Question

Now you need to write an informative paragraph that will help Frankie to understand his options.Create an outline that identifies at least three economic strategies that Frankie should use when making his decision.

Answer 1

ECONOMIC STRATEGIES IN MAKING DECISIONS :

1.) Frankie should work on a budget — The budget constraint will influence nearly all the economic decisions he makes since this will ensure that the expenditure does not exceed the capital available.

2.) Frankie should aim at maximizing value and minimizing the cost in his economic decision making.

3.) Frankie should rational in his decision making by taking all the available information into account in an objective manner before making a decision. He should not rely on history or beliefs by other people.

4.) Frankie must consider the concept of Cost versus benefit keeping in mind that in an economic decision, something must be gained and something must be lost. He should ensure that the benefit is higher than the cost.

With these, Frankie will. Make sound decisions.

Answer 2

Strategies for Frankie to consider

1.) Needs and wants

A.) Whether Frankie needs new shoes

2.) Opportunity cost

A.) Purchases and savings Frankie must give up if he buys new shoes

3.) Short-term and long-term goals

A.) Whether Frankie needs shoes now, or can plan to buy shoes in the future