Final answer:
Problem solving is about applying solutions to specific issues, while decision making involves choosing among alternatives and can include cost/benefit analyses.
Step-by-step explanation:
Problem solving is focused on finding and applying solutions to specific issues, whereas decision making is focused on choosing among alternatives. The process of problem solving often involves three stages: strategy, solution, and significance. During these stages, individuals or groups identify the problem, develop potential strategies, and evaluate the significance of the potential solutions. Decision making, on the other hand, may involve conducting cost/benefit analyses to compare the potential sacrifices and gains of each option. This approach is fundamental in helping to make informed choices, especially when allocating limited resources in various contexts, such as in governmental policy or business settings.