It is always said that if you have successfully made huge decisions in life, then you are capable of making economic decisions as well. Economic Decision Making is a book that will help you in all aspects of life. This book is written by Pearson, who is a well-known politician as well as a diplomat and whose work rules the education sector. It is not an easy task to make decisions that can make an impact on your future as well as the future of people related to you. However, people need to learn the art of Economic Decision Making because it has numerous benefits. It is obvious from the name that Economic Decision Making involves decisions related to your finances. To make judicious economic decisions, one must be well versed with the concept of Microeconomics. It is essential to follow the traditional as well as an ancient recipe that involves relevance as well as reliability. Without these two, Economic Decision Making seems impossible. It won’t be long-lasting. There are various important things discussed in the book that explain Economic Decision Making. Certain ideal steps have been mentioned.
Factors Involved In Economic Decision Making
According to Pearson in Economic Decision Making, there are two factors involved:
- External Factors- The external factors that lead to Economic Decision Making are bankers, customers, investors, vendors. They make external decisions about a firm. These have the invoice, loans, shares, etc.
- Internal Factors- The internal factors that lead to Economic Decision Making are marketing, accounting, production, personnel. They make internal decisions for the firm. These have sales campaigns, financial information, who to hire, etc.
Seven Steps Involved in Economic Decision Making
- Identification of your goal: This is one of the most important steps. Hearing this step might feel like it is easy, but even when you have reached the end, you will keep coming back to this one. Your goal must be something like to upgrade, to achieve, etc.
- Collection of relevant information: If you are planning on gaining information from only one source, then this step might seem easier to you, but it won’t be a good choice. Look for information from a different site and different people. Personalized information is essential.
- Identification of alternatives as well as consequences: The more information you collect, the more alternatives you will come across. This will further lead to varied consequences. So, be very particular in this step while Economic Decision Making.
- Review the evidence: This step is all about asking you to take some time off and cool down. Working yourself up won’t give any solutions, so make sure that you cool down and then again come back to reviewing the evidence.
- Make your financial decision: In Economic Decision Making, you must decide for yourself. So, go back again and make your decision by keeping in mind all the points mentioned earlier.
- Implementation of the decision: Now you have finally taken your decision. So, now is the time to give life to your hard work. Make sure that you tell everyone concerned about your decision.
- Review your decision: This is the last step of Economic Decision Making. You might think of skipping this step, but it is not the best idea to do so. This is an essential step as it will help you in locating the cons as well.
To recapitulate, Economic Decision Making is a book which will give you a proper insight on everything. It will make your thoughts and point of view clear on Economic Decision Making.