Discussion Post
In this discussion, we focus on how key economic principles affect the way a society goes about making decisions that maximize the utility from its limited resources.
Answer the following questions in paragraph format only:
1. Because of the fundamental problem of scarcity, we have to weigh options carefully before making a decision. Think about a major personal action you will be taking in the near future or have taken recently. Explain how you would apply the methodology of the "economic way of thinking" to arrive at the best possible decision regarding that action.
2. Economists often compare variables to determine the nature and extent of their relationships so that they can anticipate outcomes from changes in related variables. The relationship can be positive or negative. For example, the number of hours of exercise and a person's blood sugar count has a negative relationship. Describe a pair of economic variables with a positive relationship and a pair with a negative relationship. Explain the extent to which they change in response to each other and the importance of their relationship to economics. Focus on "economic" variables only.