Economics

Economics Decisions

Kim Ellis

ECO/212

March 2, 2011

Edward Hastings

Economics Decisions

Decision making is based on a choice one makes, whether good or bad. Sometimes when making a choice it can be difficult. It is said there are four basic principles of decision making which are:

1. Never risk more than you can afford to give.

2. Never risk more than you have.

3. Never risk more than you can get in return.

4. Follow your intuition.

These guidelines will lead to making good decisions.

Currently, my marginal benefit of attending school is in the future I will gain lucrative pay on my job. I will have a higher degree than the average person who has not attended college, my pay rate should increase, and I will feel so overjoyed knowing I accomplished a big goal in my life. The marginal cost of attending school is the challenge of going to school, working and raising three children as being a single parent. It is very tough, I have completed 2 years now I have 2 more to go! My decision was hard, but no discipline brings joy immediately, but later it comes. So I know my harvest is coming!

There are a few incentives that could have led me to make a difference decision. Maybe if my job would have offered me more money without attending school it would have led me not to go back; however, that surely was not the case. Student loans would not have been a factor as well. It would have been much easier to do it that way. If my job would have given me a good raise, I probably would not have gone back to school either. I noticed some employees at my job were being promoted after getting their degrees so that was one of the reasons why that led me to go back.

Principles of economics relate to decision making in many ways. The principles of economics effect consumers when making purchases, whether they are aware or not. As a consumer, I am careful when making certain purchases. I need to decide when purchasing a car, shall I buy...