Economics

This is what the two students had to write on. Read the full Paper please.

• People may make bad decisions because they fail to compare the relevant costs and benefits. Do you agree? Provide an example of when you made a bad decision, and an example of when you made a good decision. Did you compare the relevant costs and benefits?
• Discussan example of behavior you have observed that could be described as “smart for one but dumb for all.”

Respond to the following in a minimum of 175 words: 

Post 1: Charles:  PLEASE REPLY TO WHAT Charles WROTE.  THE ABOVE IS ONLY FOR REFERENCE.  READ BELOW AND REPLY TO Charles. 150 word minimum

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Good evening Professor and Class, 

I agree with the statement about people making bad choices when he or she does not weigh all the options of relevant costs and benefits. A few years ago, I wanted to purchase a luxury vehicle. I pondered on the decision for a couple of weeks. The price of the car was $28,000; I had previously purchased a couple of other cars. I knew that I could afford the payment, and the interest rate would be low. I knew it was the wrong decision; however, I still decided to purchase the vehicle. The trade-in value of the other car had me financially upside down.  

The best decision I made was when I purchased my first home. I was giving so much money to other people renting apartments and other houses. I save so much money having my property. The interest rate was meager, and the price was a third of what I previously paid. I believe I compared the relevant costs and benefits. However, thinking about it now, I just think I just did not care. I was selfish, and I wanted to buy what I felt that I deserved. If you work hard, you should play hard.  

The high-end purchases to some people are smart decisions because it’s a personal preference. Some other individuals see these types of investments as a waste of money because they are the assets are depreciating value.  

Bottom of Form

Post 2: Melanie: PLEASE REPLY TO WHAT Melanie WROTE.  THE ABOVE IS ONLY FOR REFERENCE.  READ BELOW AND REPLY TO Melanie. 150 word minimum.

• People may make bad decisions because they fail to compare the relevant costs and benefits. Do you agree? Provide an example of when you made a bad decision, and an example of when you made a good decision. Did you compare the relevant costs and benefits? I do agree that people make bad financial decisions and fail to compare costs and benefits. I know this because I myself have made many financial mistakes related to this discussion. A very small example I have is an impulse purchase I made a few months ago. I heard a band I absolutely adored when I was younger was getting back together and would be performing in my city. As soon as the ticket centers opened up online I purchased 2 tickets even though I knew they would be over the actual worth of the ticket. I did so because I was worried the tickets would sell out instantly because their getting back togetehr was a big deal for people my age. I charged the tickets to my credit card which put me under about $1000. I tried to pay them off as soon as I could but my card has a high interest rate, therefore i found myself falling short and the interest not being worth it, therefore I decided to use my savings to pay off my debt. In the long run this is a small set back, but forking over $1000 of your savings is never easy. On the flip side, a good financial decision I belive to have made where the benefits outweights the relevant cost was getting my undergraduate degree. I am fortunate enough to work for a company that is paying for my MBA, but I do still have an outstanding loan for my undergrad that I am paying towards. In the end I can say I furthered my education, pursued my full potential to prove to the company I work for that I am willing to go great lengths for growth and on top of all of it, will hopefully make more money in the end because of it.

• Discuss an example of behavior you have observed that could be described as “smart for one but dumb for all.” A behavior I can think of that would be considered “smart for one but dumb for all” is the rise in pharmaceutical drugs. While distributors/doctors may be making more money, this means less and less have access to affordable drugs they need to stay healthy, or even live period. So in this case “one” would be the distributors/doctors and “all” would be the general public.

Reference:

Frank, R., Bernanke, B., Antonovics, K., Heffetz, O. (2019). Principles of economics (7th ed.). New York: NY: McGraw-Hill.

Post 1 and 2 need 150 each word replies.  Please be respectful and follow APA guidelines. PLEASE REPLY TO EACH POST ONLY. 150 WORD REPLY POST 1, THEN 150 WORD REPLY POST 2.

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