Assignment Details One of the lessons of economics is that \"there is no such th

Question

Assignment Details

One of the lessons of economics is that "there is no such thing as a free lunch." This means that businesses, consumers, and whole societies face tradeoffs whenever they make a decision. Please draw on your own experiences to discuss the following 3 items. Make sure you use economic concepts in your main contribution.

Explain a decision that you have made at work, or one concerning your career, or any major life decision that you have made.

Identify and explain the trade-offs that you faced.

List the alternatives you had, identify the highest valued alternative, and explain your final decision to the class.

Explanation / Answer

There is no such thing as a free lunch ..if we want to get something first we will have to give something to get it.Making decision needs trading one goal for another.

In simple words trade off is where one thing increses and other decreases. trade off is also used to describe situation of every day life , where we have to make rational decision .In economics trade off is expressed in terms of opportunity cost of a particular choice ,which is the loss of most prefferd alternative given up.

Some of examples of Trade-offs are-how students spend thier time ,how government spend thier revenue,how families decide to spend their income etc the other example is the gun and the butter .if we spend more on the national diffense (guns) ,less we will spend on the consumer goods (butter).We also have to compare the cost and the benefits of alternative course of action .

In my case I have to decide whether i should go to the collage for study or to a job .going collage was just not about the fees ,books , collage funds ,tution fees ect. but also the forgone wages that i could get if choose to go for a job.this is called the apportunity cost of resource .apportunity cost means whatever must be given up in order to obtain some item or the last best item forgone.

i decided to go and get the job because the if i would have decided to go to collage i will have to bear the cost of tution fees ,collage fees books etc. and also have to loose the (benifits) that is wages.i make this decision by comparing marginal cost and marginal benefits.

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