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Economics and My Daily Life

In: Business and Management

Submitted By mindicna
Words 1230
Pages 5
Economics and My Daily life
Stevens-Henager College

Abstract
Economics is a daily part of our lives I will be discussing how certain areas of economics affects my life these will include principles 2, 4 and 5of economics. I will discuss how supply and demand and consumer surplus are used in most areas of my life. My Economics class has given me a better understanding of how important economics is to our daily lives.

How Economics is used in my daily life There are 10 principles of economics and all of them are used in our lives but for the purpose of this paper I will be discussing how three are used in mine.
Principle 2- Opportunity cost “Because people face trade-offs, making decisions requires comparing the costs and benefits of alternative courses of action.” (Cleverley, Song, & Cleverley, 2011) This principle refers to what you have to give up in order getting what you want. For example, you can choose to study for an exam or be with family and friends. If you choose to study, your opportunity cost is quality time with family and friends. Opportunity costs do not always have a monetary value associated with them, rather, the cost is: anything of value to the person assessing the situation including energy and time. I have chosen to spend three years of my live to go to college for my Bachelors degree. This is costing me time with family and money. Will it be worth the opportunity cost? I believe it will. It will help me financially and with a better job with better benefits I will actually have more time with my then I do at my current job.
Principle 4- People respond to incentives “An incentive is something (such as the prospect of a punishment or a reward) that induces a person to act. Because...

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