Saturday, July 21, 2018

Rational People Think at the Margin.

Economists normally assume that people are rational. Rational people are the one who systematically and purposefully do the best they can to achieve the objective.

Decision in life are rarely black and white, but usually involves shades of grey. In most situations, people make the best decision by thinking at margin. Margin refers to a small incremental adjustment to a plan of action
For example: Start up requires lots of Important decisions to make and only Rational people can think at Margin. So Rational decision is required to make the plan successful.

For example : Economy's important decisions are taken by Economist who are  Rational. That's Economy is stepping towards the path of Development.

In 1991,LPG( Liberalisation Privatisation Globalization)  by then Finance Minister Mr. Manmohan Singh is considered as one of the most successful Strategy for the Indian Economy. 

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