Assignment 2

Fight the economy, shop to save jobs

One mall store has this ad to lure shoppers during the Christmas season. Does this ad make sense to you? (Focus on the line "Fight the economy, shop to save jobs"). Do you agree with what it says?

I agree. As I read the line “Fight the economy, shop to save jobs” means that we should fight literary the falling economy of our country and help to produce more jobs in our own country. It means that when you buy lot of things in that mall or any other malls, you are helping the economy in a way that when that mall had increased their income, definitely their number hiring people will increase also. We all know that SM’s are a big source of jobs. SM hires millions of people and that is, because their business is successful. That explains the advertisement, help the business, you will help also the people that are working and will be working on that business. 

Assignment 1

People face trade-offs

The first principle of economics states: "People face tradeoffs". Give at least two examples (in paragraph form) in your life where this principle is true.  

It states that something must be forgiven so as to attain one thing. Trade-offs between two choices is obvious while making decisions. For example, one time goes to a theatre to watch movie, I am trading off the money that I can be use to buy food, buy books or, get other required things. At the same time I am also giving up time that I can spend working, playing, reading, studying or, doing some other task.

Similarly, society is also bound to trade-off between equity and efficiency where efficiency refers to get most from the scarce resources and equity refers to the fair distribution of the benefits of those resources. For example, Unemployment benefits creates a trade-off between equity and efficiency as it increases equity by providing money to unemployed people while reduces efficiency because of lack of work force.