University of Phoenix
Economic Decicions Paper
October 8, 2010
When making decisions one needs to remember that with every decision made there are dire risk associated with each decision made. Because of these risks, making decisions is often very difficult. There are four principles of individual decision making. The first principle is never risk more than you can afford. For example if your single living alone and you only make enough to pay a certain amount of rent, why go apply for an apartment that is twice the amount you can afford. The second principle never risk more than you have if one has a limited amount of resources such as; money, food , water, shelter then one can’t afford to gamble on these resources not knowing if they can replace the resource. The third principle never risk more than you more than you can get in return. If applying for a job that you will benefit from then take the risk, if the job you’re applying for isn’t worth leaving your old job for than don’t take the risk. The last principle follow your intuition. If your first mind tells you do something then do it, don’t steer the other way.
Well in my experience when switching from an old job to a new one I have compared the marginal benefits and the marginal cost to switch to a new job. When seeking new employment I had to keep in mind the pay I was looking for, the other benefits such as; health care cost how much of a difference will it be for me to switch from my old health provider, to my new health care provider. How much will I be charged for medical, dental, and vision. I also have to keep in mind that I am a student, the new job I am applying for do they have tuition reimbursement, do they have any internships available, are they fine with their employees going to School. So the four principles of decision making come into play in everyday life.
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