A New House Decision

The 10 principles of economics certainly ‘plays’ a role in the decision to purchase a new home. After investigating the 10 principles an individual should compare the marginal benefits with the marginal costs to verify if the purchase of a new home is beneficial. The vigor of the economy could affect the marginal benefits and marginal costs, thus ultimately affecting the decision to purchase a new home. This vigor of the economy relies on the domestic trade and global (international) trade conducted within the country as well as with other countries. The decision to purchase a new home may depend on the money saved, the vigor of the economy, and the reliability of the individual’s profession. As a consequence, as I decide to purchase a new home, I will be investigating numerous principles directly related to the decision of purchasing my new home.

The first principle of economics I will be investigating to aid me in the decision to purchase a home is the “Principle 9: When the Government Prints Too Much Money” (Mankiw, 2007, p. 12). An individual could assume that when the government prints more money, increased wealth would happen; however, it creates an adversity throughout the economy. The next principle I would investigate would be “Principle 10: Society Faces a Short-Run Trade-off between Inflation and Unemployment” (Mankiw, 2007, p. 13). The paramount timing to purchase a new home is during high employment elevation; unfortunately in the economy of today the unemployment rate has sky rocketed along with inflation. Producing a difficulty for individuals to rely on his or her employment durability.

The second principle I would investigate to aid in the decision of purchasing a home would be “Principle 6: Market Are Usually a Good Way to Organize Economic Activity” (Mankiw, 2007, p. 9). This principle means an unseen force guides the prices and purchases of preferred products required by the public and guides the productions and costs of those specific...