Question

You have one semester left to graduate and you have the finances to do a maximum of four courses. Three of the courses are required courses. The last course slot belongs to an elective. You have narrowed down your choices to three electives, all of which are very popular and very useful courses that you are very interested in. Decide on the course you want to take. Then using at least two economic decision-making principles, explain why you are making this choice.

Answer 1

As a rational economic agent, out of the three electives I have selected, I will choose the one that will maximize my expected utility. This discipline, therefore, will be chosen according to my preference and with the marginal benefit that will add me.

Principle 1: Economic agents are rational

Principle 2: Economic agents think on the sidelines - this means that consumers make choices that add benefits to their utility functions.