Mahela Plasencia - whats to love about econ

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1. What is the primary objective of Economics? (What is the core of Economics?) Explain your answer. Economics aims to understand how societies allocate limited resources to satisfy unlimited wants and needs. It studies how individuals, businesses, and governments make choices about production, prices, and quantities in markets, and how these decisions impact overall well-being and resource allocation 2. What are the basic questions economists must answer when they are evaluating an economic policy (public policy)? ● What are the goals of the policy? ● What are the potential effects? ● What are the trade-offs and costs? 3. What does it mean to think like an economist? How do economists think differently than other people? Thinking like an economist involves analyzing choices and behaviors based on the principles of scarcity, cost-benefit analysis, and rational decision-making. Economists consider the unintended consequences of actions, emphasize the importance of incentives, and often rely on quantitative methods to understand complex systems. This mindset encourages a systematic approach to understanding human behavior and the allocation of resources, setting it apart from more intuitive or immediate perspectives. 4. Is it common for marginal costs to increase and marginal benefits to decrease? Think about a simple activity you can practice (for instance, eating 1,2, 3...20 chocolates; or drinking 1,2,3, and 4 water bottles when you are thirsty; or repeat 1,2,3,4 times the same sport practice in a day after school). What is the marginal benefit from the first, second, and third practices for the activity in a day? What is the marginal cost from the first, second, and third practices for the activity in a day? Hint: It is important to remember that cost and benefits are not strictly financial. In many cases, it is typical for the marginal costs to rise and the marginal benefits to decline as additional units of an activity are undertaken. For instance, taking the example of practicing a sport after school, the initial practice may yield high marginal benefits as it brings excitement and enhances skills. However, the marginal benefit of the second practice may diminish due to fatigue, and by the third practice, it might decrease even further due to diminishing returns in skill improvement. Conversely, the marginal cost of the first practice may be relatively low in terms of physical strain, but it could increase with the second practice due to fatigue, and further
increase with the third practice due to exhaustion and potential time constraints. 5. Is it rational for some people to end their formal education with high school degrees, some to finish with college degrees, and some to obtain graduate degrees? Beyond the ability to pay tuition, what are some other reasons why different people stay in school for different lengths of time? How might the non-monetary cost of college differ among individuals? How might the benefits differ? It is rational for individuals to decide to end their formal education at different levels, taking into account their goals, interests, and career aspirations. Various factors, including desired career paths, personal strengths, and life circumstances, play a role in shaping these educational decisions. The non-monetary costs of pursuing higher education, such as the time commitment and opportunity cost, can vary depending on individual circumstances. On the other hand, the benefits of college education encompass an increase in knowledge, acquisition of skills, and the potential for higher earning potential, all tailored to individual goals and preferences.
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