How People Make Economic Decisions Essay

529 WordsJan 29, 20123 Pages
How People Make Economic Decisions In today’s ever changing society, when people make decisions more often than not there are risks associated with those decisions. Because of these risks, making decisions is often a difficult thing to do. During the decision making process people should keep in mind four basic principles. People should never risk more than they can afford to give, people should never risk more than they have and people should never risk more than they can get in return. Moreover, it is important that individuals take confidence in following their intuition (Principles of Decision Making). An example of a marginal benefit in comparison to marginal costs is gasoline. On a regular basis people make large purchases of gasoline for their vehicles daily. Gasoline is a necessity in our everyday lives. People depend on gasoline to fuel their vehicles so that they can drive themselves to work as well as several other places people need to be because of their very busy life styles. As individuals people look for the best price possible when purchasing gasoline. Paying a higher cost for gas one place is not the best economic decision one can make when gas is less expensive elsewhere. Economically, if we shop around for the best possible gas prices, we save money in the long run. In today’s difficult economic times, consumers typically search for the best prices possible. Most people in society today refrain from spending money frivolously because prices on many necessary daily products continue to increase such as grocery and clothing items. It is important that people compare prices and make good decisions when making purchases in order to maintain a good economic balance. The principals of economics affect decision making of the economy as a whole through each and every individual. Most people in society today make
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