School Work

3rd Principle of Economics (1)

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based on Mankiw's
  Rational People Think at the Margin Lacson, Reinier Ogsimer, Juk Lobarbio, Raymon Santos, Elijah    ã Economists use the term “marginal changes” to describe small incremental adjustments to an existing plan of action. ã Keep in mind that “margin” means “edge”, so marginal changes are adjustments around the edges of what you are doing. ã In many situations, people make the best decisions by thinking at the margin.  ã People make decisions by comparing the marginal benefit with the marginal cost. ã For every economic decision that you make, you need to look at the marginal return for that decision. ã A rational decision-maker takes action if and only if the marginal benefit of the action exceeds the marginal cost.  1 st  Scenario Imagine a working college student studying in UST. He works at McDonalds for his own tuition fee. When given too much work or school related tasks, instead of quitting his job at McDonalds, he simply cuts back a little on his work hours. He did not quit, but instead “Adjusted” his schedule to meet the current situation.
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