Ultimate Home Decision
University of Phoenix
Making the purchase of a new home is one of the biggest decisions one will make in a lifetime. There are many different factors that play a huge role in deciding to buy a home. The ten principles of economics really played a role in my decision to purchase a new home. Whether it is a certain economic principle, marginal benefits or marginal costs, the strength of the economy, international trade or the roles of the domestic economy, all of this plays a huge role. Buying a home is a decision that depends on the amount of money one has saved, the strength of the current economy, and the dependability of the buyer’s career. When debating whether or not to buy a new home, I will be looking at several different principles that relate directly to my decision.
The ninth principle is the main principle that had an effect on my decision to purchase a new home. The principle is prices rise when the government prints too much money. You would think that the government printing more money would lead to more people having more money, but really it just leads to a hardship and depression of the whole economy. The best time to buy a new home is during times where there is high employment and an overall good economy, however today has one of the highest unemployment rates ever along with high inflation making it more difficult for families to depend on their employment.
There is one other principle that has an effect on my decision and the principle is the sixth principle. The sixth principle talks about how markets are usually a good way to organize economic activity. This means that the prices and some of the purchases of certain products are guided by the way the economy is shaped. An example is if I bought me home, I would need to have the home furnished with both appliances and furniture, and I would need to have food to eat in it; this is what a market economy is. Does trade really make everyone better off? Some people...