Understanding Decision Making Concepts

What role do personal values play in decision making?

• Personal values are irrelevant in professional settings.

• Personal values have no impact on decision making.

• Decisions are solely based on external influences, not personal beliefs.

• Personal values play a crucial role in shaping decisions by guiding priorities and aligning choices with individual beliefs.

How does opportunity cost affect our choices?

• Opportunity cost influences our choices by highlighting the trade-offs involved in decision-making.

• Opportunity cost guarantees the best outcome in every decision.

• Opportunity cost only applies to financial decisions.

• Opportunity cost is irrelevant in personal choices.

Define scarcity and its impact on resource allocation.

• Scarcity is the limited availability of resources, impacting resource allocation by necessitating prioritization and trade-offs.

• Scarcity is the equal distribution of resources to all individuals.

• Scarcity has no effect on how resources are distributed among individuals.

• Scarcity refers to an abundance of resources, leading to excess allocation.

What is the difference between needs and wants?

• Needs can be bought; wants cannot be purchased.

• Wants are always more important than needs.

• Needs are essential for survival; wants are non-essential desires.

• Needs are luxuries; wants are necessities.

How can advertising influence consumer behaviour?

• Advertising is solely about entertainment and not persuasion.

• Advertising influences consumer behavior by creating awareness, shaping perceptions, and prompting action.

• Advertising has no effect on brand loyalty.

• Advertising only increases prices for consumers.

What is primary research and how is it conducted?

• Primary research is only conducted through online databases and journals.

• Primary research is the same as secondary research, focusing on data analysis.

• Primary research involves analyzing existing data from previous studies.

• Primary research is the process of collecting original data directly from sources through methods like surveys, interviews, and observations.

Give an example of secondary research.

• Interviewing industry experts about trends

• Conducting a survey on consumer preferences

• Collecting data through direct observation

• Analyzing published academic articles on consumer behavior.

Why is understanding opportunity cost important in economics?

• Opportunity cost is irrelevant in making economic choices.

• Opportunity cost is the cost of the most expensive option available.

• Understanding opportunity cost is important because it guides decision-making by highlighting the value of the next best alternative.

• Understanding opportunity cost only applies to financial investments.

How do values shape our needs and wants?

• Values only affect our financial decisions.

• Values have no impact on our needs and wants.

• Values shape our needs and wants by determining our priorities and influencing our choices.

• Our needs and wants are solely based on external factors.

What are some common examples of scarcity in everyday life?

• Unlimited food supply, no traffic, endless energy

• Abundant resources, free time, excess money

• Limited time, insufficient money, shortages of natural resources.

• Plentiful job opportunities, infinite space, surplus water