10 Principles of Economics – Final Paper
Principle #1: People Face Trade-Offs
This article released by the World Bank talks about education in the country of Colombia. According to this article only 37.2% of young Colombians continued their studies or training after high school in 2010. The government’s goal is that half of young Colombians continue their education after high school by 2014. Colombians with a bachelor’s degree earn about 3.5 times more than one with a high school certificate. Colombians face a trade off by continuing their education they can define the future of their nation. The Colombian government has their own government-funded system of financial aid for students. Colombians have to trade in time, money and effort in order to earn a better life and a more rewarding job. People Face trade-offs in many ways, one great example is in this article. Spring-cleaning, which is consider a pain by many but it can make a home feel like new. This article explains different ways to outsource some work without spending a lot of money. You could tag-team with someone, family, friend or neighbor that way you can get more done in less time. Seek out daily deals for cleaning services, many websites offer daily deals and coupons for cleaning services. Not only you have to do home cleaning but digital cleaning as well. Take advantage of your work’s technology office to help you with it for free.
Principle #2 The Cost of Something Is What You Give Up To Get It In this article Dan Primack introduces us to the memo written by Michael Dell in which he gives a detailed outline of Dell’s plans for the future. One of the big features is the increase in personnel to help extend the depth and breadth of the company. Focusing on investments in emerging countries and to expand aggressively to parts of Asia, South America, central and Eastern Europe and the Middle East. Also a simplified and faster costumer service, they plan to eliminate friction and complexity enabling more rapid response to costumer needs. Dell will make significant operating expense and capital expenditure investments to accelerate this effort. Dell is giving up time and money in order to provide a better service. This article by CBS’ Moneywatch talks about how even though the great recession its been over for almost 3 years, there are still Americans that have a struggle with the shifting economy. Some 45% of households earning between 50000 and 150000 per year spend all or more of their monthly earnings each month. Americans are concerned about losing their job and not finding another one. Many jobs that once allowed people without a college degree enter the middle class, are gone. Since 1980s, employment has become increasingly concentrated among the highest- and lowest-skilled jobs. This means even though a great recession is done, Americans still have to give up some time and money if they want to prosper.
Principle #3: Rational people Think At The Margin
In this article by Ben Mutzabaugh we encounter a fast-growing market in the world, airlines. This article mainly focuses on Frontier airlines, a low-cost airline based in Denver, CO. The problem that Frontier has is the fact that Southwest (who is Frontier’s main rival) and United Airlines, who is an airline leader, both have power over Frontier’s services. This is why Frontier Airlines decided to get rid of their service to and from Grand Rapids, MI. The company is quite profitable but they just...