...How People Make Economic Decisions Paper “The word economy comes from the Greek word oikonomos, which means, one who manages a household.”(2007, Chapter 1) I have been married for three years now and I never know before then how much time and energy it takes to run a house. Someone needs to make sure that the rent is paid on time, there is cash available incase of in emergency. After my wife and got mired we had to set down and talk about our finances and our notes. For example, my wife had purchased new cars before we got married. If she would to lose her job I would be the person responsible on making the payments. A lot of decisions needed to be made in order for our household economy would be able to function. The four principles of individual decision-making are. 1. People Face Trade-offs – This means that there is no such thing is getting anything for free. In order to get something that we like, we typically have to give up something in return. When fast food restaurant offer a promotion for a free breakfast between the hours of 6 am and 10 am what we give up for that five-dollar breakfast is waking up earlier for work, waiting in line at the restaurant and if there are other 100 people that think the same we will be waiting for a long time. 2. The cost of something is what you give up to get - “Because people face trade-offs, making decisions requires comparing the cost and benefits of alternative courses of action.” (2007, Chapter 1) For example, if a collage...
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...How People Make Economic Decisions Paper How people make economic decisions regarding their buying’s of good or services at the market are ruled by three basic principles as follows: People are rational as they make the best decision that will benefit each individual on their purchases or selling’s. The people evaluate constantly the benefits versus the cost of the goods or services. Example of this might be: An imaginary famous nail enamel branch was priced originally as .39 cents as the sale manager established. The famous branch was heading to bankrupt then did a marketing study of the market where they establish that the price the people where most likely to pay was .69 cents; this show us that the people associates price with quality. People respond to economic incentives, The basic idea behind the incentive tells that people tend to move towards a decision that they didn’t considered before if at the time they will receive any monetary incentive for it. As an example the author show us how Estonia woman start having babies after the government decide to provide incentive for each child birth to the mother for a couple of months with the goal of rise the born and death rate in this country that still critical. Finally the Optima decision is made at the margin where the benefits are maximize, where the seller obtain the maximum return possible for what the buyers are willing to pay for a good or service. The best example to show the application of the marginal benefits...
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...system of financial reporting the move from historical cost to fair value | |accounting has created numerous debates surrounding the trade-offs of the concepts of relevance and | |reliability. This article contributes to the debate by critically reviewing the current developments of | |these trade-offs to determine whether current financial reporting guidelines are appropriate to deal with | |the difficulties and uncertainties of financial reporting. The article found that the proposals of the joint| |framework discussion paper goes a long way in resolving the issues around the trade-offs of relevance and | |reliability. Changing the concept of reliability to faithful representation will not negatively impact on | |resolving the issues. Some recommendations are made to enhance the trade-off concepts. | Keywords: Faithful representation Financial reporting Framework Discussion Paper Qualitative characteristics Relevance Reliability 1. Introduction The current international move from historical cost to fair value accounting has...
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... | | |ECO/212 (3 Credits) Version 6 | | |Principles of Economics | | |03/01/2012 - 03/29/2012 | | |PUERTO RICO CAMPUS | Copyright © 2009, 2008, 2006, 2004 by University of Phoenix. All rights reserved. Course Description This course introduces the fundamental theories of microeconomics and macroeconomics. The economic principles studied in this course apply to everyday life as students research an industry, debate issues with trade agreements, discuss the effects of a shift in labor supply and demand, and discuss the strengths and weaknesses of the Consumer Price Index calculation. In particular, students research an industry affected by the economy and perform an economic analysis of the chosen industry. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document...
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...How People Make Economic Decisions People select different alternatives in order to achieve their objectives. They choose one way or another because of scarce resources. This means that individuals may have lots of wants or needs, but they are limited by the available resources; be them money, time or several other. In this paper I will list three economic ideas associated to individual choices, present two cases of decision-making in which I shall compare the marginal benefits and the marginal costs related with the decision, show what incentives could guide to take a different path, and explain how the principles of economics affect decision-making, interaction, and the gear of the economy as an overall. Individual Decisions R. Glenn Hubbard and Anthony Patrick O’Brien (2010) teaches that “economics is the study of the choices consumers, business managers, and government officials make to attain their goals, given their scarce resources” (pg.4, para 3). Previous citation can translate as: I have only an hour time and I need to choose if to finish my economics paper, or watch my favorite show. Another individual decision example may be when a business has to decide if to produce 5,000 more electric batteries for cars, in the middle of the year, or to stay with the 50,000 production number that was the first decision in the beginning of the year. There are three main economic ideas related to individual choices: “people are rational, people respond to incentives, and optimal...
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...How People Make Economic Decisions Paper Gary Brockington ECO/212 7-25-2010 Anil Marthur How People Make Economic Decisions Paper People make economic decisions every day throughout their lives. In this paper I will describe the three economic principles of individual decision-making. I will provide an example of a decision which I took part in and compared the marginal benefits against the marginal costs. I will also give those marginal benefits and costs acquainted with that decision. I will tell which incentives could have led me into making a different decision. Last I will explain how the principles of economics affect people’s decisions, interaction, and how the economy works as a whole. There are three economic ideas concerning people who have to make economic decisions. One is people are rational. This means that an individual always weighs the benefits and costs, and make their decisions only if the benefits outweighs the costs (Hubbard, O’Brian, 2010). The second economic idea is people always respond to economic incentives. This simply means that people respond to incentives from variety of motives (Hubbard, O’Brian, 2010). The third idea is that optimal decisions are made at the margin. This means that when he or she is making a decision in which they are going to hit the jackpot or lose everything. There have been many cases in which I had to look at the marginal costs and the marginal benefits. The biggest decision I had to make was whether I was...
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...Investment Decision Selection Paper To Buy This material Click below link http://www.uoptutors.com/FIN-403/FIN-403-Week-2-Learning-Team-Assignment-Investment-Decision-Selection-Paper FIN 403 Week 2 Learning Team Assignment Investment Decision Selection Paper Select one of the following scenarios, used in future Learning Team assignments: A manufacturing organization considering expansion to India or Brazil A service organization considering expansion to Thailand or Ghana A nonprofit organization considering expansion to China or Hungary Obtain faculty approval of your scenario prior to beginning the assignment. Prepare a 1,750- to 2,450-word paper in which you relate the international flow of goods, services, and capital to the balance of payments and domestic economic behavior. Address the following: Analyzetrends of balance of payments accounts, including the current and capital accounts, and the overall balance of payments over a 3-5 year period on a quarterly basis for the countries in your scenario. Relatevarious balance of payments accounts to fluctuations of the exchange rates of the proposed countries over the time period. Describecurrent economic conditions of the countries. Use the Internet to research balance of payments data. Use the following resources to research data related to the international flow of goods, services, and capital, and international economic and political conditions: U.S. Department of Commerce Bureau of Economic Analysis Economic Research...
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...used for making sound financial decisions about an organization. They provide information of past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to derive reports for each accounting process yet they differ in some ways. Financial accounting primarily provides external reports for external users such as stock holders, creditors, regulating authority and others. (Garrison, Noreen, & Brewer, 2010) On the other hand Managerial accounting is concern with providing information that deals with the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002) Managerial Accounting addresses those aspects that relates to an individual organization return on investments (ROI). (Albrecht, Stice, Stice, & Skousen, 2002) A company’s profitability depends on periodic attention to its assets turnover and profit margin. This process is designed to support the de... ... middle of paper ... ...egulator or auditor is going to insist that a company implement a good management accounting system. (Garrison, Noreen, & Brewer, 2010) The choice of how to collect and utilize information in a company is strictly management’s decision and is a part of the company’s competitive strategy. Financial and Managerial accounting are used for making sound financial decisions about an organization. They provide...
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...How People Make Economic Decisions Francisca A. Castellanos ECO212 January 18, 2011 Evanthis (Pete) Mavrokordatos How People Make Economic Decisions Decisions, decisions, decisions…Decisions are the worst, and yet we must make them each and every day. The ten principles of economics explains how people make decisions, how people interact, and how the economy as a whole works. Economics is a behavioral science, which studies how societies manage their scarce resources (Hubbard-O’Brien, Glossary). Societies have different economic interactions that are affected by the type of economic system present. The main attributes of each system are as follows. In a market economy decisions of households and firms interacting in markets allocate economic resources (Glossary). In a centrally-planned economy the government decides how economic resources will be allocated (Glossary) and in a mixed economy economic decisions result from the interaction of buyers and sellers in markets but the government plays a significant role in the allocation of resources (Glossary). My small society (household) depends on me to allocate our scarce resources (monetarily), taking into account our abilities, efforts, and desires. My husband makes decisions based on our emotional needs as a family, yet both parts are equally important. How People Make Decisions Principle One: People face trade-offs. Making decisions requires trading off one item for another. I face this dilemma all the time because...
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...Economic Project Paper Abstract Firms experiencing or anticipating substantial workforce expansion face increasing pressure to accurately project the costs associated with human asset investments and potential future layoff requirements. With that in mind, the decision whether to take on temporary workers in lieu of hiring permanent employees is a decision that involves significant risk. However, real options theory offers managers the ability to consider irreversibility and to make workforce investment decisions under conditions of minimum uncertainty and maximum flexibility. We present real options theory within our organization analyzing both sides temporary and permanent hiring to yield maximum profit considering implicit and explicit factors and economic risks. Introduction The cost of production, inventory and sells means money expenses incurred by a firm on production of a commodity but in economics sum of explicit costs and implicit costs constitutes total cost of production of a commodity. We have seen that human are satisfied by way of goods and services which are sold by firms, respectfully. For selling a commodity, a firm requires factor inputs and non factor inputs. The money spent by the firm on both factor inputs and non factor inputs is called money cost. In economics money expenses alone do not provide a solid result in increased profits. As we examine the cost and benefit of selling our paper products in relation to increase stuff by way of temporary or permanent...
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...American Economic Review: Papers & Proceedings 2009, 99:2, 448–453 http://www.aeaweb.org/articles.php?doi=10.1257/aer.99.2.448 Beliefs and disagreement in OrganizatiOns † Authority versus Persuasion By Eric Van den Steen* Managers often face a choice between authority and persuasion. In particular, since a firm’s formal and relational contracts and its culture and norms are quite rigid in the short term, a manager who needs to prevent an employee from undertaking the wrong action has the choice between either trying to persuade this employee or relying on interpersonal authority.1 Herbert Simon (1947) noted, for example, that “when … disagreement is not resolved by discussion, persuasion, or other means of conviction, then it must be decided by the authority of one or the other participant” and that “in actual practice … authority is liberally admixed with suggestion and persuasion.” Obviously, in choosing between persuasion and authority, the manager makes a cost-benefit trade-off. This paper studies that trade-off, focusing in particular on agency conflicts that originate in open disagreement, in the sense of differing priors. To that purpose, I will study a setting in which a principal and an agent are involved in a project. The project’s outcome depends both on decisions and on implementation effort by the agent, i.e., on effort to execute the decisions. A key issue is that the principal and agent may openly disagree on which decisions are most likely to † Discussants:...
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...Organizing Your Writing Sekou Konate Walden University Abstract Scholars discussed the issues of leadership, ethics, power and decision making. A review of the literature related to those topics to clearly make management moving and adapted to the context of organizational change by stating the theme to link the topic as a block. Title of the Paper in Full Goes Here Many authors described the change in their scholar works. This literature discussed the ethical, leadership, power and decision making regarding the organizational change. The purpose of my essay will be to demonstrate my ability to organize these different point of view in literature, synthesize different categories and then formulate the common themes among these articles The proposed solution for these different authors converged to make a pertinent social change regarding the leadership, the ethics, power, and the decision making in organizations. Those four topics related to management will be developed in different viewpoints in the same order as enumerated above. Leadership The author described the reflective change in individuals leading a societal project. Smith laid out a framework for leader undergoing an organization change. The author described the executive and management behavior regarding the implementation of principals to become a leader. According to Smith (2001), one of the main causes of successful organization’s failure is the lack of reflection. The author went on to suggest...
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...Environmental Factors Paper University of Phoenix Christy Holley Environmental Factors for PepsiCo PepsiCo, one of the leading beverage and snack companies in the United States and abroad, is affected by both global and domestic environmental factors. These factors, along with changes in technology, all impact and shape the organization and affect marketing decisions. The article “PepsiCo Pops for China,” written by Ruthie Ackerman and published by Forbes.com, reviews Pepsi’s decision to invest billions into the Chinese market audience. This paper will review the article, identify environmental factors that shape the organization and impact marketing decisions, and discuss how technology plays a role in those decisions. Alternatives to Ackerman’s view of social responsibility to the company’s marketing decisions and activities will be analyzed, along with explanations of how ethical issues can make an impact. The accuracy of the article’s forecasts will be reviewed and further supportive references to conclusions made will be gathered, if necessary. Global and Domestic Factors Several macro-environmental factors shape the PepsiCo Corporation and impact marketing decisions. Demographics, economic climate, ecological and political issues, technology, and cultural concerns all affect where the company is headed desires and the decisions the company makes. Each issue affects the company differently, but when combined together, the environmental factors can wreak havoc...
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...Terms Comparison Paper HCS 552 May 25, 2015 Terms Comparison Paper According to the American Economic Association (2011) economics studies how people make choices when they want to utilize resources. This fundamental process links economics and health care together because health care professionals use economic principles in their everyday professional behaviors. Health care organizations do their best to use the same concept of economics when they decided how to allocate resources and plan how to use them because it is essential to their survival. Therefore, health care and economics are connected in the sense of sharing the same terms such as resources, quality, and cost. The objective of this paper is to analyze how the terms of cost, quality and resources are similar and yet dissimilar in healthcare and economics. Resource The term resource is defined as the product, asset, or other service with limited availability utilized to generate commodities and services that convene to human requirements and desires (Gretzen, 2007). As a result of these resources can be restricted, many economists, decision makers, and health care providers are forced to find ways to efficiently allocate resources within their organization in order to maximize cost effectiveness. Economic resources are also found to have a substantial and considerable effect on the utilization of medical care (Chung, 2006). Healthcare services are provided to consumers by the utilization of resources...
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...NBER WORKING PAPER SERIES THE DYNAMICS OF EDUCATIONAL ATTAINMENT FOR BLACKS, HISPANICS, AND WHITES Stephen V. Cameron James J. Heckman Working Paper 7249 http://www.nber.org/papers/w7249 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 July 1999 We thank Stephanie Aaronson, Joseph Altonji, Shubaum Chauduri, Terri Devine, Tom Kane, and Christopher Taber for valuable comments. We thank Marvin Kosters for valuable comments and for making this paper possible. The first draft of this paper was presented at an NBER conference on higher education at Cambridge, MA in April 1992. It was also presented at a Public Economics workshop at the University of Chicago (May 1992), sponsored by J. Hotz, at the Institute of Research on Poverty (Wisconsin), June 1997, and at Cornell University, April 1997. This work was supported by the American Bar Foundation and by NSF-SBR-93-21-048, NSF 97-09-893, and by NICHD:R01-HD32058-01A1; NICHD:R01-34598-03; NIH:R01-HD34958-01; NIH:R01-HD32058-03, and by grants from the Mellon Foundation and the Spencer Foundations. The views expressed in this paper do not necessarily reflect those of the National Bureau of Economic Research. © 1999 by Stephen V. Cameron and James J. Heckman. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Dynamics of Educational Attainment for Blacks...
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