Economic principles - Essay Example

of Affiliation Economic Principles Economic engagements are guided by some principles that go a long way to consciously or unconsciously influence our daily decisions. Of particular interest to me are the economic principles that people respond to incentives and, secondly, is that people face opportunity costs. “People respond to incentive” is a fundamental economic principle that I particularly find inevitable in my behavior. It is like I was designed to autonomously respond to incentives whenever they are availed.

As is the case in most situations, I find myself drawn either unconsciously or consciously to events or rather products that are accompanied by incentives. I find them much appealing to my values as compared to those that do not bear the incentive I desire. For instance, I am more than ready to study hard so that I can gain the incentive of one day becoming a successful economists. Another case is that I like helping others who are facing hardship because I believe they might be of use to my political agenda at one moment in time.

In both of the above cases, there is always that incentive that motivates my present behavior.“Opportunity cost” is the other economic principle that often characterize my life. I desire so much yet I cannot get everything I want at the same time. For example, I like sleeping!!!! (But for the fear of being misquoted as lazy I accompany it with a disclaimer). On the other hand, I also want to attend classes so that I can gain the necessary knowledge in my major. Since I cannot sleep and attend classes at the same time, I am always forced to give up on sleep for the sake of attending classes.

In this case, sleeping becomes my opportunity cost.