Book Review Book Review Macroeconomics 3rd Edition The most important lesson from this book is the economic model of trade-off. As an economist, I would like to point out that trade-off is a very crucial concept in business. As Paul Krugman and Robin Wells exclaim, it can determine the success or failure of any investment. The chapter convinces me that it applies the principle of opportunity cost which of course, plays a significant role in the decision-making process. This applies both at personal, corporate or national level (Blanchard, O., 2000).
I would like to say that the explanations given by these authors can be of great help to me. In my own capacity as an up coming entrepreneur, I would like to assert that it imparts decision-making skills on me. It enables me to understand the role of prioritization in business. Even if there may be lots of alternative opportunities to explore, these writers convince me that it is better to forgo many options and settle on the best alternative.
Such a skill can help me to understand my business environment, analyze the available resources before coming up with a well-thought investment to venture into. This is recommended because it is the most absolute way to ensure that I choose the most viable business which will not only make profits, but withstand the stiff competition in the market and expand in the long run (Blanchard, O.,2000). In conclusion, trade-off is paramount in the making of decision regarding any business. It imparts evaluation, managerial and creative skills necessary for the management of any business.
Blanchard, O. (2000) Macroeconomics. Upper Saddle River: Prentice Hall.