Essential Questions for Rational decision- making • Why should people weigh the advantages and disadvantages of different alternatives when making decisions? • What does it mean to be rational? • What methods can we use to help us make our choices more rationally? • How does self-interest influence human decision-making?
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Essential Questions for Rational decision-making Why should people weigh the advantages and disadvantages of different alternatives when making decisions?
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Essential Questions for Rational decision-making
• Why should people weigh the advantages and disadvantages of different alternatives when making decisions?
• What does it mean to be rational?• What methods can we use to help us make
our choices more rationally?• How does self-interest influence human
decision-making?
Trade-offs
• Exchanging one thing for the use of another is called a trade-off
• Trade-offs involve opportunity costs, or the loss of one alternative when you choose another
• Opportunity cost by definition is the value of the next best choice
• Considering the opportunity cost can help people make decisions