In today's economy, decision-making skills vary for each household; however, the ultimate goal of every individual is to get the most bang for their buck. To do this, there are 4 principles of individual decision-making: making compromises, evaluating what you give up to achieve your goal, thinking on the margin and responding to incentives. The first principle of individual decision-making faces a trade-off. For an individual to achieve their goals or obtain something they desire, they usually have to give up or exchange something to achieve it. In Chapter 1, Principles of Economics, efficiency versus equity is discussed, which helps explain this principle further. The company always seeks to get the most bang for its buck; get the best out of themselves. This is called efficiency. While trying to get the most out of our daily decisions, we must also consider fairness and ensure that the economic prosperity from our decisions is fairly distributed. The second principle goes hand in hand with the first. "Because people face compromises, mom...