Buying a new home can either be an exciting experience in someone's life or a major problem with serious consequences. I was fortunate to get a home through a VA loan, and the process was a little easier because I didn't have to do the majority of the tasks on my own. I advise all my friends and family, or anyone looking to buy a home, to consider many factors before making this decision. Economic principles play a vital role in the decision-making process when purchasing a home. At the time, when I bought my house, I didn't know this, but now that I know more about economic principles, I realized that I was doing all of these steps unintentionally. Overall, purchasing my home was a big decision, and I know I realize the consequences of not considering factors like economics, marginal cost, and benefits, or even the right timing between supply and demand. Principles of Economics The principles of economics are what consumers use regularly when it comes to commerce, costs, products and services. This relates to my purchasing decision when I purchased my home as all principles need to be considered. For example, here's how to consider that people are faced with trade-offs. This principle consists of giving up something else to obtain one thing. In this particular case, I sold one of my vehicles to help me make the down payment on my house. For me, this represented a sacrifice. Another principle that applied to me was that the cost of something is what you give up to get it. I thought buying and selling my vehicle was a bold sacrifice, but I really wanted a home, so I sold my vehicle so my family and I could have more space and better living conditions. Finally, the principle that people respond... middle of paper... to purchase any item, and if done at the right time, can produce great results. One thing I learned from taking this economics course is that economics is the brain of the world. This is how investors get rich, businesses profit, and consumers can buy the products and services they deserve. A great economy provides more opportunities to make better purchasing decisions. Works Cited Investopedia. (2011). Marginal profit and marginal cost. Retrieved from http://www.investopedia.com/study-guide/cfa-exam/level-1/micronomics/cfa5.aspMarginal costs and benefits. Goldline International, March 29, 2008. Web. March 6, 2011. .Shah, A. (January 2, 2011). In Commerce, Economics and Related Issues. Accessed March 6, 2011 from http://www.globalissues.org/issue/1/trade-economy-rated-issues