Explain the economic thinking rests

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-Charles E. Phelps (2010) maintains that "economic thinking rests fundamentally on the premise that consumers make choices to maximize their utility [a measure of satisfaction], limited by the amounts of goods that the consumer's income can purchase". Can you relate to that on a personal level? Consider three different scenarios when deciding how much money you would spend on a summer vacation.

-You have limited funds and stay close to home

-You have saved throughout the year to allow you to go on a pleasing (but not dream) vacation.

-Money is no option for your dream vacation

Reference no: EM133082261

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