NAME: KIRAN

ID: 11155

QUESTION # 1
WHY STUDY ECONOMICS?
1- To learn way of thinking
The study of economics teaches us a way of thinking and helps us make
decisions.
 OPPORTUNITY COST:
The best alternative that we give up when we make or decision.
Alternative options, choose best according to the costs and benefits.
 MARGINALISM:
The process of analysing the additional and incremental costs or benefits a
rising from a decision.
 EFFICIENT MARKET:
A market in which profit opportunities are eliminated almost instantaneously.
Markets in which buyers and sellers have complete knowledge about goods,
costs and benefits and the assets prices reflects all available information.
2- To understand society:
To study economics, it is very important to understand its history and how it
functions. It is a period when new manufacturing technologies and improved
transportation gave rise to the modern factory system
3- To understand global affairs:
An understanding of economics is essential to understand the global affairs.
4- To be an informed citizen:
To be an informed citizen requires a basic understanding of economics.
 QUESTION NO: 2
I agree with Mexico firm because it should be there own decision that they
should export shirt with tariff or without tariff.