Principles Of Economics Essay

1861 words - 7 pages

Buying a new home can either be an exciting experience in someones life, or can be a major heache with serious consequences. I was fortunate enough to get a house the a VA loan, and the process was somewhat more simple, because I did not have to do the majority of tasks by myself. I advise all of my friends and family, or whomever wants to purchase a home to consider many factors before making that decsions. Principles of economics plays a vital role in the decision making process when wanting to purchase a home. At the time, when I bought my house I didn’t know this but now since I am more knowledgeable on the economical principles, I realized I was applying all these steps unintentionally. Overall buying my home, was a major decision, and I know realize the consequences if not considering factors such as the economy, marginal cost and benfits, or even the right timeing of the supply and demand.
Principles of Economics
The principles of economics are what consumers use on a regular basis when dealing with trade, cost, products and services. This relates to my purchase decision when I bought my house because every principle neeed to be considered. Here is how for example considering people face trade offs. This principle is based on giving up something else to get one thing. In this particular case, I sold one of my vehicles to help me make the down payment on my home. This to me was a sacrifice.
Another principle that applied to me was the cost of something is what you give up to get it. I felt that buy selling my vehicle was a daring sacrifice, but I really wanted a home so, I sold my vehicle so my family and I could have more space and better living conditions. Then last but not least is the principle of people responding to incentives. Their where a lot of incentives in buying a home. For example I was eligble for the 1st time homebuyers credit, positive impact to credit report, and a more spacious home. According to the principles of ecomics incentives are what attract consumers, it increases buying abilty, because as consumers pay out getting a incentive in return can be very beneficial. In essence all principles played a role, but out of the ten these where the ones I felt related more with my decision in purchasing a home for the first time. Careful consideration, considering the economy as a hold and making sure that it was a safe housing market at that particular time.
Marginal benefits and costs
In purchasing something as essential as a home, marginal cost and benefits must be considered. In my purchasing my home, for the first time marginal cost is what I looked into before making any over the top decisions. According to Investopedia (2011) website many cosumers are to consider marginal cost before making any major purchasing decisions. This can be very beneficial in making the right decision. Many consumers before purchasing any major item such as a vehicle, land, properties marginal cost are always considered first. In...

Find Another Essay On Principles of Economics

Stigin’ It To The Man Essay

984 words - 4 pages George Stigler (1911-1991) was a neoclassic economist and an important figure in the development of many of our currently used economic principles. Stigler taught at the University of Chicago, where he worked closely with Milton Freidman. George Stigler was said to be quite brilliant in his field and yet, he kept a confident wit about himself that was said to help his students enjoy and understand economics. (Sowell) Comparatively, Stigler was

Importance Natural Resource Economics Essay

1702 words - 7 pages sustainable method of managing these resources. This management ensures that natural resources are available even to the future generations. Natural resource economics unlike other faces of economic theory, places much emphasis on externalities and the value of evaluation of natural resources in the determination of public policy relating to natural resources and environmental issues. It also aims at applying the principles of economics to

The Worldly Philosophers

1047 words - 4 pages markets advance in analyzing the comparative advantage concept since modern economy and its systems have different aspects that include advanced capitalism that has different effect from what they had earlier on. Works Cited Barron, John and Lynch Gerald. Economics. Boston: Richard D. Irwin Inc, 1989. Print Frank, Robert and Bernanke, Ben. Principles of Microeconomics. New York: McGraw-Hill/Irwin, 2001. Print. HeilBroner, Robert. The Worldly Philosophers: The lives, Times and Ideas of The Great Economic Thinkers. 7th ed. New York: Touchstone, 1999. Print. Riesman, George. Capitalism: A treatise on economics. New York: TJS Books, 1996. Print.


1719 words - 7 pages organized. That the kind of organization we have today has evolved gradually doesn't t make the principles behind it any less important. It evolved through history to the current arrangement, and is still changing and evolving. Social fabric is always likely to be changing. Many of the principles behind the current organization depend on economics and include many ideas.Principles of economics include: Private property- we can own land, houses, tools

Artticle Analysis Paper

1172 words - 5 pages PAGE PAGE 1 Article Analysis PaperRunning head: ARTICLE ANALYSIS PAPERArticle Analysis PaperSidney JonesUniversity of PhoenixECO Principles of MicroeconomicsInstructor: Dr. Christina SeslerNovember 30, 2009In the world of Microeconomics, key terms like economics, law of supply , as well law of demand will be used to analysis a thorough understanding of what the terms are , along with discussing the principles of microeconomics with accuracies

The Economics of Information

1379 words - 6 pages Various Aspects of Economics of Information 3.1 Economics of information in Education According to Farid (2007), economics of information is based on the concept that quality information is a scarce and valuable resource. The production and dissemination of information in education constitute two major economic activities, with associated costs and benefits. The value of information depends on its degree of accuracy, completeness

The salient features of Islamic economics and contrast them with those of conventional economics

783 words - 3 pages worship, on public services, on educational institutions, etc. Waqf have been an active partner to Muslim society till today in addressing issues of general welfare and security and in assisting society in taking care of the needy.In conclusion Islamic economic system is based on principles on holy Quran and Sunnah of prophet. Islamic economics guarantee the true welfare of all people, regardless of their race, age, sex, wealth or religion. It

Economics Research Paper

1559 words - 6 pages Social studies is a huge part of the elementary curriculum. Without social studies, elementary students would have a huge gap in their knowledge content. Economics is responsible for providing a large amount of information to students. For third graders, the North Carolina Department of Public Instruction places economics under goal five. Goal five divides communities and the basic economic principles into seven objectives. The first

Managerial Economics & Decision Making Process

1590 words - 6 pages project of the organization.ReferencesAutomotive. (2009). Retrieved February 3, 2009, from, W. J. & Blinder, A. S. (2005). Economics: Principles and Policy (10th ed.). Thomson South-Western.McConnell, C. R. & Brue, S. L. (2004). Economics: Principles, Problems, and Policies McGraw-Hill Professional.Wilkinson, N. (2005). Managerial Economics: A Problem-solving Approach. Cambridge University Press.

A Professional Literature Review of Incorporating Music Into The Economics Classroom: A Comparison of Two Teaching Methods” By: Jane Aw Yang Huey, Mara University Malaysia

524 words - 2 pages "Incorporating Music Into The Economics Classroom: A Comparison of Two Teaching Methods"Teaching can be done in many different ways, but this article particularly sought out the practice of learning by music. In a Principles of Economics class, some office management students were taught by the use of music lyrics. A study was done, one class taught with the inclusion of music lyrics and the other taught by the typical "chalk and board" practice

British Politics: Thatcherism and Reaganomics

1932 words - 8 pages notion is associated with the economic theory of monetarism, the reason why Thatcherism is associated with this theory is because inflation is the result of there being too much money in the economy and the British Government in 1979 seek to control the money supply in order to control inflation. The Thatcher government moved away from the principles of monetarism and focus around the supply-side economics, because the ideology wasn’t targeting

Similar Essays

Ten Principles Of Economics Essay

599 words - 2 pages Principles of Economics: Look at a newspaper or at the Web site to find three stories about the economy that have been in the news lately. For each story, identify one (or more) of the Ten Principles of Economics discussed in this chapter that is relevant, and explain how it is relevant.Article 1: Economic and Financial IndicatorsSummary of article content according to Economic and Financial Indicators (2008):&bull

The Seven Core Principles Of Economics

3047 words - 12 pages Economics is the social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems. All economists agree on one thing, the economy is large and it is unpredictable. However, throughout the years economists have developed some simple but widely applicable principles that are useful when trying to understand decisions that are made by everyday

Principles Of Economics The Usa’s Fast Food Industry

1342 words - 5 pages Nicholas SmithApril 27, 2009Principles of EconomicsPaper - The USA's Fast Food IndustryFast food restaurants represent one of the largest segments of the food industry with over 200,000 restaurants and $120 billion in sales in the U.S. alone. Fast food restaurants, also known as quick service restaurants, are noted for their short food preparation time. Some of the largest players in this category include international giants like McDonald's and

This Is Study Notes For (The Economy Today 8e, By Schiller) Principles Of Economics I Chapters 1 12 Most Notes Straight From The Book

9680 words - 39 pages Chapter 1: Economics: The Core IssuesScarcity exists because of the imbalance between our desires and available resources, forces us to make economic choices, and implies the need to use resources efficiently.Scarcity exists because of a lack of enough resources to satisfy all desired uses of those resources.Scarcity implies that an increase in law enforcement services produced in a given year will decrease the amount of other goods and services