Decision-making
Definition
Decision-making refers to the process of selecting among alternative courses of action. It involves evaluating different options based on their costs and benefits to make choices that maximize utility or achieve specific goals.
Analogy
Choosing what classes to take in high school is like decision-making. You have limited time and need to consider factors such as difficulty level, personal interests, and future career goals. By carefully weighing these factors, you can make informed decisions about which classes will benefit you the most.
Related terms
Marginal Analysis: Examining the costs and benefits of producing or consuming one additional unit of a good or service.
Rational Choice Theory: A framework that assumes individuals make decisions by comparing costs and benefits to maximize their well-being.
Trade-offs: Sacrifices made when choosing one option over another due to limited resources or conflicting objectives.
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