Economics

How people make economic decisions

Stacia Lopez

ECO/212

01/24/2011

Jeff Leeson

How people make economic decisions

Each person makes their own decisions based on what they think is right for them at that time and moment. When a problem presents itself the first thing that society does is try to cover it with a band aid then when the problem comes back it is even bigger than it was before, this is because we do not want to take the time to weigh the pros and cons of the problem to make the best decision. How the economy is today with all the immigrants that we have here fighting for their jobs as well as the American people fighting for their jobs or even all of people trying to find a job is getting hard but not as hard as it was. We are still in the recession and yet the unemployment rate for the state of Colorado is still at an 8.6% high and the national unemployment is at 9.8% this was updated in November 2010, yet so many people are still looking for a job that gives them the same income as they had before. As a society we do respond to economical incentives, but there are some of those citizens that will not receive those incentives because of the debt they have and so the incentive is not received so that it can go back into the economy.

The one decision that I made and had to think long about was when I wanted to go from a salaried manager to a crew member. I came to make this decision because my school work was suffering and I was becoming more and more sick and unable to control my type 2 diabetes and blood pressure. I was slowly killing myself by not taking these things seriously. The marginal benefit to cutting back pay and hours was that I would be able to focus on both school and my health issues, and the marginal cost was that I was unable to buy unnecessary items that I was buying at the time. When I handed in my demotion letter the company decided that is would be best to let me go. Since this has happened I have now transferred to the...