Journal entry questions are related to the application ofthe key concepts you learn to the real-world economic issues. The
Journal questions contain the key economic principles and ideas related to the Macroeconomics topics you are learning. Please
feel free to express your perspectives, and state how the economic principles and ideas affect your economic decision making
process.
Title your Journal entry: Unit‘l Journal
Journal
According to the Principles of Economics, economic principles guide how we make economic choices and how we interact in
the market. What role do economic principles play in your personal economic decisions (choices)? Do you encounter scarcity
either personally or in your workplace? What are the kinds of scarcity you encounter?
To make rational economic decisions, we need to compare costs and benefits. Suppose you are trying to decide whether to
take a vacation. The majority ofthe costs ofthe vacation are measured in monetary terms (dollars), but the benefits ofthe
vacation are generally non-monetary in nature. How do you compare the non-monetary benefits with the monetary costs?
What are the economic (opportunity) costs of going on vacation? Explain in terms of economic costs, which include both
monetary and nonmonetary costs.
