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Economics Decision Making

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Economics Decision-Making Process

Economics Decision- Making Process According to (Anderson & Sweeney, 2000) managers and economists use the decision-making process to analyze economic models. Decision-making process involves selection of the best alternative from many choices. It involves setting goals to make decisions, assessing alternative occupations and gathering information. When analyzing economic models, managers and economists note that there are fundamental assumptions that every model relies on to remain valid. These assumptions are present in all decision circumstances. Everyone in the society, from the small business owner to the billionaire investing in the real estate to the teenager applying a job makes some economic decisions at some point. The basic assumptions are surrounding decision-making process always apply. The primary factors surrounding economic decision making include; maximizing value, working on a budget, cost benefits analysis and rational decision making. The process of making economic decisions is complex as that of consumer decision making. When making decisions, businesses derive most of the critical choices from macroeconomics data, any of the choice made could mean the failure or success of their enterprise. The accuracy, reliability and validity of the information the business uses are of great importance (Tremmel, 2008). My aim in this paper, therefore, is to discuss and identify any decision-making processes. I will also consider incentives of stakeholders and how concepts such as equity, externalities, and efficiency influence the economy. I will achieve this objective by analyzing the Yasuni case, “A tragedy of commons”. Before I delve into Yasuni initiative, “A tragedy of commons”, it will be better if I highlight the steps of the decision-making process. A decision process has about...

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