“Households and Economic Decisions”

 > Explanatory Article by Marios Kyriakou, MSc Economics


About the author: Marios Kyriakou has a bachelor’s degree in Economics from the University of Cyprus and a master’s degree in Economics from the University of Warwick. He is also a holder of CySEC’s Advanced Certificate in Financial Services Legal Framework and a professional in Online Trading, Forex and CFDs with more than 7 years of experience.

  Watch our Videos on YouTube


> Should you find this article and video useful share so you can help your friends too. Click the like button and the subscribe button to our YouTube channel  so in the future, you can be notified when we upload more useful free educational videos to watch.

<Last updated 14.03.2020>

Dear reader,

Hi! If you are interested in Economics, I’ve prepared the below to help your understanding about people’s behavior. You should take a look at this short article where I discuss the behavior of the household and its economic decisions.

A household is facing economic problems and encounters unwanted situations every day. Why? Because in the household there are people, and people need to satisfy their needs. The manager and people in the household must take decisions, the decision on who is going to work, who is going to cook, who will wash the dishes, how the disposable income will be used and more.

When talking about the economy as a whole there is no difference. All economic decisions involve answering the below questions:

> What types of goods and services to produce?

> How are they going to be produced? (combination of resources? technology?)

> For whom? how are the goods and services produced going to be distributed to the people? How can the output of the economy increase? How the economy of a country grows?

When people go to work, they provide their services in return of income/money. Money is exchanged for Goods and Services. In this case people buy goods if they have the money, thus acquiring the means to satisfy their needs and wants.

At this point you should be able to understand by now that, the more goods and services are produced and distributed to the people the more needs and wants are satisfied. So, by finding a way to measure the amount of output, or production, we have a way to understand if the economy, the economic activities of the people that is, is performing well or not.

That measure is GDP and we are going to talk about that later on.


 

“I hope I am clear on this one. If not, contact us on social media and we will do our best to help you.

Thank you for reading my articles and watching my videos.”

Marios Kyriakou

References:
Ιωάννου-Σεργίου Μ., Μάτση Μ., Σάββα Ν., Σταύρου-Παπαδοπούλου Λ., Οικονομικά Α’ Λυκείου, Α΄ Έκδοση 2016. Υπηρεσία Ανάπτυξης Προγραμμάτων, Κύπρος.
Βλαδιμήρου-Παναγιώτου Β. και Κουζαλή-Σωτηρίου Ε., Οικονομικά Β’ Λυκείου, Κύπρος, Α΄ Έκδοση 2016.  Υπηρεσία Ανάπτυξης Προγραμμάτων, Κύπρος.
Βλαδιμήρου-Παναγιώτου Β. και Κουζαλή-Σωτηρίου Ε., Οικονομικά Γ’ Λυκείου, Κύπρος, Α΄ Έκδοση 2017.  Υπηρεσία Ανάπτυξης Προγραμμάτων, Κύπρος.
Besanko, David Braeutigam, Ronald R. Gibbs, Michael, 2011, Microeconomics, Hoboken: John Wiley, 4th ed,
International student version
Frank, Robert H., 2010, Microeconomics and Behavior, New York: McGraw-Hill Irwin, 8th ed.
Estrin, Saul Laidler, David E. W. Dietrich, Michael ., 2008, Microeconomics, Harlow: FT/ Prentice Hall, 5th ed.

Disclaimer: This article is intended for educational purposes only and does not replace independent professional judgement. Its purpose is to act as a complementary educational service to society, promoting personal development and social, economic and cultural progress of citizens. While this content has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the creator to the accuracy or completeness of the information presented or any other written or oral information made available to any interested party and any such liability is expressly disclaimed.

© HCPro Human Capital Professional Education 2018-2020 | All Rights Reserved. HCPro Human Capital Professional Education is a tradename of COME WITH ME EDUCATION LTD - Company Registration No. HE 390680.

Log in with your credentials

Forgot your details?