economicslearner-blog

[economicslearner-blog]

I feel like I hadn't paid the attention it deserves to the idea of trade-offs. I thought that what you give up for something in return was just the money for example (or whatever you are giving up at that especific moment); I was not thinking about the time that you put in at work to get that money or the things you could've done with that time if you weren't working, for example spending some quality time with your family.

Also the idea that incentives can sometimes affect in a contrary way that you thought caught my attention. For example the seat belt rules, we se in the book how it did reduced driver deaths but increased the number of pedestrian deaths. I feel like sometimes we do not consider all of the autcomes an incentive could cause, or we just cannot predict how people's reaction to it is going to be. This made me think about taxes.

And a question came up in my mind and I started wondering, what would happen if the government starts reducing taxes... Would the people be motivated to work more to make more money, and also spend more money and in this way contribute to the money flow in the country and increase the economy? Or would it have a negative effect?