Question

what are types of economic and non economic decisions?

Answer 1

Economic decisions :-

These are the decisions in which people have to choose what to do at the condition of scarcity. Scarcity occurs because people have unlimited wants but have limited resources with which to fulfill these wants. This means that the people have to make economic decisions because they want more things that they can actually get. Therefore, they have to choose between various options.

An individual person has to make economic decisions. An individual have to take economic decisions while spending their personal resources for any luxurious. Example an individual has to take economic decision before purchasing a new mobile whether he wants to purchase a mobile or keep his old mobile for future use.

Families have to make essentially same kind of decisions. A family has to decide how many clothes that that children need they have to decide how often they can go to vacation.

Countries or country governments have to take big decisions. they have to decide what level of taxation has to be imposed on various economic activities in the country. They have to decide how much they have to spend on military as opposite to domestic programs. They have to decide what economic activities have to be subsidized.

All these decisions are to be taken because the people have more wants then and what they can afford with available resources.

Non economic decisions :-

These are the decisions which is exactly opposite to the economic decisions.

Non economic decisions make get losses for the person who take those type of decisions.

A person is in a situation where the available resources are greater than the wants he need. In that situation due to circular resources available to him he will invest all his resources to satisfy his all wants but the person did not think which wants are very much useful to him and which ones are less beneficial to him.

Investing available resources in less beneficial wants leads to non economic results.

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