarily make him happier as a person. Different utilities such as love or friendship cannot be bought, and thus has no relation to the GDP. I see this, and realize that I derive more utility out of relationships than out of the newest video gaming system. The economy cannot uniformly measure this however, but then again everyone else’s view of the standard of living is different. There really is no black and white way to tell, but examining the grey area is our best bet.
1.) People choose for good reasons-
ReplyDeleteThis means that people choose things that will benefit them and don't randomly buy things that will not help them. This makes businesses successful since they can predict what people want in a certain climate or place. For example if someone moves to Antarctica and they only have t-shirts and shorts they will probably buy a coat and other warm cloths so that they don’t freeze to death when they go outside. I use this in my own life when I purchase something online and I need it the next day. When I needed soccer shoes i ordered them and chose the cheapest shipping because I didn't need them until two weeks so i did not need to pay an extra $20 to have them shipped overnight.
2.) Economic actions make secondary effects-
This means that when somebody makes a decision there may be an effect that is unpredicted. For example if someone decides to make a firm that helps animals in the middle of the rainforest then they may realize that they destroyed more animal homes with the building they saved or helped. This has happened in my life when I decide to watch TV the secondary effect is my mom gets mad at me.
3.) The test of theory is its ability to predict correctly-
This means that in a market economy if you can predict the way the market will react to different situations then you should be very successful investing in it. For example if you run a gas station and you have a theory that electric cars will become very popular then you would convert all your pumps to charging stations. This way you earn more profit than your competitors. But if you are wrong you lose money. In my life when I have to do my homework I predict that it will be due the next day that way I am successful at getting my homework in on time.
Everything has a cost: When any purchase is made, the cost of that purchase is not only the dollar value spent, but also what is given up. For example, when I choose to buy a chicken fajita burrito at Chipotle (once it opens :]), I am sacrificing buying something else with that money. Down the road if I’m $6.50 short on a tuition payment or a down payment on a home, I might wish I hadn’t bought that burrito. In the meantime the food is well worth the cost. Cost can relate to not only money, but also things like time and resources.
ReplyDeleteIncentives matter: All of our decisions regarding economics, and life in general, are affected by the incentives involved. Incentives are the motivation behind all of our actions. If, for example, a teacher assigns a reading to his students with the warning that they will be tested on it the following day, the students have more motivation, or incentive to read. On the other hand, if the teacher told them the reading was for their benefit, but would not be discussed in class, the students would be more likely to ignore the assignment. In a similar manner, AP level courses offer the incentive of potentially earning college credit and thus saving money on college tuition later. Without this incentive, very few students would voluntarily sacrifice precious hours of sleep at night, time with friends, and ultimately their sanity in order to take the course. Incentives play a major role in the process of making most decisions.
People gain from voluntary trade: Yet another aspect of economics that relates to life would be the idea of voluntary trade and the benefits that accompany it. Voluntary trade is when multiple individuals offer up (by their own will) something of their own in exchange for goods from someone else. Halloween is definitely a prime night for voluntary trade. After a long day on the streets of Grayslake, racking up as much candy as possible, my friends and I would always settle down at the local trading post (also known as my living room) for some high-quality voluntary trade. Chocolate lovers could trade away their fruity candy, while starburst and skittles lovers could offer up their chocolate in exchange. It was also a good way to get rid of those Almond Joys that I always seemed to accumulate, despite having no interest whatsoever in eating them. This system of voluntary trade benefits all parties as they decide which goods they are willing to trade and what they are looking for in exchange.
Everything has a cost for example at a parade, businesses and political figures pass out “free” candy, nail files, or even stickers for good publicity. Even though it took time to make and package the items that people receive as free. In another scenario my sister decided to buy a dress, but used money that she could have saved for a car. In another case, getting a gift certificate for a lunch, it isn’t really free because someone had to take the time and money to purchase the gift for you, when they could've been doing something more productive.
ReplyDeletePeople choose for good reasons for example Jewel Osco isn’t as popular as Super Wal-mart because at the Super Wal-mart you can buy pretty much anything in one trip besides just groceries at a lower cost. My family tends to go to the Super Wal-mart over the Jewel because we can save more for food. Another example is Kohl’s and JcPenney, people tend to prefer Kohl’s because of their sales and advertisement, even though JcPenney sells similar products.
Incentives matter, for example children go to school to go to college, not just to have fun or learn. Students strive for the best job they can get where they earn the most money. In family life parents go to work everyday to make sure they have security and other necessities in life for not only themselves, but their kids as well.
People choose for good reasons. Say I go to the car lot to buy a car, and the dealer shows me two different cars that he had for sale and thought I might like. One is a used mustang, and the other is a brand new sedan. I like new cars, but I also don't want to pay a lot for one. So I ask him the price of each, and the car salesman tells me that the sedan costs more than the mustang, but the mustang doesn't have very many miles on it. I will choose the used mustang because i like sports cars, but also because I want the cheaper car.
ReplyDeleteEverything has a cost. If I go to the dentist to get a cleaning, at the end the dentist will pack up a little bag for me full of things I need to take care of my teeth. There could be a toothbrush, floss, toothpaste, and mouthwash in this free bag. But even though this bag might be free to me, there were a lot of costs involved with making it. The factory had to pay to make my toothbrush, and the dentists had to pay to get it. Everything that's advertised as free is not really free, but actually cost something to someone.
Incentives matter. When someone goes to a barn to buy a horse, they will see that there are many horses for sale. There are all types of colors and levels of training and temperament among the horses. This person loves white horses, but also needs a very patient horse, because they are new to riding. The only white horses this barn has are energetic, impatient horses. The most patient horse they have is brown, and even though this person really wanted a white horse, they chose the brown one instead. They did this because they knew that if they got the white one, they wouldn't be able to ride it, and that was their point in buying a horse.
Everything has a cost is the way of saying when you buy something or do something you no longer have that money or time to do something else. This associates with me because of my videogame playing habits I no longer have the time to do homework or something else fun with my friends. I also lose the money to buy an important item like new football cleats. Incentives matter because people look at that and think they are getting a deal making them want the product even more. This applies to me because when I go to buy a videogame or other electronics, I look to see if you buy this game you get another one for a lower price or free. People chose for a good reason is when you chose one brand or store over another for some reason you and most people would say is reasonable. This applies to me because I choose to shop at Wal-Mart instead of Jewel Osco or Garden Fresh Market.
ReplyDeleteThe first way that economic thinking is applied to my life is that everything has a cost.
ReplyDeleteWhen I go to the store and I see a sign that says buy one get one free, I must stop and think, do I really need to buy that item or am I just being lured in by the thought of getting a discount price or another item free. Also, if I have to factor in the time it takes me to get the item. For example, if I could get ice cream for $3 5 minutes away, but I could get the same ice cream for only $2 10 minutes away, I have to decide how bad I want that ice cream.
The second way thinking is applied to my life is that incentives matter. Incentives matter because it is one of the things that make us choose one product over another. Whenever you are looking to buy a new item and can't decide which of them to buy, you probably look at which one of them has extras the other ones don't. Also, along with my first choice, you must decide how much you are willing to pay for the extra incentives.
My last economic way of thinking is that people choose for good reasons. Nobody on earth ever chooses to buy a product because it made them worse off; we buy products to bring us enjoyment and to keep us alive. So whenever you go to the store and are about to buy a product, you are more than likely ask to yourself whether or not you will be better off with this item.
1.) Incentives matter. This statement is essential to all aspects of life. For almost everything we do there’s some incentive. My dad goes to work everyday to support my family. My sister goes to soccer practice everyday to get better, and potentially have a career in that area. My friends with permits have an incentive to go and drive in order to obtain enough hours to receive a license. I go to school and work hard so I can go to any college I want and get my dream job. Without incentives, there is little motivation or reason to do anything. Incentives increase productivity in society. And productivity leads to a successful, wealthy nation.
ReplyDelete2.) The cost of something is what you give up to get it. This is true for everything. The amount of money, for example, of what you pay, for lets say, a bagel is what you are willing to pay. Most people wouldn’t pay ten dollars for a bagel, but many people would pay one dollar for a bagel; it is what they chose to give up in order to get the bagel. You’re giving up something in exchange for something else. Some people are willing to pay more money for goods made in Europe than the same good made in China; they are giving up more money in order to get something they believe is of good quality. I am giving up much time in order to get good grades on my homework, rather than little time to do poorly on my homework. The “cost” can mean time, money, or a service. In our heads we weigh the cost with how much we want or need the good or service. Every good/service’s sale depends on its price to the consumer.
3.) Trade can make everyone better off. Trading allows nation’s cultures to diffuse and overall makes both nations more diversified. When trade occurs both parties are trading because they are receiving a good/service that is more desirable to them than the good/service that they are giving up in exchange. This makes both parties happy and better off. In my life, my best friend borrows my clothes. The tradeoff? She makes me food! She is willing to prepare me food because she believes it is worth it to get my clothes. Me, on the other hand, could care less about letting her borrow my clothes (well for the most part) so I see the food as a great deal! Both of us our now better off. Nations do this all the time, but in many cases it can deal with natural resources. One nation prospers in a natural resource and the other nation has a mass amount of a different natural resource, the two nations trade. Each nation is better off. All over the world trade has made everyone better off.
The 3 main economic ways of thinking that relate to my life are:
ReplyDelete1. Everything has a cost. This means that you cannot get something for nothing in return. In life, this is similiar to copy your homework from someone else. In the moment, it may feel like you are getting the work done without having to actually do anything. But in the long-run, you won't know the information as well for a test, then if you would have actually done the homework yourself.
2. Incentives matter. This is the reason behind someone doing something. In life, there is always a reason someone is asking or doing something. Whether it is for personal gain, or to prevent others from doing something, there are always incentives backing everything you do. When a boy asks a girl if he likes her, it isn't to just know. It is most likely because he likes her too.
3. People face tradeoffs. This is similiar to the saying "you can't have your cake and eat it too." In life, you can't have both of the things you want, without losing something in return. If you want to play sports during the school year, it's going to be hard for you to be in any of the clubs you really want to be in. This happened to me when I wanted to play softball and be in Best Buddies. I couldn't do both, simply because it conflicted with my schedule. This will happen all throughout life.
-Everything has a cost: Economists often say, “No free lunch.” Keeping it literal, why does McDonalds occasionally give away “free” food? It costs them money for the buns, meat, potatoes, lettuce… And yet, they can give it away. The answer is that it’s not really “free.” It costs the consumer time (and gasoline) to get to the restaurant. Maybe they give it to you because you had the lucky Monopoly stamp, in which case you would have had to have bought food there before. Maybe they messed something up, but, again, you already bought something. But McDonald’s still makes money. The free products tell people that they know how to treat their customers, so people receiving free products will probably come back to spend more money. Nothing is “free.”
ReplyDelete-People gain from voluntary trade: Simple: if you trade what you have for what you need/want, you will be better off. You have handmade jewelry that someone in Europe/the U.S. will want; you trade it for food and medicine. You have incredibly large, beautiful diamonds; you trade them for enough clothing to give a full wardrobe to the entire country. Going back to one of the most basic economic principles, voluntary trade will boost your utility.
-The value of a good or service is affected by people’s choices: Gasoline is THE fuel. Everybody needs it. But if someone were to find a way to make a cheaper and superior fuel, people will most likely dump gasoline for the alternative fuel, and gas prices will plummet. The same is true for most goods and services. People want efficiency, and they want it cheap.
Everything has a cost. This means that when you choose to do something you also choose to spend that time not doing something else. When you buy something you also choose not to spend that money on something else. So, if I were to buy a new pair of $200 cleats, I choose to not spend that money on food or any other up and coming thing because I spent it on those cleats already.
ReplyDeleteIncentives matter. I chose this particular item off of the list I was given because it is true. The way that you are convinced to do something does matter. One example I have from a recent experience was this weekend I went to a concert with my little sister because she loves the bandsd that were playing and she wasn’t allowed to go without me or a parent. My incentive to go was that I don’t mind the bands and I benefit from going because my parents appreciate not having to go and listen to loud music for three hours. If I had no incentive, I wouldn’t have gone.
Economic actions create secondary effects. This was my favorite item off of this list because it is so true. When I buy a new pair of shoes, not only have I benefitted my getting a brand new pair of shoes, the company benefits from the profit I am giving them when I pay for them. A personal example that I have is when my little sister who’s four has her little lemonade stand in the front yard. When I pay her 25 cents for that little cup of lemonade, I don’t only benefit from the glass of lemonade I bought, and not only does she benefit from the 25 cents I just gave her, I increase her independence every time I buy something from her.
1. People gain from voluntary trade. I can relate this to my life from the time got new dance uniforms. My shirt ended up being to big, while my friends shirt was too small for her. We decided to try on eachothers shirt and they fit perfectly, so we traded and we were both happy since we had uniforms that fit. So we both benefited from the trade, in the end.
ReplyDelete2. Incentives matter. Incentives can potentially persuade consumers to buy a certain product or service. In my case my dentist provides an incentive to get people to come to her office. They will give free whitening for life to anyone who signs up for their dentist service. This benefits both the owner and the consumer, the owner of the dentist gets people to stay at her office because that’s the only way to receive their whitening. The consumer benefits by getting free teeth whitening for life
3. Everything has a cost whether it is money or a personal item. In my case it is the environment. My dad drives past school on his way to work so he drops me off, as it is not out of his way to do so. No harm done right? Wrong. There is damage done to the environment when I choose to drive with my dad rather than take the bus, which is like a giant carpool saving a lot of money, gas, and pollution. Although there is not a cost directly to me or my dad right now, taking the car will worsen global warming and therefore harm the earth and its' future.
1)The value of a good or service is affected by people's choices. For example, the price of candy at lunch was a dollar until this year. The price was probably raised because they knew that kids would pay the extra twenty-five cents because we still want our candy. If nobody really wanted candy that much, they would prbably have lowered the price or not sold it at all because if people don't want it, it's not valueable.
ReplyDelete2)People gain from voluntary trade. My sister and I both got $20 gift cards for Christmas from our Grandma's friend. Hers was for iTunes and mine was for Target. She uses Limewire for music and I didn't really need anything from Target (although I'm sure I could find something), so we traded. I could buy music and apps and she could buy food or whatever she needed, $20 dollars at Target is much more useful than $20 on iTunes for a college student and I was happier with my $20 worth of apps and songs, even though really they had the same value.
3)Everything has a cost. When I was staying at my Aunt's house, my cousins and I decided to go to the church picnic early to "help set up", we really were just going for the free doughnuts. So while all the men unloaded the trailers of tables and tents and everything, we ate our "free" doughnuts. First of all, somebody bought the doughnuts so money-wise, it cost somebody something. Even though my cousins and I weren't working for the doughnuts, we still could have slept in another hour and not been so tired all day, so it really costed us an hour of sleep.