XECO 212 Week 1 Individual Assignment A New House – Readiness
Deciding to buy a house is a lifelong goal for many people. Imagine that you are renting a studio apartment and have just discovered you are having a baby. Your present apartment is small and far from schools and local services. You have decided to move. There are many factors that come into play when making such a large and weighty purchase. Examine the decision-making process from the perspective of an economist. In your Final Project, you use these principles and other factors to make a final decision whether to buy a house.
Consider the 10 Principles of Economics as outlined in Ch. 1 of the text.
Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision could have long-term financial consequences.
Submit a 250- to 300-word response addressing the following points:
Choose two of the 10 Principles from Chapter 1 that you think play a major role in your decision.
Discuss those Principles' roles in your decision making. Provide specific examples and application.
Explain how that influences the marginal benefits and marginal costs (i.e. cost/benefit analysis) associated with the decision to purchase a house.
Tip: The most relevant Principles to this CheckPoint are Principle One (Trade-offs), Principle 2 (Opportunity Cost), Principle 3 (Marginal Thinking) and Principle 4 (Incentives). The topics contained in Principles 5-10 will covered in detail later in the class.
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