According to the Principles of Economics, economic principles guide how we make economic choices and how we interact in the market. What role do economic principles play in your personal economic decisions (choices)? Do you encounter scarcity either personally or in your workplace? What are the kinds of scarcity you encounter?To make rational economic decisions, we need to compare costs and benefits. Suppose you are trying to decide whether to take a vacation. The majority of the costs of the vacation are measured in monetary terms (dollars), but the benefits of the vacation are generally non-monetary in nature. How do you compare the non-monetary benefits with the monetary costs? What are the economic (opportunity) costs of going on vacation? Explain in terms of economic costs, which include both monetary and nonmonetary costs.
