Sample Microeconomics Essay Questions Explained

Sample Microeconomics Essay Questions ExplainedIn many samples of microeconomics essay questions you will find examples of people who are different in many ways and yet they do the same things. In these circumstances you will find that marginal utility theory will help to explain how they do this.The marginal utility theory is about maximizing the value of a good or service that you have to pay for. People are doing this as they participate in markets are real economic systems where people, goods and services are competing against each other. One market gets a higher value because it is being offered at a lower price.In a market system with prices set in equilibrium people have a choice to pay more or less than they are willing to. They make choices based on the cost, the quality and the quantity of the good or service they want to purchase. Sometimes people will be motivated to take a good or service that they can't afford and when they pay too much they are increasing their risk of not being able to pay off their debt when they reach the end of the month.In some cases when one of these people is taking advantage of another person he/she will believe that they are doing what is best for them and the rest of society but in reality they are not, they are simply applying the principles of marginal utility theory, which is an indirect way of saying selfishness. They are only concerned about themselves and not the welfare of others. This results in them getting the most out of the goods or services they purchase.For example the John the Obese and Jane the Thin will be in opposite situations but they will still both be happy if they choose to participate in different charities. But because they are being selfish they will be choosing the charity with the highest price and so they will receive the greatest return. The market has provided them with both the healthiest diet and the lowest price.So far we have described a market system with buyers and sellers. A market that seems quite similar to an environment in which people are voluntarily participating in common projects with others. In these cases people are voluntarily working towards the common good rather than working against each other. They are not doing anything that would bring about their downfall.However it is possible for these circumstances to have bad or good feelings about them. The good feelings they were experiencing in one situation can be undermined by feeling exploited by others in another situation. Their well being will no longer be directly affected by their actions because their actions affect no one.While market capitalism is an ideal system which should be upheld, it will only work if all participants are living within the rules of the market. Many people who try to use public money to solve social problems are selfish and so they are in danger of ruining the market and therefore the country. On the other hand, if they voluntarily contribute something towards the well being of the society then they will have less concern for the others as they will be concerned with their own well being.