Question

Using the following ranked desires of John: (1) Sleeping (2) Reading (3) Playing baseball, explain how choices imply tradeoffs, subjective value, subjective cost, and purposeful action.

Answer 1

John has four desires

1. Sleeping
2. Reading
3. Playing baseball.

Choices involve tradeoff, subjective value, subjective cost and purposeful action.

When john chooses between his desires, it will involve tradeoff, subjective value and purposeful action.

Tradeoff: it is a situation where you balance two opposing situations or qualities. It is a situation in which you have to accept something bad in order to accept something good.

Subjective value: Value of a good is not determined by any inherent property of the good, nor by the amount of labor necessary to produce the good but instead value is determined by the importance an individual places on a good for the achievement of his desired ends. Subjective theory of value states that an object’s value is not inherent and is instead worth more to different people based on how much they desire or need the object.

Subjective cost: subjective theory of cost states that the cost of an object is the real cost borne by the individual (including toils) who wishes to acquire a particular object.

Purposeful action: when an individual takes steps towards achieving a desired aim, these steps are examples of purposive action. When an action has a point to it and is useful, it is an example of purposive action.

John will face a tradeoff between sleeping, reading and playing baseball.

If john chooses sleeping over reading and playing baseball there will be a tradeoff and he will have to forego the opportunity cost of reading and playing baseball. He will also have to forego the subjective value he attaches to reading and playing baseball. He will have to bear the subjective cost of sleeping. His purposive action must be sleeping.

If John chooses reading over sleeping and playing baseball, he will have to forego the opportunity cost of sleeping and playing baseball. He will also have to forego the subjective value he attaches to playing baseball and sleeping. He will have to bear the subjective cost of reading. His purposive action must be reading.

If John chooses playing baseball over reading and sleeping he will have to forego the opportunity cost of reading and sleeping. He will also have to forego the subjective value he attaches to reading and playing baseball. His purposive action must be playing baseball.