Question

Help with these questions (Economics)

Answer 1

Give an example of a fairly major purchasing decision you've made in your lifetime. How did you justify the purchase? How did you prepare for it financially once you decided to make the purchase?

Answer 2

Being a high school student , I haven't really made any "great" purchase

Answer 3

@Vocaloid

Answer 4

That is a very good point... What, did they expect you to put down car? :/

Answer 5

Idek

Answer 6

Have you bought anything for over 500$? Maybe you could use that? :/

Answer 7

I think you mentioned you had an SAT tutor, that was probably really expensive

Answer 8

Yeah and now that i think of it i have bought like really expensive makeup as well

Answer 9

the other questions are pretty self-explanatory, just explain why you thought it was a good idea and how you changed your savings/spending habits, etc. before and after

Answer 10

An example of a fairly major purchasing decisions I have made is makeup. I have a deep interest in makeup and use alot of my money on that. Everytime I get birthday money or money from working, I save up to buy a specific makeup product I want to buy next.

Answer 11

is this good/

Answer 12

I think so

Answer 13

What aspects of your decision-making process fit the description of a rational choice? Did you consider costs and benefits? Did you pay attention to both monetary and nonmonetary factors? Did you consider opportunity costs and your long-term goals?

Answer 14

I definitely did consider the prices and the savings I have for it. I do not buy anything out of spite or anything else.

Answer 15

This is what I have so far

Answer 16

rational choice in economics means a choice that results in one's maximum benefit/utility at the least cost, so you could explain why you thought the purchase was the best/most desirable use of your money at that time

Answer 17

Costs and benefits is pretty self-explanatory, just the list the potential upsides and downsides that you considered before you bought it

Answer 18

Monetary vs nonomentary

Nonmonetary is a little harder to think about, I guess you could talk about personal satisfaction, maybe how the product looks, how it would improve your self-esteem/how people perceive you

Answer 19

anyway, I hope that gives you some indication on what you could include in your response, lmk if you want me to look over it

Answer 20

I thought these products were the best choice because since I have an interest in makeup, I am always trying to try new look sand experiment with it. In order to do that, I buy new makeup. I definitely did consider the prices and the savings I have for it. I do not buy anything out of spite or anything else. Some upsides I considered of buying it is the fact that it is the newest product out there most of the time, and makeup is a hobby to me, which is why I considered that to be an upside if I bought it. A downside to buying it

Answer 21

I'm on the downside part, ugh stuck , can't think of any downsides

Answer 22

well, every time you buy anything you are giving up the opportunity to use that money on something else, that's what economists define as opportunity cost

Answer 23

especially in the case of makeup, unless its brand new or very very gently used it'll be hard to re-sell

Answer 24

trends/opinions change fast, there was the possibility of you finding new makeup that was even better, but then you wouldn't have any money left to buy it

Answer 25

just throwing stuff out there

Answer 26

Right, so a downside is that that newest makeup is usually a trend and that trend may end fast and another thing/product may start trending, which will show that this may be a waste of money, because before I know it another product will be the "new" thing

Answer 27

yup

Answer 28

I thought these products were the best choice because since I have an interest in makeup, I am always trying to try new look sand experiment with it. In order to do that, I buy new makeup. I definitely did consider the prices and the savings I have for it. I do not buy anything out of spite or anything else. Some upsides I considered of buying it is the fact that it is the newest product out there most of the time, and makeup is a hobby to me, which is why I considered that to be an upside if I bought it. A downside to buying is that that newest makeup is usually a trend and that trend may end fast and another thing/product may start trending, which will show that this may be a waste of money, because before I know it another product will be the "new" thing. I paid attention to both monetary and nonmonetary factors. I know that since makeup is a hobby to me, it is something that will make me feel good. I also know that when I put makeup on and people compliment my skills, it makes me feel good that I have mastered what I have always wanted to do.

Answer 29

Added a bit of the monetary and nonmonetary factor at the end

Answer 30

good, for opportunity costs we kind of touched on that earlier, but for long term goals you could mention that you thought about the major purchases you would make in the future like college apps/tuition/etc. and how buying something now might temporarily set back long term savings goals

Answer 31

What information did you have or obtain that helped make your decision a well-informed one? Was there something you didn't know beforehand that you wish you had?

Answer 32

I definitely know that I am going to college in a couple of months. This gives me enough information to come to terms with the fact that I need to start saving up for college and college costs.

Answer 33

That's a good start

For the actual purchase itself, you could talk about how you used your knowledge of makeup/advertising/branding/etc. from tv/the internet/friends/etc. to select a high quality product and not be ripped off

Answer 34

I used the opinions of many beauty gurus that used these specific products. I saw them on YouTube explicitly sharing their opinion about the product and visually showing how well the product works as a makeup product.

Answer 35

good

for "something you didn't know beforehand that you wish you had" I'm kind of drawing a blank but you could think about something new you learned that changed your opinion on the product/your decision to purchase it

Answer 36

Maybe say that some products that I bought were very expensive and were "advertised" as being long lasting or even waterproof and then when bought and tested, it was a rip off. It turned out to be the opposite

Answer 37

yeah that's good, I know nothing about makeup lol

Answer 38

Lol its alright

Answer 39

Were there any parts of your decision-making process that weren’t rational?

Answer 40

idk, maybe being swayed by advertising/biased people, buying a product before testing it, etc.

Answer 41

wait i am trying to describe why I shouldn't have bought it?

Answer 42

not necessarily, just factors that ~might~ have swayed you to make a bad decision

Answer 43

"not rational" just means "not resulting in the maximum utility for your cost"

Answer 44

OKay so

Some parts of my decision-making process that weren’t rational was definitely social media. I see that every beauty guru or even common person has bought this specific new "trending" product and it makes me want to buy it as well since I love makeup. I also feel that the companies always have these sales on these makeup products just to pull customers in to buy it. I am one of those customers that go running in if there is a sale on makeup because it can be so expensive at regular price.

Answer 45

yup that's very good

Answer 46

Thank you bunches