People make decisions every day. Whether it includes what clothes to wear, where to shop, or what restaurant to go to, people make decisions based on the situation and the alternatives presented. But how are effective decisions made? Key methods play a part in effective decision making. Certain items motivate people to make certain decisions, such as people choosing a job because it has higher pay. Others make decisions based on psyche income, or certain satisfaction of making a decision. The following discusses how effective decision making can happen, and how it benefits society.

People make decisions at times largely based on incentives. For instance, when a person becomes accepted at two jobs, he/she can look at both jobs, see the one job has higher pay then the other, and then choose that job over the other. Other people make decisions based on how it contributes to society. A person could decide to become a psychologist because they assist people with their problems. Or someone may decide to be a tax agent because they feel doing peoples taxes help the government. At times, it may be a matter of rising above ones potentialexcelling in a particular field or other quality. No matter what the reason, people make decisions based on different incentives.

Effective decision making involves a set of steps. First, one should assess the situation. Evaluate how the situation developed, and how it progressed. Then the alternatives of how to solve or make a decision needs to be looked at. Look at each option then find the best out of the list of options presented. Then make the final decision after thoroughly looking at the situation.

The progress of the economy becomes based mostly on the decisions of society. The U.S. Congress has people paying taxes to pay for Social Security, government programs, and environmental improvement, such as roads, schools, or other publicly used services or facilitities. If the U.S. did not have taxes, or did not share in the cost of such services, then the existence of such services becomes impossible because of the high cost involved. The average working citizen could not pay for a highway or repair an entire school. The cost demands go above the income that the individual makes. Therefore, sharing the cost benefits everyone since it helps improve public services, and makes the economy run smoother.

So society improves by individual and social decision-making. People make choices based on incentives and the situation involved. The sharing of costs by society improves living by contribution, therefore making it possible for programs to be available, necessary repairs being made, and necessary new establishments being built. Effective decision-making makes it possible for tasks to be performed effectively, and making ones life easier. Decision-making as a society assists society in advancing economically and assisting those in other countries to improve their economies.