Hansen, Salemi and Siegfried (2002) in a study titled “Use it or Lose it: Teaching Literacy in the Economic Principles Course”, found that there was no demonstrable difference in understanding basic economic principles months after students left the course in America. Arguably, these basic principles would not be exhaustive and diverse opinions are bound to exist from different economist. The list of questions is endless, but by understanding some of these basic economic principles we could find plausible economic reasons for such irrational behaviour. Appreciating the operational context of the basic economic principles, we could find meaning for the two hypotheses. Efficient economic systems are designed to utilise resources with low opportunity costs first before turning to those with higher opportunity costs, and in the most efficient way.

Source: Standard Digital July 24, 2021 07:52 UTC