How does economics affect your daily life? Give an explanation and at least three examples.?

Answer 1

Daily life economics
1. cost benefit analysis - we choose to perform or carryout an action where the benefit out weights the cost. Obviously, we only decided to do something when we know the rewards are better than the risk (aka more than fair or better than fair gamble = risk neutral) - if you do not carry out an action when it's a 50-50 chance of winning, you are risk adverse
2. rational spending rule - we choose to buy between two or more good and will go with the good that will give us the greatest satisfaction per dollar. In other words, given a choice to drink coke, slurpee, milkshake and each of them cost differently say for example coke cost $1.50 and slurpee cost $2 and a milkshake cost $3.50. We will choose to go with the drink that gives us the greatest satisfaction from what we can pay with $1.
3. inflation rates (exchange rates and interest rates)- it affects daily life because the rise in prices of goods (aka inflation) affects the power value of the dollar. For example before, you can buy 3 potatoes with $1, but due to the rise in prices (interest rates and inflation and all that), with your same dollar, you can buy only 2 potatoes. Or it used to cost $1.25 for a starbucks latte, but now you need to pay $1.85 for that same latte and hence increases your tendency to hold more money for the same transaction.

Answer 2

i have no money and i have to spend days making someone thousandsof which i only see a small percentage but life is good and i still hate you