The purpose of economics is to provide a way to think. The process of economic thinking and decision-making conclude that a scarce item/service cannot be obtained without giving up something else. Consequently, we must make our decisions by comparing the costs and benefits, and evaluating the trade-offs. In doing so, five principles of economic thought come into play: trade-offs, incentives, opportunity costs, marginal thinking, and voluntary exchange. How do you apply any THREE of these five principles of economic thought in your everyday life. Explain with a specific example of each of the three principles.

full explained answer