This document provides an overview of key economic concepts including:
(1) Economics is the study of how societies use scarce resources efficiently; (2) Scarcity and efficiency are the central themes as resources are limited but wants are unlimited; (3) The production possibility frontier (PPF) shows the maximum output combinations an economy can produce given scarce resources.
introduction , meaning ,terminology, economic efficiency ,model of efficiency,type of efficiency ,sufficient condition ,key concepts,monopoly and allocative inefficiency ,failure of efficiency ,key concept, summary etc.
introduction , meaning ,terminology, economic efficiency ,model of efficiency,type of efficiency ,sufficient condition ,key concepts,monopoly and allocative inefficiency ,failure of efficiency ,key concept, summary etc.
Students should be able to:
Understand the distinction between normal and supernormal profit
Explain and illustrate the concept of profit maximisation using marginal cost and marginal revenue
CA NOTES ON NATURE AND SCOPE OF BUSINESS ECONOMICS
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HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
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Students should be able to:
Understand the distinction between normal and supernormal profit
Explain and illustrate the concept of profit maximisation using marginal cost and marginal revenue
CA NOTES ON NATURE AND SCOPE OF BUSINESS ECONOMICS
FREE AFFIDAVITS AND NOTICES FORMATS
FREE AGREEMENTS AND CONTRACTS FORMATS
FREE LLB LAW NOTES
FREE CA ICWA NOTES
FREE LLB LAW FIRST SEM NOTES
FREE LLB LAW SECOND SEM NOTES
FREE LLB LAW THIRD SEM NOTES
FREE LLB LAW FOURTH SEM NOTES
FREE LLB LAW FIFTH SEM NOTES
FREE LLB LAW SIXTH SEM NOTES
FREE CA ICWA FOUNDATION NOTES
FREE CA ICWA INTERMEDIATE NOTES
FREE CA ICWA FINAL NOTES
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
Price elasticity is a crucial concept in economicsSAINATHYADAV11
Price elasticity is a crucial concept in economics that measures the responsiveness of quantity demanded or supplied to changes in price. Understanding price elasticity is vital for businesses, policymakers, and economists as it helps predict the impact of price changes on market behavior and revenue. Here's why price elasticity is important:
1. Determining Revenue Impact: Price elasticity helps businesses predict how changes in price will affect their total revenue. If demand is elastic (responsive to price changes), decreasing prices may lead to higher revenue. Conversely, if demand is inelastic (insensitive to price changes), increasing prices may result in higher revenue.
2. Optimizing Pricing Strategies: Businesses can use price elasticity to determine the optimal pricing strategy for their products or services. By understanding the price sensitivity of consumers, companies can set prices that maximize profitability and market share.
3. Forecasting Market Behavior: Price elasticity provides insights into consumer behavior and market dynamics. It helps forecast how changes in prices, incomes, or competitor actions will impact demand and market equilibrium.
4. Policy Decision Making: Policymakers use price elasticity to design and evaluate economic policies, such as taxation, subsidies, and regulations. Understanding the elasticity of supply and demand helps assess the effectiveness and unintended consequences of policy interventions.
There are five cases of price elasticity of demand
A. Perfectly elastic demand:
When small change in price leads to an infinitely large change is quantity demand, it is called perfectly or infinitely elastic demand. In this case E=∞. Sometimes, even there is no change in the price, the demand changes in huge quantity. In case of perfect elastic demand, the demand for a commodity changes even though there is no change in price. This elasticity is very rarely found in practice. We can see a straight line demand curve parallel to the X axis
Ep = ((Q2 − Q1)/Q1) /((P2 − P1)/P1)
𝐸𝑝 = (1000 − 100)/100 /(10 − 10)/10 = ∞
The demand curve is horizontal straight line. It shows the at Rs. 10 price any quantity is demanded and if price increases, the consumer will not purchase the commodity.
B. Perfectly Inelastic Demand
A commodity is said to have perfectly inelastic demand, when even a large change in price of the commodity causes no change in the quantity demanded. The elasticity coefficient of perfectly in elastic demand is Ep = 0.
The shape of the demand curve for perfectly inelastic is vertical as shown below.
Price Demand
10 100
20 100
Ep = ((Q2 − Q1)/Q1) /((P2 − P1)/P1)
𝐸𝑝 = (100 − 100)/100 /(20 − 10)/10 = 0
When price increases from Rs. 10 to Rs.20, the quantity demanded remains the same. In other words the response of demand to a change in Price is nil. In this case ‗E‘=0.
C. Relatively elastic demand:
Demand changes more than proportionately to a change in price. i.e. a small change in price leads to
𐫱 This file is especially for engineering students.
This is 'economics for engineers'.
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Microeconomics: Introduction and basic conceptsPie GS
1.1 Meaning and definition of microeconomics
1.2 Basic microeconomic issues: scarcity, efficiency and
alternative uses of resources
1.3 Differences between microeconomics and macroeconomics
1.4 Opportunity cost, normative economics and positive
economics
1.5 Importance of microeconomics in business decision making
1.6 Economic models: meaning and use of economic models
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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Sectors of the Indian Economy - Class 10 Study Notes pdf
BA5101 Economic Analysis for Business-Unit 1
1. BA5101 - ECONOMIC ANALYSIS
FOR BUSINESS
Prepared By
Dr.M.Sankar, MBA.,M.Phil.,M.Sc(Psy).,Ph.D.
Associate Professor / Management Studies
2. The Central Concepts of Economics
Learning Objectives
This chapter provides an introduction for economics and its
concepts, through the following points:
(A) Why study economics?(what is economics?, what is the
economic problem?, and the common fallacies in economic logic)
(B) The problems of economic organization
(C) Societies’ technological possibilities(PPF and its
applications)
3. Why Study Economics?
In all your life, you will run up against the truths of
economics in decisions, like:
How to choose your occupation?
How to buy a home?
How to pay for your children’s education?
How to vote in elections But,
the question is what does economics mean.
4. What is Economics?
Economics includes many topics like:
The behavior of the financial markets,
The reasons why some people or countries have high
incomes while others are poor, international trade and
globalization, and the government policies used to achieve
economic goals.
However, economics can be defined as “the study of how
societies use scarce resources to produce valuable goods and
services and distribute them among different individuals”.
5. Theme of Economics
Scarcity and Efficiency
If all goods and services could be produced in infinite quantities, all
goods would be free (like sand and seawater) and all prices would be
zero. But, as a result of scarcity, most goods are economic. The
economic problem results from the scarcity of the resources available
for any society relative to its unlimited needs and wants. That is why
the Society must use its resources efficiently. So, the two twin
themes of economics are scarcity
and efficiency.
6. Count….
Scarcity “refers to a situation in which goods are limited
relative to desires”. Given unlimited wants, it is important for
an economy to make the best use of its limited resources. This
brings the notion of efficiency. Efficiency “means the most
effective use of a society’s resources in satisfying people’ s
wants and needs”. This means that the economy is producing
the highest combination of quantity and quality of goods and
services given its technology and scarce resources.
7. Count….
Economic efficiency
Economic efficiency is the measure of output obtained
with a given set of inputs, i.e. least amount of wastage.
Technological ability usually decides the upper limit for the
maximum efficiency which can be achieved.
8. The main economics problem
What to Produce (in which quantities?)
How to Produce?
For whom to Produce?
9. THE PRODUCTION-POSSIBILITY FRONTIER
The production-possibility frontier (PPF) is a bridge
which ties the three concepts. If we assume that the
economy produces just a couple of goods (guns and butter
are the default choices for economists, scary lot!), then the
economy can produce a greater quantity of guns only if it
reduces the quantity of butter produced. Each point on the
PPF curve shows the maximum possible output of an
economy (i.e. the potential that the economy holds).
10. PRODUCTIVE EFFICIENCY
This is defined as producing goods and services
for the lowest cost. Productive efficiency is said to
occur on the production possibility frontier. On the
PPF curve, it is impossible to produce more of one
good without producing less of another.
11.
12. Productive efficiency also involves producing at the lowest
point of the short run average cost curve (where MC cuts the
bottom of the SRAC curve.)
13. What Is Economic Efficiency
Economic efficiency is when all goods and
factors of production in an economy are
distributed or allocated to their most valuable
uses and waste is eliminated or minimized.
14. Economic Efficiency and Scarcity
The principles of economic efficiency are based
on the concept that resources are scarce. Therefore,
there are not sufficient resources to ensure that all
aspects of an economy function at their highest
capacity at all times. Instead, scarce resources must be
distributed to meet the needs of the economy in an
ideal way while also limiting the amount of waste
produced.
15. Efficiency in Production, Allocation, and Distribution
Productive firms seek to maximize their profits by
bringing in the most revenue while minimizing costs. To
do this, they choose the combination of inputs that
minimize their costs while producing as much output as
possible. By doing so, they operate efficiently; when all
firms in the economy do so, it is known as productive
efficiency.
16. What Is Economic Growth
Economic growth is an increase in the production
of economic goods and services, compared from one
period of time to another. It can be measured in
nominal or real (adjusted for inflation) terms.
Traditionally, aggregate economic growth is measured
in terms of gross national product (GNP) or gross
domestic product (GDP), although alternative metrics
are sometimes used.
17. Understanding Economic Growth
In simplest terms, economic growth refers to an
increase in aggregate production in an economy. Often,
but not necessarily, aggregate gains in production correlate
with increased average marginal productivity. That leads
to an increase in incomes, inspiring consumers to open up
their wallets and buy more, which means a higher
material quality of life or standard of living.
18. Macro Economics
macroeconomics, which is concerned with
how the overall economy works. It studies such
things as employment, gross domestic product,
and inflation—the stuff of news stories and
government policy debates. It Involves,
Reasons for inflation and unemployment.
Economic growth
International trade and globalisation
Reasons for differences in living standards and
economic growth between countries.
Government borrowing
19. Micro Economics
Microeconomics is the study of particular
markets, and segments of the economy. It looks
at issues such as consumer behaviour,
individual labour markets, and the theory of
firms.
Micro economics involves
Supply and demand in individual markets.
Individual consumer behaviour. e.g. Consumer
choice theory
Individual labour markets – e.g. demand for
labour, wage determination.
Externalities arising from production and
consumption. e.g. Externalities
21. Role of Government in Market Economy
Monetary Policy - Monetary policy refers to the actions
undertaken by a nation's central bank to control money
supply and achieve sustainable economic growth.
Fiscal Policy- Fiscal policy is the means by which a
government adjusts its spending levels and tax rates to
monitor and influence a nation's economy. It is the sister
strategy to monetary policy through which a central bank
influences a nation's money supply.