Decision Making

When making a decision there are many things that you must consider.  One is an opportunity cost. We must consider how much an opportunities costs/benefits you, because if its not worth it you are again wasting time and money. For example if you got a scholarship to play basketball on a college team and to take that opportunity you have to quit medical school, you have to weight out if this opportunity will benefit you in the long run or hurt you. Another factor that we use in decision making is marginal thinking. Marginal analysis is all about thinking about how you can benefit yourself the most when it comes to balancing out your money or time. For example, If I have to practice piano and study for 2 tests for the next day, I have to think on the margin about my priorities and how much time can I have to practice my piano without cutting into the time I need to study for my two tests. The cost of playing piano for another hour isn't worth me failing my history test because of the inadequate time to study. The 3rd economical concept when making a decision is looking at the "Trade-offs." Every decision we make has a consequence and we must decide if the cost of that consequence is higher than its benefit. For example, If I eat a huge slice of a delicious cake for my best friend's birthday, I have to determine if the taste of this cake is worth all the calories and fat that I will be gaining in the long run.