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Economic Concepts Worksheet
Concept Application of Concept from Personal Experience Reference to Concept in Reading
All of us make many decisions each day that require looking at the costs and benefits that we incur because of those decisions. The field of economics relies heavily on marginal analysis to explain economic concepts.
Marginal analysis involves considering the effects of small changes (additions or subtractions) to a current situation.
When my husband and I were buying for a house, we always would consider the marginal benefits and marginal costs of what type of house we could afford versus what type of house we wanted to purchase. "Marginal analysis refers to the comparison of marginal benefits and marginal costs"
(McConnell & Brue, 2004, pg. 4)
When individuals act to satisfy their wants, they behave rationally. Rational behavior is
consistent behavior that maximizes an individual's satisfaction. The notion of rational
behavior rests on three......
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Title: Economics Worksheet
Approximate Word Count: 696
Approximate Pages: 3 (250 words per double-spaced page)
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