A New House Decision Essay

1840 WordsFeb 12, 20128 Pages
A New House - Decision XECO/212 October 9, 2011 A New House - Decision Buying a new home requires a significant amount of research, considerations, and evaluations before embarking on what will most likely be the largest choice that any person will make in his or her lives. The thought process must include a thorough review of all financial and economic criteria whether they are individual, national, or even global. The decision to buy a home depends more on the economy’s future than perhaps its current state, though both prove to play hugely major roles. The principals of economics, as laid out by Ukrainian-American Macroeconomist N. Gregory Manikow, play a key role in economic understanding. Manikow’s principals are based the decision making process, as the essence of the economy, and how people form those decisions. These principals, when followed in measure, can serve to increase profitability while managing individual needs. The massive decision to purchase a new home will not only require the understanding of a person’s own financial situation, but also how the economy can affect the situation both currently and in the future. Comparing marginal benefits with marginal costs in addition to weighing out advantages, disadvantages, and opportunity costs all play together in the game of economics. When searching for a new home there will be several key principles that remain constant during the entire process. The first such concept will be the subject of tradeoffs; in economics, a tradeoff refers to what a person is willing to give up in order to obtain something he or she may deem more valuable. In the decision to purchase a home the largest tradeoff will obviously be the amount of money that one is willing to part with to buy the home, the cost of something is what you give up in order to get it. Purchasing a new home will mean that a person

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