Question

For this assignment, write a post about the economic choices you make in a day. Perhaps you have a job, or you visit a restaurant. Maybe you visit your local bank or watch a news program about the stock market. Include at least three examples and explain briefly how each relates to economics.

Answer 1

Ans.
1. To commute by public transport or personal car, this decision is taken by comparing the marginal benefit each will give in terms of comfort and travelling time with the marginal cost of using that transport which will be ticket in case of public transport and cost of gasoline in case of personal car. So, the one with marginal revenue at least equal to marginal cost is selected for commuting.

2. To get further education or start a job, this decision is made by comparing the benefits of the education by the opportunity cost of forgoing the job in that time period. It opportunity cost is higher than the benefits then we drop the idea to get more education.

3. Whether to order an extra plate of fries or not at the restaurant, this decision is based on comparing the marginal utility from the extra fries to the price of that extra plate of fries. If price is more than the utility from those fries then no more fries are ordered.

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