Economics Concepts

Sir Shannon Scott Williams
December 30, 2010
Unit 1: Discussion Board

Economic Concepts

            A time ago, around 2008, I managed a restaurant for employment.  Then one day a gentleman offered me a job to manage an automotive plant.   Given the situation, I practiced tradeoff as defined in our textbook: a comparison of costs and benefits; (Krugan, Wells, 2009, p. 8).
My tradeoff, based on resources of labor, was either to continue working at the restaurant or take the new job.  Working at the restaurant would insure job stability due to high demand of food; however my salary would remain the same for quite a while.  The other side of tradeoff was to accept the new job which came with a higher salary, however there would be risk involved due to a crisis in the economy.  If the economy did not show improvement, then the company would fail.  Clearly, my tradeoff helped me understand what career path alternatives I should take.
            My alternative by choosing to stay at the restaurant, on a long enough timeline, I could have worked my way up to owning my own restaurant and have great job stability, but earn a lesser pay.  The other alternative is to take the new job and work my way up the career latter with higher pay and risk job stability.  The second alternative has a greater value due to the opportunity which is given regardless if the company fails or not.  Even if the company fails, I could always return to the restaurant and continue employment there.  Granted, my choice was to take the new job.

            Krugan, Wells. (2009). Economics (2nd Ed.).
            Worth Publishers. AIU Online Version

On Amazon:

22 comments to "Economics Concepts"

Post a Comment

More Economy information


About This Blog

This blog is my effort to try and share my knowledge and understanding of economics. If you stick around, you are guaranteed to learn something about analyzing the production, distribution, and consumption of goods and services.

Popular Posts

Web hosting for webmasters