Principles of Economics - Research Paper Example

Only on StudentShare

Extract of sample
Principles of Economics

Based on this research economics is about scarcity and choice. It is assumed that all human beings are rational thinkers hence would always choose to consume products that would give them maximum satisfaction or utility. Mankiw argues that rational people ‘systematically and purposefully do the best to achieve objectives given available opportunity.’ Given a choice among alternatives and with scarce resources, one would evaluate the benefits and costs of consuming an extra unit of a product and would only take a decision only if marginal benefit is greater than marginal cost. In this case, to solve the alcohol abuse problem, one has to consider marginal benefits and marginal costs derived from consuming an extra unit of alcohol and since excessive drinking has more costs than benefits, one would refrain from alcohol. The opportunity cost foregone by choosing to abuse alcohol is too high compared to satisfaction derived; money spent on alcohol can do many other things such as feeding the family, education for children, and investments among others. Besides, the person may have health problems thus adding to the costs. By considering all these factors, a rational person would refrain from alcohol abuse. Heyne acknowledges the role played by incentives in directing behavior. For him, rational people usually respond to incentives or are induced to act by them. Assuming alcohol abusers are rational, imposing taxes on alcohol substances would eliminate the problem. ...Show more

Summary

The paper tells that an increase or decrease in price of the drugs therefore has little or no effect on the quantity demanded by an individual. The increase in price of the drugs thus affects all the sectors of healthcare industry such as patients and private insurers…
Author : idooley
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Principles of Economics"
with a personal 20% discount.
Grab the best paper

Related Essays

A basic outline of economic considerations that come to play in construction management
Throughout the report, an attempt will be made to define the economic concerns of construction and engineering management in such a way that proactive steps can be outlined for UK construction management stakeholders to successfully navigate the difficult economic environment of modern construction management.
10 pages (2500 words) Essay
Principles of Finance
For this comparison, it would be implicit that the equipments will be substituted at the completion of its economic life and that both companies would be capable of supplying the equipments on the similar terms for an indefinite period. Analysis and Discussion Cost Analysis The evaluation of the purchase of the equipment and packaging facilities for the Dynamo project should be made on the basis of cost-benefit examination to prepare most favorable progress plans.
7 pages (1750 words) Essay
Economics
The article above states that there are 6 major companies, which dominates the agricultural chemical market, therefore, this shows that there are a few firms between which shares a large proportion of the industry (Lipsey & Chrystal, pp. 176-177, 1999). In an oligopoly, the firms might produce a virtually identical product that in this case is the agricultural inputs such as the world’s seed, pesticides, and biotech industries.
4 pages (1000 words) Coursework
Finance Principles
The main purpose of diversification of portfolio is to reduce the overall risk associated with the portfolio without compromising much on the return. It is the motive of every investor to maximize return and minimize risk. The volatility or risk associated with a portfolio is minimized due to diversification because of the fact that not all the assets included in the portfolio move along the same direction.
8 pages (2000 words) Essay
Finance Principles
These two acts are Combined Code 1998 and Sarbanes-Oxley (SOX) Act 2002. Combined code was prepared by Hampel committee in 1998. Corporate governance refers to a set of standard policies and principles through which a company is governed. This is developed to follow how the company will be directed and controlled so that it can fulfil objectives and goals along with can add value to the company and it’s all of its stakeholders’ interest in long term.
6 pages (1500 words) Essay
Taxation Principles and Concepts (Taxation)
However, I am very glad to offer you some conclusive advice on your financial position as well as how to take a financial direction after starting a new business. The issue of capital allowance arises when a purchase or property is made either for business or for personal use.
8 pages (2000 words) Coursework
Accountability of public health service
It is the free provision of complete health care from the UK government to the general public that provides funding for its operations. The organisation is run by the Department of Health under the supervision of Secretary of State for Health.
4 pages (1000 words) Essay
H/w
The formula to calculate free cash flow is cash from operations minus capital expenditures. This concept is important because it gets managers to analyze what they are spending their money on and what changes can be made to those
1 pages (250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT