what steps should you take to make a good economic decision

Question

I don't know this one 

Answer 1

To look at things economically, you should perform a cost benefit analysis:

 

Step 1: Define the problem/questions

Step 2: Define the pros (benefits) and cons (costs)

Step 3: Place numerical values on all pros and cons to compare apples to apples

Step 4: Add all costs and all benefits and see which is higher. Your decision will be made in this step.