Question

• Describe how economics can improve decision making.
• Explain how decision making is influenced by lack of information and by the incentives available.
• Analyze common government interventions in terms of efficiency and incentives.

Please provide source

Answer 1

Q1. Economics can help us taking better decisions. This can be inferred from the following points:

a. Economics helps us to learn how market works, how demand and supply phenomena works. this helps us to take sound financial decision.

b. Economic principles of monetary economics helps us to learn various realm of financial world. How money is circulated in the system, how interest rate, stock market works and helps to increase our income.

c. Various sub division of economics which are evolving very fast like International economics, Agricultural Economics helps us to gain a better insights of various systems helping us to take better informed decisions.

d. Econometrics which is a very prominantly used sub field of economics help us to employ various models to generate better empirical results facilitating better decision making.