Economic Models Responses

Human Behaviors and Economic Models Response

Peer Response Post

Response to Larissa Huber.

Hello Larissa Huber. You have made variable contributions that ought to be considered by economists as they make economic models that will make individuals to get the best of what the market offers and their life situations demands of them. Thus, the concerned person or firm will not be compelled to compromise on that which satisfies their needs for quality goods and services for that which is available to solve their problems (Mankiw, 2021). I agree with your sentiments that human beings are filled with an insatiable appetite for things making them have a deep sense of innate desire for fairness is a very correct observation. Thus, if employers and employees desire for fair treatment, it can be integrated into economic models that will increase satisfaction in any engagement individuals have in their life. Moreover by requiring fairness as part of the economic model, it will eliminate the greed and preference for profit in the market.

Larissa, the observation that individuals are inconsistent especially in working for their long-term goals is in order. This occurs due to the time and resources that must be expended towards facilitating the attainment of future goals such as saving for retirement. Spending for today’s needs becomes the opportunity cost saving for retirement to take care of one’s needs at old age (Strong, 2020). Thus, it is prudent for behavioral economists to consider integrating the inconsistent observed in human behaviors in the economic model to address the challenges it poses. However, the rationality of the consumers should be looped in the model in addition to the inconsistency and desire for fairness observed in human beings. Human beings are thought to need more for less making them become rational consumers.

Response to Candice Goodman,

Hello Candice. Your observation on the issues that economists ought to include in the economic model was great. In your post, you have discussed at great length the factors that are omitted in the current economic model as rationality and logical thinking. On the rationality, you hold that individuals are homo economics, and if this is integrated into the economic model development the cost-benefit analysis of the person’s action will be well weighted (Strong, 2020). According to your observation, the rationality concept will help the individuals to choose the best course of action among the available options making them get the maximum satisfaction. Further, Candice the observation that the economic model should include the ability of an individual to think logically is quite in order. This is because critical thinking will eliminate the uncertainty, disorientation, and impulsive behaviors observed in human beings.

More so, the individuals will take proactive action in every decision they make rather than being absent-minded due to the complex nature of the human life that resides in their decision-making process. However, I hold the view that together with the factors identified as essential for economic models by you, we need to integrate the issues like the effect of substitutes, taste, and fashion in the economic model apart from price (Mankiw, 2021). When taste, substitutes, and fashion are integrated into a developed economic model the rationality concept will come out more clearly. More so, the logical thinking will be well captured in the decision-making process since there are various alternatives to choose from.

References

Mankiw, N. G. (2021). Principles of Economics (9th ed.). Cengage Learning, Inc

Strong, N. (2020, November 2). Study: Happy employees are 13% more productive. Study: Happy Employees Are 13% More Productivehttps://blog.wellable.co/study-happy-employees-are-13-more-productive#:~:text=In%20a%20study%20conducted%20by,employees%20are%2012%25%20more%20productive.

Essay Tutors
Calculate your paper price
Pages (550 words)
Approximate price: -

Why You Should Choose Us

Affordable Prices

Since we know that we are dealing with students, either part time or full time, many might be having financial constraints, but still want to pursue academic life. This has made us ensure we have very affordable prices, and wonderful discounts, yet give high quality products.

Professional Writers

Our reputation has been built because of the dedicated and highly qualified writers in our team. The writers give clients high quality products which guarantees return clients and referrals.

Quality

Our team is dedicated to giving clients the best quality products. However, if a paper does not meet the requirements stated by the client, our team will provide free revisions to the satisfaction of the client.

Moneyback guarantee policy

We believe that clients should get value for their money. If the client finds that the product has not met the requirements stated, we will refund the amount paid.

Original papers

We understand how plagiarism can ruin clients’ careers and reputation. We thus strive to provide original papers to our clients. We use several tools to check plagiarism. This ensures that clients get products that meet their institutions’ standards.

24/7 Customer Support

You can reach our support team via, live chat, email or phone. All your issues will be dealt with asap as the team works round the clock.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have other errands to run? No need to worry. Place your order with us, carry out your errands while we do your paper and deliver on time.

Blog Writing

Give us a topic you want your blog based on, and let our team handle the rest. You will get the best article to be published in any forum you want. We have able team to do all the work for you.

Assignments

Many students are given assignments by their tutors. However, students find it challenging to just even come up with a topic. This should no longer be a problem to you. Just visit our site, contact the support team that will help you place your order, and find the best writer to handle the assignment.

Dissertation Services

Dissertation has proven to be challenging to most students. For this reason, we have specialized writers who handles only these kind of papers. You will be in constant touch with the writer and the support team once you place a dissertation order to make sure nothing goes wrong.

Editing and Proofreading

Some students have good points and writing prowess. However, they make minor mistakes that deny them good grades. To avoid such cases, you can give us your already written paper so that our team can edit it to the correct formatting style, language, proper flow and the correct academic language. This gives you an upper hand to get the best grade than a person whose job has not been edited.