Discuss the Three Main Reasons Individuals Conform to Group Norms

question 184

Essay

Discuss the three main reasons individuals conform to group norms.

Understand and calculate the impact of refinancing a mortgage or loan at a lower interest rate.

Calculate the total amount of interest paid during a specific year of a loan’s term.

Understand the concept of Loan to Value Ratio and its calculation.

Calculate the impact of increased payment amounts on the amortization period of a loan.

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Definitions:

Rationing

Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated to those willing to give up the most “other things” in order to get it.

Scarcity

The essential economic dilemma revolves around the vastness of human aspirations contrasted with the limitations of available resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.