Definition, Meaning & Synonyms

economic-decision-making

noun

ɪˈkɒnəmɪk ˌdɪsɪʒən ˈmeɪkɪŋ

Definition

The process of making choices regarding the allocation of resources in an economy, typically involving the weighing of costs and benefits to reach optimal outcomes.

Examples

The economic decision-making of a company determines its investment strategies.
In economic decision-making, consumers often compare prices to find the best deals.
Government policies can significantly influence economic decision-making at all levels.

Meaning

Economic decision-making refers to how individuals, firms, and governments choose to use their limited resources to manage scarcity and maximize utility or profit.