Saturday, July 21, 2018

PRINCIPLES OF ECONOMICS

PEOPLE FACE TRADE OFF:
                   Trade off itself says that what buy and what not to buy. Regularly we will go for shopping there we always get confusion to choose product. To resolve this trade off we have to do cost benefit analysis.
                  Cost benefit analysis itself says that comparing the cost between the products and their benefits.

RATIONAL PEOPLE THINK AT MARGIN:
                  Margin means extra benefits. Large number of people while purchasing a product always looks into extra benefits.

PEOPLE RESPOND TO INCENTIVES:
                  Incentives means discounts and offers. Huge number of people always attract to the offers and discounts given by the manufacturers. It tends to increase the sales of the product.
                  These are the major principles of economics. 

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