After reading the article “Gas prices drive students to online courses,” I have evaluated three principles. The first one is decision involves tradeoffs. This principle refers to the ability to make compromises (Melissa, 2018). For instance, a person may decide to give something up to get something else they may require more. For example, Christy a sophomore at the Northampton Community College liked going to school to pursue her courses. Still, she decided to take an online course due to an increase in the price of gasoline.
The second principle is the opportunity cost of the resources. This principle emphasizes the cost of whatever it is that a person has given up. The choice that is being made has an economic benefit/ profit to the decision maker. For instance, Christy decides to take an online course since the gas price has increased by $4 per gallon. Therefore, taking an online course will be of greater benefit to her learning since she will be able to save the time she spends traveling to school and the money she spends on gasoline.
The last principle is a cost-benefit analysis. This principle involves marginal thinking to make small adjustments in the life and business perspectives. For instance, Christy decided to take an online course rather than take a trip to the school every day. Based on the cost-benefit analysis, she will have saved one hour of traveling and the money needed for transportation. Therefore, based on this analysis the student will have enough time to do her studies while at home, and similarly, the student will have the capability to save a lot of money that is spent every day.
Works Cited
Melissa, H. (2018, January 16). An Explanation of the Ten Principles of Economics. Retrieved February 5, 2018, from Bizfluen: https://bizfluent.com/info-7880863-explanation-ten-principles-economics.html
