Table of ContentsImpactDecisions and InfluenceAsymmetric InformationPolitical EconomyConclusionsConsumer choice is a major driving force in the factors influencing various outcomes regarding microeconomics. This is well known and many companies attempt to exploit this knowledge for profit, but it remains difficult to fully take into account tastes which can constitute the complexity of consumer choice. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayImpactIt is clear from numerous studies and surveys that consumer choice strongly dictates purchases and economic transactions. As demand for an item increases, often unrelated to cost (to a point), certain fads or trendy advertisements can convincingly convince the masses to purchase something that otherwise might be considered illogical. On the other side of the spectrum, low enough prices will entice consumers to buy something that may not be the best or healthiest option. As the price of an item falls, demand increases. But the consumer's choice is never so simple and precise, which is why many brands are favored over others, even if they are quite similar. Grocery store chains carry store brands that some consumers will never try, despite a lower price, due to aesthetics or the belief that the lower price makes the product inferior. In a very real way, although consumer choice drives the market, it is rarely orderly or logical, going in several directions at once and changing quite often. Decisions and influence Furthermore, wages can be pushed up by consumer choice. Professions are a lot like brands, as well as businesses within those professions; Not all are considered equal by consumers, and switching to any of them will cause associated wages to rise and those of neglected companies to fall. Another facet of this problem concerns interest rates: as more people choose a recreational activity that is higher risk than others, the overall rate for consumers of those affected businesses will increase accordingly. This does not necessarily correspond to the direct danger level of that activity, but simply to the fact that the more people doing a given activity, regardless of its safety margin, the more people will be injured. An interesting facet of consumer choice concerns overall health, particularly as it relates to consumer goods. “It stands to reason that these consumers' food choices would be affected by an erroneous belief in the nutritional content of a particular item, as this would affect how they prioritize their food consumption preferences. » Asymmetric Information Critical to understanding the precariousness of the vast majority of economic systems currently in place fully realize the importance of asymmetric information, particularly with regard to lending and borrowing which constitutes a large part of economic infrastructure. It is inconceivable that all of the accounting and auditing operations carried out at a given moment of the transaction can be followed, especially if we consider that a large number of goods are divisible and non-storable. “….institutions such as commodity money, credit and record keeping cannot be used to facilitate trade, leaving fiat money as the only means..