Question

Describe a social phenomenon, pattern, behavior, etc. that you see in your life and ask a question about it. Answer that question using the economic way of thinking. Be sure to clearly link your question and answer to the economic way of thinking? I'm a little bit confused in this question and would like some help on this to get a better understanding

Answer 1

Most importantly, and an apparent dimension of social phenomena is it involves the observable behavioral aspects of a person that influences to another person. For example - competition, conflict, marriage, divorce, racism, casteism, religion, atheism, social movements etc.

Social phenomena include all behavior that influences or is influenced by organisms sufficiently alive to respond to one another.

The proposal here advanced is consideration of social phenomena as the interaction of organisms which are sufficiently alive to respond to each other, including all behavior which influences or is the result of other behavior. This includes the influences from the behavior of past generations.

Economic way of thinking examines how people make choices under conditions of scarcity and systems of production, consumption, and distribution. It also examines the effects of government policy and actions on market outcomes.

The four elements of the economic way of thinking are:

• (1) Use assumptions to simplify the analysis.
• (2) Explore the relationship between the two variables by Ceteris Paribus.
• (3) Think at the Margin.
• (4) Rational people respond to Incentives.

Economic Way of Thinking (The economic approach about the choices that must be made to cope with scarcity.)  The economic way of thinking with five core ideas: (1) Rational choices: A choice that uses the available resources to obtain the maximum net benefit.

Being able to think well and solve problems systematically is an asset for any career. Critical thinking is very important in the new knowledge economy. Good critical thinking promotes such thinking skills, and is very important in the fast-changing workplace.

The model is based on the concept of opportunity cost, trade-offs, and scarcity. When drafting the model, it is assumed that: the economy produces only two goods, there are no changes in the factors of production and the technology level, and capital intensity remains constant (ceteris paribus).