Mark Bien J.

Belga September 09,2020

C0-21 

Application of first four (4) economic principles in real-life situations...

The first four (4) principles of economics tells us how people make decisions:

1) People face trade-offs

2.) The cost of something is what you gave up to get it (Opportunity cost)

3.) Rational people thinks at a margin (Margin means additional/extra)

4.) People respond to incentives

Based on these principles choose only one (1) and generate a real life situation wherein
that chosen principle was applied...

In real life the opportunity cost that happens to most of us is when we are
choosing between schooling and working because some of us will choose depends on
our situation if we are financially unstable we will go to work that's why we will lose the
opportunity to gain knowledge from school or the benefit. Therefore we could say that in
order to choose between the option you should look for its potential benefit to avoid
regretting the decision made.