Economic Decisions: Should I Order The Lobster Or The Chicken
How People Make Economic Decisions
Craig Nickels
ECO 212
July 26, 2010
Joshua Long
How People Make Economic Decisions “Should I order the lobster or the chicken?” This is a choice a consumer may have when dining at a local restaurant. It also represents a deeper meaning when approached using the principles of economics. Three key economic principles that can be used in decisions people make concerning their time and money are people are rational, they respond to economic incentives, and optimal decisions are made at the margin (Hubbard & O'Brien, 2010). We face economic decisions every day; some may be trivial like the choice between lobster and chicken, and others more seismic in impact on our future. I will explore an economic …show more content…
Since April, I have been searching for a job. What started as hope for an immediate career opportunity had slowly diminished to “I just need a job!” After months of submitting my resume to lofty positions, I found myself grounded without a bachelor’s degree and running out of money. I was offered, and accepted, a position at Caribou Coffee for $8.00 per hour. A humbling endeavor, but an endeavor nonetheless. I continued to submit my resume between making lattes and doing homework. I received a call from a recruitment firm for the Target Corporation that had my resume. They informed me that Target wants to interview me for the position of Merchandise Remodel Coordinator that pays $11.50 per hour at their corporate headquarters in downtown Minneapolis. This would be a contract position through January 2011. I have already been offered a store management position with Caribou after three weeks of employment. The constant in this scenario is that I want to work for a global retail company. The decision is this: If offered, do I take the Target position or do I stay with Caribou and entertain their management offer? To weigh this decision, I must examine the marginal costs and benefits as they apply to my personal …show more content…
In my opinion, the marginal benefits outweigh the marginal costs in this particular situation. The opportunity cost, or sacrifice as I mentioned earlier, will be the management offer from Caribou and any other offers that may surface in the near future. This trade-off works in my benefit although it isn’t an optimal decision. The only incentive that may have altered my decision would be if Caribou offered me a position in their corporate office with a salary and
Craig Nickels
ECO 212
July 26, 2010
Joshua Long
How People Make Economic Decisions “Should I order the lobster or the chicken?” This is a choice a consumer may have when dining at a local restaurant. It also represents a deeper meaning when approached using the principles of economics. Three key economic principles that can be used in decisions people make concerning their time and money are people are rational, they respond to economic incentives, and optimal decisions are made at the margin (Hubbard & O'Brien, 2010). We face economic decisions every day; some may be trivial like the choice between lobster and chicken, and others more seismic in impact on our future. I will explore an economic …show more content…
Since April, I have been searching for a job. What started as hope for an immediate career opportunity had slowly diminished to “I just need a job!” After months of submitting my resume to lofty positions, I found myself grounded without a bachelor’s degree and running out of money. I was offered, and accepted, a position at Caribou Coffee for $8.00 per hour. A humbling endeavor, but an endeavor nonetheless. I continued to submit my resume between making lattes and doing homework. I received a call from a recruitment firm for the Target Corporation that had my resume. They informed me that Target wants to interview me for the position of Merchandise Remodel Coordinator that pays $11.50 per hour at their corporate headquarters in downtown Minneapolis. This would be a contract position through January 2011. I have already been offered a store management position with Caribou after three weeks of employment. The constant in this scenario is that I want to work for a global retail company. The decision is this: If offered, do I take the Target position or do I stay with Caribou and entertain their management offer? To weigh this decision, I must examine the marginal costs and benefits as they apply to my personal …show more content…
In my opinion, the marginal benefits outweigh the marginal costs in this particular situation. The opportunity cost, or sacrifice as I mentioned earlier, will be the management offer from Caribou and any other offers that may surface in the near future. This trade-off works in my benefit although it isn’t an optimal decision. The only incentive that may have altered my decision would be if Caribou offered me a position in their corporate office with a salary and