Got a tricky question? Receive an answer from students like you! Try us!

Principles of Economics - Research Paper Example

Only on StudentShare
Author : idooley
Research Paper
Finance & Accounting
Pages 4 (1004 words)


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…

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. ...
Download paper
Not exactly what you need?

Related Essays

A basic outline of economic considerations that come to play in construction management
According to the research findings economic theory, despite its crucial impact upon the ultimate success of construction projects and corporations, is often insufficiently understood by construction management professionals. Warren argues that this is due, at least in part, to an insufficient linkage between economic theory and the contexts of construction applications that such professionals hold as their primary disciplinary concern. After all, most construction professionals enter the engineering and building field because they want to design and construct physical structures, not in order…
10 pages (2510 words)
Principles of Finance
Cost refers to the worth of assets utilized in the implementation of the equipment, starting from transportation, installation and maintenance. The total cost of a project consists of cost of capital, assets, labor expenses, intermediate resources, staff salaries and production expenses among others. Costs can be in different forms, such as real, nominal, primary, secondary, associated expenses and project expenses among others (Horngren, 2008). Hence, while appraising the equipment and facilities manufactured by Danforth Limited and Donnalley Limited, one would have to compute as well as…
7 pages (1757 words)
‘Much of the competition between these oligopolistic firms is usually in terms of marketing of their particular brand’ (Sloman, pp. 197-198 2008), although the marketing techniques may differ considerably from one industry to another. There is a huge deal of interdependence between firms in an oligopoly. The abstract tells us that they have power in many ways in terms of regulating prices and agreements. The decisions made by the rivals will affect each firm. Firms, hence affecting their decisions recognize this interdependence (Sloman, pp. 197-198 2008). 2) Explain two reasons for your…
4 pages (1004 words)
Finance Principles
It can be explained as, if one of the asset in the portfolio is giving negative return, then it would not have a significant impact on the overall return of the portfolio because the other assets might be performing well and thus making up for the asset which is not performing well. Diversification helps an investor to have consistent return on its portfolio over a period of time. An investor who is risk-averse in nature would always strive to have a completely diversified portfolio in order to minimize risks associated with it. Quantitative measure of portfolio is possible with the advent of…
8 pages (2008 words)
Finance Principles
Stakeholders include all individual and institutions that are financially and non financial associated with the company i.e. from board of directors and top management to shareholders, creditors, suppliers, employees, society and the environment (Ross, Westerfield, & Jordan, 2008, p.7). Corporate governance policies are developed and implemented by mainly the board of directors and top management of companies. Executive directors play important on this business activity. Many executive directors of leading firms of both UK and USA have been criticized for major corporate failure of their…
6 pages (1506 words)
Taxation Principles and Concepts (Taxation)
A capital allowance refers to the amounts in cash that a business operating in the United Kingdom can deduct from the overall income tax on its profits or the corporate tax. The sources of these sums of money come from certain purchases as well as investments as outlined in the Capital Allowances Act of 2001 (Channer & Rogers 2007, p.xiv). A business or corporate organization can claim capital allowances on the costs of cars, vans and machines purchased for business use, or other assets in the business such as scaffolding, equipment, ladders, furniture, computers, and tools. In addition, a…
8 pages (2008 words)