How_People_Make_Economic_Decisions

How people make Economic decisions David Cosme ECO/212 Principles of Economics July 6, 2011 William Akamine How people make Economic decisions Economics played a major role in what, when, where, and even how consumers purchase products. When a consumer wants to buy a product, he or she thinks about the money, before spending. The buyers may believe that spending that money is not worth it. Consumers think about the cost of what they give up in that specific product or item. The buyers are rational thinkers and wait for the opportunity to arise before spending their hard earn cash on products or items. Many consumers respond to incentives when wanting to buy a product and wait for a big sale to spend the money. Marginal benefit is an additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. A consumer is willing to pay to consume the additional good or service provided. When the High Definition Televisions came out many consumers purchase the televisions without considering the fact on the long term effect. Many consumers did not do research on the televisions to make sure that the television were durable, easy to maintain, and easy for the consumer to use. The buyers need to be patient and wait for the special sales or deals on the products. The United States Economy needs to be dealt with by the government and the people need to express their concerns about how this affects the consumers. The economy has to be revamp and give the consumers what they want. Many of the buyers just want to spend money on any products without possessing that risk in the long term effect on maintenance. One prime example of a money-saving issue is the gas prices. The government has enough oil reserves all over the world and within the United States itself. The United States government does not need to export oil from other foreign countries, but it does. When the government purchases the oil this raises the prices up and hurts the Unites States economy. Congress can mandate that oil reserves be use instead of the foreign resources. Doing this action would help the economy to drop gas prices and make consumers use more of the product. The consumer needs to focus on how we spend our money and do not let the sellers fool us out of our money. Reference Hubbard, G. R. (2010). Economics: Foundations and Models (3rd Ed.). Cincinnati, OH: Prentice Hall.