Economics 8/27

Front 1

1. How are the economic questions of what to produce and how to produce decided in our economy?

Back 1

Consumer purchases, individual choice based on market economy

Front 2

2. Why are personal decisions important in a market economy

Back 2

Self motivated choice does the greatest good for society

Front 3

3. What is the guiding force behind individual decisions in a market economy?

Back 3

the invisible hand

Front 4

what is the effect of social choices on individuals

Back 4

affects whole society

Front 5

list the five steps in the decision-making model

Back 5

1. benefits and cost of a choice affect the whole society
2. benefits some part of society at the expense of all society
3. reduces the incentive of direct self-interest
4. from the view of productivity, they are generally not as effective as individual decision
5. choose the alternative that best meets the criteria you have chosen

Front 6

what two things should you do in order to clearly define a problem

Back 6

be objective, focus on the issue

Front 7

how do we choose alternatives

Back 7

limit your alternatives, be realistic

Front 8

how do we select criteria on which to base our decisions

Back 8

durability, acceptability to authoritative figures, other expenses, salvage trade in value

Front 9

how do we evaluate the alternatives based on our criteria

Back 9

decision matrix- a table showing comparisons of alternative decisions

Front 10

how can you get the most satisfaction from any personal decision you make

Back 10

best alternative