Texting and Driving

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What is economic? Economic is a study of how people make choices among the alternatives. Since the resources that are available to world are very scarce, it is important to study economic in order to make the best choice that can maximize the total profits. Real life cases are the best examples for studying economic concepts. In this paper, there are three real life cases that illustrate economic concepts base on the Case in Point boxes from the Course Reader. The first case will define the economic concepts: choice, scarcity, and cost. The second case will describe how the stock market puts supply and demand to work. The last case will present the effects can be caused by private and external costs. Case in Point: Chapter 1.1-Defining…show more content…
To summarize, money is an opportunity cost for the supports from the government to the oil productions. Oil may be beneficial to today’s society, but oil production has more opportunity costs than benefits. Such as, the downside of oil production is to give up a healthy environment. Since oil production is harmful to its environment, it has caused many health hazards, pollutions, water contaminations, etc. Furthermore, oil industries are giving millions of dollars in order to gain supports from the government to the oil productions. As a comparison, oil production has more opportunity costs than benefits. So, is it economically wise to invest into oil production? Case in Point: Chapter 4.1-Putting Supply and Demand To Work; Section 3-The Stock Market Terrorism Is A Pain To America Why is 9/11 such a pain to America? 9/11 was a devastating day for America; many were dead or wounded after the attack. Furthermore, the attack had caused the stock market to plummet, which cause the stock market to close down completely for several days. As a result, there were changes to the market expectations, which affected the price of stocks and shifted the demand and supply curve of stocks. In short, sudden disastrous incident could change the expectations in the stock market, which could cause great damages to the market. For instance, the market reactions to 9/11 had changed the expectations for the stock markets, which caused devastating financial

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