Question

Hello,

I have an online discussion assignment due.
and I don't have an idea about the questions.

1. Analyze economic choices and trade-offs

2. Analyze economic models.

Would you help me with that? Typed answer is preferred.

Thank you very much in advance!
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D1: Should Abortion Be Leagal

Discussion Expectations

Respond to at least two other peer postings.  Be substantive and follow up on your comments and questions. Do you agree or disagree and why.  Do you have questions based on your peers' postings? Use references from readings, websites,  and course activities that support your position.  Be sure to properly cite your references.

Meets Learning Objectives 

1. Analyze economic choices and trade-offs

2. Analyze economic models

Answer 1

1. Economic choices and trade-offs

Most of us don't have so much money that we are in a position to buy everything we desire. We must put thought into every purchase and how it affects our bank account. We also must think about what type of satisfaction that purchase will give us. As a result, to get one thing that we like, we usually have to give up another thing that we also may like. Making decisions requires trading off one item against another.

In economics, the term trade-off is often expressed as an opportunity cost, which is the most preferred possible alternative. A trade-off involves a sacrifice that must be made to get a certain product or experience. A person gives up the opportunity to buy 'good B,' because they want to buy 'good A' instead. For a person going to a baseball game, their economic trade-off is the money and time spent at the ballpark, as compared to the alternative of watching the game at home and saving their money, plus the time spent driving to the ball game.

2. Economic models

An economic model is a hypothetical construct that embodies economic procedures using a set of variables in logical and/or quantitative correlations. It is a simplistic method using mathematical and other techniques created to show complicated processes. An economic model can have many constraints, which may change to generate different property.

Uses of Economic Models

There are five main reasons that economic models are used. These are:

1. To predict economic activities in which conclusions are drawn based on assumptions
2. To prescribe new economic guidelines that will change future economic behaviors
3. To provide logical defense to justify economic policies at three levels: national/political, organizational, and household
4. For planning and allocating resources and planning logistics and business leadership
5. To assist with trading and investment speculation

Classical Economic Model

The law of demand and the law of supply are represented in one very commonly used economic model: the classical model. The law of demand states, with all other factors remaining unchanged, the quantity of a product or service that is demanded will increase when the price has decreased. The law of supply states, with all other factors remaining unchanged, an increase in price will result in an increase in the quantity of the product or service that is supplied to the market.

The Production Possibility Frontier Model

Another important economic model is the production possibility frontier (PPF): a curve that depicts maximum productivity likelihood for two or more products, with a specific set of inputs, such as technology, labor, or capital. The main assumption of the PPF is that all inputs are utilized with utmost efficiency.