ConceptApplication of Concept from Personal ExperienceReference to Concept in Reading Economic Perspective
Economic Perspective involves three elements
1.Scarcity and choice
Economic Perspective is the understanding of why people choose one want over another
When I graduated with my under-graduate degree I had to make the choice to either move back to my hometown where my family and friends were or take employment in a different state. I chose to move back to my hometown because I figured I would have been able to find employment in my hometown. In retrospect, I had much more potential to make more money if I would have chosen to take the position the other state. “ Individuals look for and pursue opportunities to increase their utility – that is, pleasure, happiness, or satisfaction” (McConnell & Brue, 2004, p.2).
“Self-interest behavior is simply behavior that enables a person to achieve personal satisfaction, however it may be derived” (McConnell & Brue, 2004, p.3). Marginal Analysis
Marginal Analysis involves comparing the extra benefits of a choice with that of the extra cost of that same choice
Recently, I had to choose between getting a new mobile device which could link to my Microsoft Outlook and had a full key pad for $300 or a device for $150 which did not have a full key pad or the ability to sync with my Outlook. I decided the extra cost of a device which would assist with work and school worth the benefit compared to the cheaper less advanced mobile device.“In a world of scarcity, the decision to obtain the marginal benefit associated with some specific option always includes the marginal cost of forgoing something else” (McConnell & Brue, 2004, p.3). Economic Systems
There are two general types of economic systems: the market system and the command system.
Market System = Capitalism
Private ownership of resources and the use of markets and...