Six Core Principles of Economics

Six Core Principles of Economics
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Six Core Principles of Economics
Question 1
The idea that people choose demonstrates that people want more than they can get because productive resources are limited. Because of scarcity, we usually select the alternative that offers the most benefits at the least cost (Boyle & Courage, 2021). While I am pursuing a career in music, I like playing basketball and fishing. However, I do not have all the resources, especially the time to pursue everything at once. As a result, I have chosen to concentrate on music since I have limited resources, especially time to pursue more careers.
Individuals respond to incentives in predictable ways implies that incentives determine the choices that people make. A change in incentives leads to a change in behavior (Koffia, 2012). The kind of music that I produce will be largely determined by the rewards available. A more rewarding genre in terms of audience reception will be much better to pursue than that which fewer people want. Suppose I discover that a particular style works for a given audience. In that case, I will be motivated to have more music customized to particular people to reap the benefits.
The concept that voluntary trade creates wealth indicates that individuals produce particular products and services because they have the intention to benefit from them (Koffia, 2021). Individuals trade what they make with others if they consider that they can gain something from the exchange. As a music student, I will create music because I know that I can benefit from it. For instance, if I perform in a concert, people will purchase tickets, making money from my performances. I will also sell my songs and get income. Because I can benefit from being a musician, I am encouraged to pursue music as a career.
Question 2
The new media economy includes digital platforms that create economic value for both producers and consumers. Initially, traditional media like newspapers, radio, and TV remained a source of income for most people. Today, the new media economy is driven by digital platforms like websites, mobile applications, and social media. The new media economy allows individuals to allocate their scarce resources with the hope of getting the most benefits. I was browsing through an online catalog to identify music that I could purchase. I m...