The core question that has lain in the back throughout the semester was that of how and why people make decisions. As we learned new concepts, their uses, and significance, this question of decisions slowly becomes clearer. During the start of the unit, the best answer that I might have been able to give was that people make decisions as a reaction to something happening, e.g. the prices of a certain product drops dramatically. This is merely a small part of what we have learned so far in the semester. With new concepts to account for, concepts such as entrepreneurship; incentives; and market, we see that there is more than just a reaction when making decisions. In the case of entrepreneurship, an idea is taken and attempted to turn into a product. People who invest in that idea might invest because they think the idea could become a success, and that their investment will pay them back ten-fold in the future. Additionally, they might turn down the idea because they think is too big of a risk and might lose money. When we look at the market, we see two types of decisions being made by two types of people; producers and consumers. The producers have to decide what goods or services to produce, and the consumers decide what to buy. Essentially, these decisions are similar, as both producers and consumers takes whatever road would benefit them the most. A consumer looks to buy products that are worth more than their price. A producer looks to gain as high a profit as possible by selling as many products for as high as possible without wasting resources.

In the beginning, we see the process of decision making as a simple and blunt process, in which you make a decision to make something happen. Now we see that many factors come into play, and we see a more sophisticated process in which people take risks while taking different factors into consideration before making such decisions.

 

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