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 for heath, but also money.

The third point would be the Margin Changes. This is the balance between one extreme and another. It is the adjustment around the edge of what is being done. To put this to an example, instead of the people having the choice between eating an extremely high cholesterol meal and eating a vegetable meal they are given the mid-way option of eating the low-cholesterol products, which they will be refunded for.

As I stated before, the article did cover the main point in the 10 points of microeconomics. The first four are the ones I feel are more important. The human mind, terms of what we think, is, I find, extremely important in Economics. Since, without knowing human want we would be incapable of giving the human demand and need.