Micro 2

Question 1

5 processes of decision making

Answer 1

1. Who is the decision maker and what is the goal
2. Considerations before making decisions
3. Making the decision by weighing cost and benefits using marginalist principle
4. Impact of the decision(unintended and intended)
5. After the decision is made, the decision maker could review their decisions due to unachieved intended consequences and unintended consequences or a change in situation
   When seemed less optimal, they have to review the decision made

Question 2

Positive statement

Answer 2

Statement of fact

Testable statement

Question 3

Normative statement

Answer 3

Opinion or value judgement

Cannot be tested