By Arthur Lalanne Kimball
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As another example, here is a case study about the popularity of vending machines in Japan. © Paul Chesley/Stone/Getty Images A Yen for Vending Machines Japan faces a steady drop in the number of working-age people. Here are three reasons why: (1) Japan’s birthrate has reached a record low, (2) Japan allows virtually no immigration—only 2 of every 1,000 workers in Japan are foreigners, and (3) Japan’s population is aging. As a result, unemployment has usually been lower in Japan than in other countries.
An economic question is: Why does Adobe give its Reader away free? A key economic assumption is that individuals, in making choices, rationally select alternatives they perceive to be in their best interests. By rational, economists mean simply that people try to make the best choices they can, given the available information. They simply select the alternatives they expect will yield the most satisfaction and happiness. In general, rational selfinterest means that individuals try to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit.
M. 1). In Asia some people burn money to soothe the passage of a departed loved one. The notion of self-interest does not rule out concern for others; it simply means that concern for others is influenced by the same economic forces that affect other economic choices. The lower the personal cost of helping others, the more help we offer. Choice Requires Time and Information Rational choice takes time and requires information, but time and information are scarce and valuable. Talk to a corporate official deciding whether to introduce a new product, sell over the Internet, build a new factory, or buy another firm.
A college textbook of physics by Arthur Lalanne Kimball