ECONOMICS

Detailed explanation-1: -DEFINE: The first step in making a decision or solving a problem is to define it. This first step is one of the most critical ones. You have to accurately and adequately define the constraints, the current operations, and the goals.

Detailed explanation-2: -To make a decision, you must first identify the problem you need to solve or the question you need to answer. Clearly define your decision. If you misidentify the problem to solve, or if the problem you’ve chosen is too broad, you’ll knock the decision train off the track before it even leaves the station.

Detailed explanation-3: -A problem is usually about something that has gone wrong (such as faults, gaps or difficulties). Whatever the cause, it can usually be traced to something in the near or distant past. Whereas decisions are about looking ahead. They are commitments to a course of action which is uncertain.

Detailed explanation-4: -Specify the problem – a first step to solving a problem is to identify it as specifically as possible. It involves evaluating the present state and determining how it differs from the goal state. Analyze the problem – analyzing the problem involves learning as much as you can about it.

Detailed explanation-5: -It’s important to understand the issue before you start thinking about potential solutions and decisions. Having a clearly defined problem can make it easier to make decisions later on in the process. Define or state your issue in as specific terms as possible so it’s easy to understand.