Question

Describe any economic activity you do in your daily lives. You must include one economic agent, two choices, his or her one goal, and his or her scarce resources to reach that goal.

Answer 1

In this economic activity, I am the economic agent. I have two choices - (a) buy a cold sandwich at the college canteen or (b) walk across the street and buy a pulled chicken taco (I will get free salsa and sauce) at the food truck. I will be staying up late in the library, so I need a filling lunch. But as it is the end of week, my budget for lunch is $5. Canteen food may cost me $4.50, but the food truck taco will cost a full $5. After deliberating over the lunch issue, I decide to cross the road, not just for the free salsa and sauce, but because it will be keep me full till my library work is over. So I buy the taco, enjoy it and proceed to my post-lunch sessions in college.

Economic activity - I go to buy lunch in the lunch break

2 Economic agents - Salesperson at the food counter and I

two choices - Do I buy food at the college canteen or walk across the street and buy lunch at a food outlet.

One goal - Buy a filling meal at the most economical rate.

scarce resources to reach that goal - Budget for lunch is $ 5.