Dutch Insurer to Fight Flab with Margarine Subsidy
Dutch Insurer to Fight Flab with Margarine Subsidy
This article has touched I think on a few of the main points in “10 principles of Microeconomics”. By main I am implying the first four points. I do think that they are the main ones since they are the ones that involve the research into human psychology. The first one is “ Facing Tradeoffs”, the second one is “the Opportunity cost”, the third is “Marginal changes” and the fourth is “responding to incentives. These points will be further explained.
Facing Tradeoffs is something that every person must at one point in their lives go through, to summarize it, it would be; to get one thing we like, we have to give up on another thing we like. This can be seen in this article by the main point, the people are being asked to give up on nice creamy dairy products, something the average person likes, for health, also something the average person likes and wants.
The second point would be, Opportunity cost. This theory is basically the calculation of whatever must be given up to attain some item. In the case of this article the opportunity cost are the cholesterol products. They are being asked and to a certain extent they are being bribed to give that up in return