Frank Principles Of Economics 7th Edition 2019 495337

Frank Principles Of Economics7th Edition 2019byrobert Frankread T

Read the following chapters of Principles of Economics in McGraw-Hill Connect: Ch. 1, “Thinking like an Economist” and Ch. 3, “Supply and Demand”. Respond to the following in a minimum of 175 words: Discuss whether people make poor decisions because they fail to compare relevant costs and benefits. Provide an example of a poor decision you made and a good decision you made, analyzing if you considered the relevant costs and benefits. Describe an example of behavior you have observed that could be interpreted as “smart for one but dumb for all”. Respond to at least two classmates' posts constructively and professionally.

Paper For Above instruction

The principles of economics highlight the importance of comparing costs and benefits when making decisions. People often make poor choices because they overlook or ignore relevant information, leading to suboptimal outcomes. This concept is rooted in the economic idea of rational decision-making, which assumes individuals weigh the marginal costs against the marginal benefits before acting. Nevertheless, cognitive biases, lack of information, or emotional influences can distort this process, resulting in mistakes.

For instance, I once bought a new smartphone impulsively because I was attracted by a promotional offer, without considering the actual utility or the financial cost involved. I did not compare the potential benefits, such as improved features, against the opportunity cost—what I could have done with that money or the inconvenience of changing devices. This was a poor decision because I did not analyze the relevant costs and benefits thoroughly. In contrast, I made a good decision when I opted to continue studying for an additional certification. I carefully weighed the costs of time and effort against the potential increase in my earning capacity and professional growth. By comparing these, I made a more informed and beneficial decision.

An example of “smart for one but dumb for all” behavior is individual vaccination decisions. A person may choose not to vaccinate to avoid perceived side effects, which benefits them personally by saving potential discomfort. However, if everyone adopts this stance, it undermines herd immunity, putting public health at risk. This behavior benefits the individual in the short term but is collectively harmful, illustrating the tension between personal and social rationality.

Understanding the relevance of these principles can help individuals and groups make better decisions aligned with their objectives while recognizing the broader societal impacts. Such awareness encourages more deliberate decision-making processes that incorporate thorough cost-benefit analysis, ultimately leading to better personal and societal outcomes.

References

• Frank, R. (2019). Principles of Economics (7th ed.). McGraw-Hill Education.
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