Economics as a Major Driver of Peoples Behavior Paper

Economics as a Major Driver of Peoples Behavior Paper

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Economics as a Major Driver of Peoples Behavior Paper

If economics drives most of our behavior, what role does money/liquidity AKA finance plays in the Economy, hence our behavior?

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What role does money play in creating economic value?

1. Reply 
2. Student 1: Economics drives our behavior by allowing us to be able to buy the things that we want. This availability of ready money, or liquidity, allows people to buy items at certain prices meaning that more people are able to afford more goods and services at normal costs.
3. However, there are positives and negatives that come with economics and liquidity. One positive is that with more money available in the economy people are able to spend more on items they need. One negative is that with more money in circulation, this causes inflation meaning that when prices rise fewer goods are able to be bought thus making fewer goods able to be purchased.
4. Another positive with money is that there is a set value on currencies around the world meaning that there is no bartering system thus allowing all countries to be able to make transactions with each other. A negative that comes along with this is that we are placing value on pieces of paper and metal that would otherwise have no value. This causes greed within countries and creates shortages of paper and metals used to make currencies.
5. With shortages of paper comes environmental factors such as shortages of trees which creates a problem worldwide. Another positive that comes with liquidity is that people are always able to take paper money out of their bank accounts as long as they have funds within those accounts.
6. This is a big difference compared to the Great Depression when almost all of the Banks were not able to give people their money back that they deposited. Thus, without money, people would not be able to get the goods or services they want and there would be no set value on money to do international business.

Money plays a big role in creating economic value all around the world. Money creates economic value because we give the dollar the power to buy goods. This pattern goes back many hundreds of years which is prevalent in the way Native Americans used seashells as money to buy goods as well as how early settlers used the bartering system to exchange their goods for other items that they wanted.

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Money around the world allows people to buy things that they want even in other countries with equivalent currencies. The specific definition of economic value is that it is a measure of the benefit provided by the good or service to an economic agent.

This means that someone weighs the positives and negatives of a job before they commit to it such as someone being offered extra money working a night shift. This person would only commit to the job if they thought the amount of work was doable for the extra amount of money. This example shows that people are willing to do goods and services for specific economic value. Thus money plays a huge role in creating economic value.

1. Liquidity is important as banks allow the consumers to deposit funds that could be withdrawn when a case is needed. Having cash ready at all times allows an easier flow of money and a quite good system that helps our capitalistic society.
2. Due to liquidity, there is a set value on the currency allowing a good system of allowing easier transactions with the global economy. In the other hand, there are definitely pros and cons to liquidity. A con is that when a lot of money is in circulation in our economy, inflation can happen causing a disruption in prices.
3. Definitely, behavior comes into play when good or bad actions come upon liquidity. Money is important as it has a set value given by society and the liquidity of it.
4. Money plays a huge and an important role in creating economic value as it brings the power to buy goods and services. Before being on a system of bartering, money has made it easier and more convenient, of course, given set rules and restrictions, it has created a better system in which people can gain goods and services.
5. In other words, money is a value in which it is stored meaning that wealth can be held and used to acts of deferred payments, globally. Money as well is distinguished from other goods by how it serves as a medium of exchange. In simple terms, money has value in the economy which creates economic value in our capitalistic society.

Economics as a Major Driver of Peoples Behavior Paper

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