Principles of Economics - Essay Example

Only on StudentShare

Extract of sample
Principles of Economics

Practically, it is very hard to model actions since there are so many distinct variables. The problem of alcohol abuse is not easily overcome because alcohol is highly addictive. In this case, if the alcohol abuser is an economist, he or she will consider many things that he or she would use to help him or her overcome the situation. They will look at the opportunity cost whereby they will consider buying those goods that are best for their health other than alcohol (Mantzavinos, 2001). Additionally, they will use cost benefit analysis by viewing the benefits accrued from stopping the habit of alcohol consumption which in this case out weight the disadvantages for example, wastage of money in purchasing alcohol (O'sullivan et al, 2011). More so, they will consider rational behavior by assuming which actions are necessary when they stop consuming alcohol. Lastly, an economist would look at the market forces of demand and supply of alcohol in that they will analyze the level at which alcohol is supplied to the market and the price that alcohol come with. When the supply is not sufficient, they would prefer to stop drinking alcohol rather than continuing with the habit of looking for a commodity that is scarce and costly. More so, they will consider the level at which alcohol is demanded; therefore, they will analyze the possible outcomes of many people drinking alcohol. ...
Download paper

Summary

Principles of economics Your name Institution Principles of economics 1. Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis…
Author : hdurgan

Related Essays

Competitive markets, monopolies, oligopolies as types of markets structures
It is evidently clear from the discussion that competitive markets are characterized by unlimited number of buyers and sellers, all trading on the same or similar commodity in a manner that the prices of the commodity are largely determined by the market forces. Therefore, a single individual or a small fraction of the buyers or sellers has little or no impact upon the price. Once the prevailing market forces set the price, buyers or sellers have no option but to go with the offered prices. Monopoly type of market structure refers to a market whereby there is little or no competition on the…
5 pages (1255 words) Essay
Demand & Supply Analysis and Choice of Economic System
This essay discusses that a free market economy is a market system where transactions between buyers and sellers are determined only by mutual consent. This excludes that one party gets the deal by duress or deception; it also excludes the intervention of a third party – like government – to force or prevent the market. A free market limits government intervention in the application property rights, contract enforcement and verification of consent. The market economy means an economic system where decisions of production, exchange and allocation of goods and services is mainly determined…
6 pages (1506 words) Essay
economics
Taking into this account, how might my personal behavior patterns show a different type of decision process? I was at a fast food place once grabbing a burger to eat. Inevitably, “upselling” at the end of the transaction occurs where they offer fries and a drink. I almost instinctivey said “Yes”, then began to do marginal analysis. I would save money, but how much? Looking at the menu, I found that the a la carte cost would be thirty cents more. I didn't really want fries and a drink, I would only have purchased it out of an irrational desire not to miss a deal even when the deal is…
2 pages (502 words) Essay
Research
It comes under the category of social sciences which deal with the costs, profits, efficiency and other related concepts. Along with their application in business and services sectors, the public sectors of the country such as medical and healthcare services also make use of economics in their management and decision making (Kitty & Mack, 1995). Significance in Medical and Healthcare The recent research studies indicate that the ideas of theoretical and practical applications have contributed greatly to the medical and health sector. This great deal of contribution can be initially summed up…
2 pages (502 words) Research Paper
Politics and Economics
Man is always changing – from his physical traits to his values and cultures. He changes even his way of life in order to cope with his ever changing environment. Because of the changes in his environment, economic resources have become scarce. This is the main reason for us to economize (McConnell & Brue, 2005). We need to make economic choices every day of our life – from choosing our food to eat, deciding what and where to buy our clothes and how much fuel should be filled in our car. And in every decision that we make, we has to forgo an alternative and incur a cost. In our decision…
2 pages (502 words) Research Paper
Principles of Economics
Thus, the price of goods to be sold to them shall be cheaper. Conversely speaking, tourists are less likely to question and be discouraged by imposition of higher prices of goods since they are just visiting the college town. Thus, local residents shall be offered goods and services at lower prices as compared to visitors’ prices of similar goods. Further, locals should be the only ones aware of the pricing difference. They come very often and I am able to make relationships with them brings more revenue to the business. With my price discrimination strategy, I would not only help with the…
4 pages (1004 words) Assignment
How does the study of microeconomics differ from that of macroeconomics?
These are primarily individual households and firms. Issues under study in microeconomics include, but are not limited to, demand & supply, output of individual businesses, prices of goods and services etc. On the other hand, Macroeconomics deals with issues of the aggregates, i.e. economies, such as national income, inflation, output etc. A government, hence, becomes an important operator within the focus of macroeconomics since it sets policies which regulate the matters of the economy as a whole. Although macro and microeconomics tend to study different aspects, as highlighted above; but…
2 pages (502 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!