2. What Are Some Trade-Offs That People Face?
What are some of the financial decisions that people face? What are trade-offs? What are some of the trade-offs that you may face?
Some of the financial decisions that people face are buying a house, going to college, and buying a car. Trade offs are a balanced achieved between two desirable but incompatible features or a compromise. Some of the trade offs that you may face are going to college, making payments on a car, and loaning money. Going to college is a trade off cause your basically saying that you will pay them a tuition to go to there school. This means that you are compromising and you will pay so much every so often.
2. What is the cost of something?
The cost if something is the amount of money that you would pay to be able to have that item. When you go to the store you always want a ton of stuff but you don't have enough money to be able to pay the cost so you cannot have the item. …show more content…
What does it mean to think "at the margins"? How does this relate to financial decisions?
What this means is that you dont buy stuff by how much it costs but by how good the quality of the item is. This can relate to many different problems such as if you were to want a new shirt you see $5 shirts but there not as good of a quality as the shirts that are $25.
4. How do incentives change people's behaviors?
This can change peoples behaviors because people can start out with nothing so when you get what you want you want more and more and more of that. So lets say you make $200 a month from babysitting. You will begin to want to make more money so you raise the price.
5. Why is trade important?
Trade is important because we trade with other countries to get other resource. If we did not have trade then we wouldnt be able to have those resources. So lets say you need a certain something but it is only in another country you would trade to receive that item.
6. What are
Some of the financial decisions that people face are buying a house, going to college, and buying a car. Trade offs are a balanced achieved between two desirable but incompatible features or a compromise. Some of the trade offs that you may face are going to college, making payments on a car, and loaning money. Going to college is a trade off cause your basically saying that you will pay them a tuition to go to there school. This means that you are compromising and you will pay so much every so often.
2. What is the cost of something?
The cost if something is the amount of money that you would pay to be able to have that item. When you go to the store you always want a ton of stuff but you don't have enough money to be able to pay the cost so you cannot have the item. …show more content…
What does it mean to think "at the margins"? How does this relate to financial decisions?
What this means is that you dont buy stuff by how much it costs but by how good the quality of the item is. This can relate to many different problems such as if you were to want a new shirt you see $5 shirts but there not as good of a quality as the shirts that are $25.
4. How do incentives change people's behaviors?
This can change peoples behaviors because people can start out with nothing so when you get what you want you want more and more and more of that. So lets say you make $200 a month from babysitting. You will begin to want to make more money so you raise the price.
5. Why is trade important?
Trade is important because we trade with other countries to get other resource. If we did not have trade then we wouldnt be able to have those resources. So lets say you need a certain something but it is only in another country you would trade to receive that item.
6. What are