Economic agents Dq
- Why do economic agents need to make choices in the decision making process? What are the factors that force us to make choices among the viable alternatives at our disposal during a given period of time?
- Why do economic agents face tradeoff in our economic choices (economic decision making) process? How do we make a rational choice among the viable alternatives we have as individuals or business owners?
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Economic agents are the participants in the economy and include households, business firms and governments. The business firms should be the ones engaged in production, exchange and consumption of the products. The need for choice in decision making process is influenced by the needs. Since resources are scarce, there is a need to decide how to use them. Any company or organization is limited by its available resources. It is what separates the big companies from the small ones and it is the differentiating factor in making organizational decisions. The factors that force us to make…