Introduction
Various economic principles are applicable in purchasing of assets. When purchasing a house economic principle influence the choice made regarding the deal. This includes principles such as the principle of trade offs, opportunity cost, thinking at margin rationally and the principle of response to incentive. One ought to carry out a cost benefit consideration to gauge whether the net benefit of making the decision to purchase a new house is positive.
The strength of the economy will influence the marginal costs and marginal benefits associated with an investment decision. A strong economy offers stable conditions for making a decision. Several factors in the ...