Articles Related To Principal Of Economic.pptx

1. Articles Related To Principal Of Economic
Submitted by
(Section E)
Name of student Roll no.
Rathod Dipak 44
Gaurav Sonkavde 53
Rana Kuldip 43
Naliyapara Nildeep 28
Narigara Divyesh 33

2. List of principle used for article :
• People face trade offs
• The cost of something is what you are give up to get it
• People respond to incentive
• Government can sometimes improve economic outcomes
• Prices rises when then government prints too much money

3. People Face Trade Offs
Trade-off : Higher protection/compliance vs. lower regulatory burden
• The trade-off
• One of the most high-profile trade-offs governments face involves regulatory
burdens. In the trade-off of higher protection or compliance vs. lower
regulatory burden, both objectives are desirable, but pursuit of one typically
comes at the expense of the other. “Which one to pursue?” is a debate we’ve
been having for decades.
•

4. • Breaking the trade-off
• Cutting regulatory burden and maintaining protections may seem like contradictory
objectives, but both can be achieved by making regulatory transactions (such as passing
inspection or demonstrating compliance) as painless as possible.
• By skillfully combining new digital technologies such as data analytics and crowdsourcing
with innovative techniques such as customer experience journey mapping, government
agencies could significantly cut red tape costs while maintaining protections. In effect,
this shifts the protection/burden trade-off as shown in figure

5. The Cost Of Something Is What You Are Give Up To
Get It
• Making decisions requires comparing the costs and benefits of alternative
choices.
• The opportunity cost of any item is whatever must be given up to obtain it.
It is the relevant cost for decision making.
The opportunity cost of state health insurance schemes
• Higher spending on public health insurance schemes, without increasing
overall healthcare budget, can sideline basic health care, suggests new
research.

6. • Large-scale government-sponsored health insurance schemes (GSHIs) such as
Ayushman Bharat are often heralded as the best way to address public health
issues. But are they fiscally feasible and optimal for improving health care in
India? A new National Institute of Public Finance and Policy paper by Mita
Choudhury and others shows how basic healthcare can suffer following the
introduction of GSHIs, especially in fiscally constrained situations.
• They show that spending on other important aspects of public health such as
primary and secondary healthcare (which includes rural healthcare centres)
fell. This, in turn, could result in more hospitalizations in the long run which
can increase the cost of insurance schemes.

7. People Respond To Incentive
• Incentive something that induces a person to act, i.e. the prospect of a
reward or punishment.
• Rational people respond to incentives.
Boat provided huge discount
• Boat is company who has got an collection of earphones, earbuds,
headphones and wireless speakers.
• In Croma store , boat started a discount offer to get new customers.
• Boat used to give discount those customer who shops about ten thousand and
more.

8. • There was Rs 500 off on their product (Headphone, Bluetooth
earphone)which was nearly about 35% discount.
• Like this there was more offer on their product according the price of product
and who can buy it.
• It was great marketing campaign for them because who ever buy mobile
phone from there, most of them grabbed this offer.
• This situation says, how people react on incentive.

9. Government can sometimes improve economic
outcomes
• Market failure when the market fails to allocate society’s resources
efficiently
Causes:
• Externalities, when the production or consumption
of a good affects bystanders (e.g. pollution)
• Market power, a single buyer or seller has substantial influence on
market price (e.g. monopoly)
• In such cases, public policy can promote efficiency.

10. Fiscal Policy
• Fiscal policy relies on the government’s powers of spending and taxation.
Both taxation and government spending can be used to reduce or increase
the total supply of money in the economy—the total amount, in other
words, that businesses and consumers have to spend. When the country is
in a recession, the appropriate policy is to increase spending, reduce taxes,
or both. Such expansionary actions will put more money in the hands of
businesses and consumers, encouraging businesses to expand and
consumers to buy more goods and services. When the economy is
experiencing inflation, the opposite policy is adopted: the government will
decrease spending or increase taxes, or both. Because such contractionary
measures reduce spending by businesses and consumers, prices come
down and inflation eases.

11. Prices Rises When Then Government Prints Too
Much Money
• When this happens, inflation and price rise in an economy.
Germany
• Perhaps the best-known example of hyperinflation, though not the worst case, is
that of Weimar Germany. In the period following World War I, Germany suffered
severe economic and political shocks, resulting in large part from the terms of the
Treaty of Versailles that ended the war. The treaty required payment of reparations
by the Germans through the Bank for International Settlements for the damage
caused by the war to the victorious countries. The terms of these reparation
payments made it practically impossible for Germany to meet the obligations, and
indeed, the country failed to make the payments.

12. • Prohibited from making payments in their own currency, the Germans had no
choice but to trade it for an acceptable "hard currency" at unfavorable rates. As
they printed more currency to make up the difference, the rates worsened, and
hyperinflation quickly took hold. At its height, hyperinflation in Weimar Germany
reached rates of more than 30,000% per month, causing prices to double every
few days.
• Some historic photos depict Germans burning cash to keep warm because it was
less expensive than using the cash to buy wood.

13. References
People face trade offs
Deloitte.com ( William D. Eggers, Amrita Datar, Bruce Chew)
The cost of something is what you are give up to get it
livemint.com (Sneha Alexander)
People respond to incentive
Employee (Rupesh Yadav)
Government can sometimes improve economic outcomes
Investopedia.com
Prices rises when then government prints too much money
Investopedia.com

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