This document provides an overview of microeconomics concepts including:
1. Definitions of economics from various sources emphasizing scarcity and choice.
2. The three basic economic problems of what, how, and for whom to produce as well as other problems like efficiency and growth.
3. Types of economies including centrally planned, market, and mixed and their key characteristics.
4. Positive and normative economics and deductive and inductive methods of analysis.
5. Consumer behavior theory including utility, budget constraints, indifference curves, and equilibrium.
Introduction to Managerial Economics, What is Business Economics, Definition,SCOPE OF ECONOMICS, Scope of BE in Managerial Decision Making, Role of business economics,Comparing Business Economics And Economics, Relevance of Business Economics, Factors of Production, CENTRAL PROBLEMS OF AN ECONOMY OR BASIC ECONOMIC PROBLEMS
Definition Nature Scope and Significance of Economics, Business Economics - D...Divyansh Agrawal
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Definition Nature Scope and Significance of Economics, Wealth Definition, Welfare Definition, Criticism, Scope of Economics, Economics a science or an artScience teaches us to know and an art teaches us to do. Science and art are complementary to each other, A Positive or a Normative Science, Business Economics,Methodology of Economics, Nature of Business Economics, Scope of Business Economics, Divyansh Agrawal, Divyansh Agrawal Shivpuri, PIMR, Prestige Institute of Management, Indore
CA NOTES ON NATURE AND SCOPE OF BUSINESS ECONOMICS
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This video focuses on the introduction to Economics, economic problems and opportunity cost and discuss definitions of economics given by Adam Smith, Marshall, Prof. Robbins and Paul Samuelson. This video also cover the subject matter of economics which includes nature of economics, relationship of economics with other sciences and limitations of economics and methods of economic analysis which includes inductive method and deductive method.
Introduction to Managerial Economics, What is Business Economics, Definition,SCOPE OF ECONOMICS, Scope of BE in Managerial Decision Making, Role of business economics,Comparing Business Economics And Economics, Relevance of Business Economics, Factors of Production, CENTRAL PROBLEMS OF AN ECONOMY OR BASIC ECONOMIC PROBLEMS
Definition Nature Scope and Significance of Economics, Business Economics - D...Divyansh Agrawal
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Definition Nature Scope and Significance of Economics, Wealth Definition, Welfare Definition, Criticism, Scope of Economics, Economics a science or an artScience teaches us to know and an art teaches us to do. Science and art are complementary to each other, A Positive or a Normative Science, Business Economics,Methodology of Economics, Nature of Business Economics, Scope of Business Economics, Divyansh Agrawal, Divyansh Agrawal Shivpuri, PIMR, Prestige Institute of Management, Indore
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/
This video focuses on the introduction to Economics, economic problems and opportunity cost and discuss definitions of economics given by Adam Smith, Marshall, Prof. Robbins and Paul Samuelson. This video also cover the subject matter of economics which includes nature of economics, relationship of economics with other sciences and limitations of economics and methods of economic analysis which includes inductive method and deductive method.
Maddali Laxmi Swetha, MBA (HR)
Email ID: Maddali_swetha@yahoo.com
My Twitter ID: https://twitter.com/maddali_swetha
My Quora: https://www.quora.com/profile/Maddali-Swetha
My LinkedIn: https://www.linkedin.com/in/maddali-swetha-a0a424a6
My Blog (Maddali Swetha Blog): http://maddaliswetha.blogspot.com/
My Slideshare Papers: https://www.slideshare.net/MaddaliSwetha
Lecture slides for an undergraduate course on Basic Macroeconomics that I taught in the Fall of 2007.
This first lecture serves as an introduction to economics in general.
Static, Dynamic and Comparative Static EconomicsBikash Kumar
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Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Rabbi
Mehedi
Sadia
Rafia
Tuhin
HELLOW FRENDS IAM BACK WITH MY SECOND PPT.IN THIS PPT YOU WILL GET DETAILED EXPLANATION OF THE TOPICS AND YOU WILL DEFINATELY UNDERSTAND IT CLEARY.THIS IS UPDATED PPT AND ACCORDING TO NEW SYLLABUS.IF ANY QUERY PLZ CONTACT ME ON MY PHONE NO.9780529658.I HOPE YOU WILL BE FEEL IT GOOD.
introduction to economics and microeconomicsSatya P. Joshi
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Introduction to economics and microeconomics, microeconomics features and types and uses of microeconomics.
What is economics?
The study of how individual and society choose to utilize scare resources to satisfy unlimited human wants.
These wants encompass all goods and services that individual desire, including food clothing, shelter and anything else that enhance the quality of life.
[1] - http://www.ansmachine.net/
[2] - http://www.newtutorialslab.com/
Maddali Laxmi Swetha, MBA (HR)
Email ID: Maddali_swetha@yahoo.com
My Twitter ID: https://twitter.com/maddali_swetha
My Quora: https://www.quora.com/profile/Maddali-Swetha
My LinkedIn: https://www.linkedin.com/in/maddali-swetha-a0a424a6
My Blog (Maddali Swetha Blog): http://maddaliswetha.blogspot.com/
My Slideshare Papers: https://www.slideshare.net/MaddaliSwetha
Lecture slides for an undergraduate course on Basic Macroeconomics that I taught in the Fall of 2007.
This first lecture serves as an introduction to economics in general.
Static, Dynamic and Comparative Static EconomicsBikash Kumar
Â
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Rabbi
Mehedi
Sadia
Rafia
Tuhin
HELLOW FRENDS IAM BACK WITH MY SECOND PPT.IN THIS PPT YOU WILL GET DETAILED EXPLANATION OF THE TOPICS AND YOU WILL DEFINATELY UNDERSTAND IT CLEARY.THIS IS UPDATED PPT AND ACCORDING TO NEW SYLLABUS.IF ANY QUERY PLZ CONTACT ME ON MY PHONE NO.9780529658.I HOPE YOU WILL BE FEEL IT GOOD.
introduction to economics and microeconomicsSatya P. Joshi
Â
Introduction to economics and microeconomics, microeconomics features and types and uses of microeconomics.
What is economics?
The study of how individual and society choose to utilize scare resources to satisfy unlimited human wants.
These wants encompass all goods and services that individual desire, including food clothing, shelter and anything else that enhance the quality of life.
[1] - http://www.ansmachine.net/
[2] - http://www.newtutorialslab.com/
Š2016 Pearson Education, Inc. Chapter 1 The Nature of E.docxoswald1horne84988
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Š2016 Pearson Education, Inc.
Chapter 1
The Nature of Economics
ďŽ Overview
This chapter introduces economics as a science. Economics is defined, and its subareas, macroeconomics
and microeconomics, are introduced. The chapter also discusses the three fundamental questions faced by
every nation of what to produce, how to produce, and for whom to produce. The chapter then presents the
two types of economic systems, command and control or the price system, used to answer the three
fundamental questions. Economic rationality and self-interest are discussed along with their implications
for decision making and economic model building. The concept of behavioral economics is introduced.
Economics as a science is closely associated with the development of models. To aid understanding, a
significant section on the methodology of economics discusses model construction, the role of
assumptions, and determining the usefulness of a model. Finally, the difference between positive and
normative economics is presented. There is a discussion of why it is important to separate these two areas
of analysis clearly.
ďŽ Learning Objectives
After studying this chapter, students should be able to:
ďˇ 1.1 Define economics and discuss the difference between microeconomics and macroeconomics
ďˇ 1.2 Identify the three basic economic questions and the two opposing sets of answers
ďˇ 1.3 Evaluate the role that rational self-interest plays in economic analysis
ďˇ 1.4 Explain why economics is a science
ďˇ 1.5 Distinguish between positive and normative economics
ďŽ Outline
I. The Power of Economic Analysis: The analytical framework of the course is the economic way of
thinking. The economic way of thinking permits the student to reach informed conclusions about
what is happening in the world.
A. Defining Economics: The study of how people allocate their limited resources to satisfy their
unlimited wants. The ultimate purpose of economics is to explain how people make choices.
B. Microeconomics versus Macroeconomics: Economics is divided into two types of analysis:
macroeconomics and microeconomics.
1. Microeconomics: The part of economic analysis that studies individual decision making
undertaken by individuals (or households) and by firms.
2 Miller ⢠Economics Today, Eighteenth Edition
Š2016 Pearson Education, Inc.
2. Macroeconomics: The part of economic analysis that studies the behavior of the economy
as a whole. It deals with economywide phenomena such as changes in unemployment, the
general price level, and national income.
II. The Three Basic Economic Questions and Two Opposing Sets of Answers: Every nation must
address three fundamental questions that concern the problem of how an economic system allocates a
societyâs scarce resources.
A. The Three Basic Questions: (1) What will be produced? (2) How will items be produced?
(3) For whom will it be produced?
B. Two Opposing Sets of A.
Welfare economics is the study of how the allocation of
resources and goods affects social welfare. This relates directly
to the study of economic efficiency and income distribution, as
well as how these two factors affect the overall well-being of
people in the economy. In practical terms, welfare economists
seek to provide tools to guide public policy to achieve beneficial
social and economic outcomes for all of society. However,
welfare economics is a subjective study that depends heavily on
chosen assumptions regarding how welfare can be defined,
measured, and compared for individuals and society as a
whole.
Economics for Beginners: Understanding the Basics of the EconomySSE Pune
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The economy is a complex and constantly evolving system that affects our daily lives. Therefore, it is essential to understand how it works to make informed decisions about personal finances, investments, and government policies.
Whether students are interested in pursuing careers in finance, business, or public policy or simply want to understand the world around them, studying economics at any of the top economics institutes in India is a great choice.
how to sell pi coins at high rate quickly.DOT TECH
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Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Â
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
Â
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. đ I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Â
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
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Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the worldâs largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
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The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can I sell pi coins after successfully completing KYCDOT TECH
Â
Pi coins is not launched yet in any exchange đą this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAYÂ you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers âĽď¸
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
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financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
⢠The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
⢠The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
⢠The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
⢠Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and assetâs value is determined by companyâs performance. There are two major types of equity securities: common stock and preferred stock.
ď Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the companyâs board of director or the business decisions to be made.
ď Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for companyâs growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
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USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
Â
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
2. ECONOMICS
From the Greek words Oikos meaning household
and nomos meaning management
= Household management
The wise production and use of wealth to meet
the demands or needs of the people
3. ď§ Paul Samuelson (Economics)
âthe study of how people and society end up choosing, with or
without use of money, to employ scarce resources that could
have alternative uses to produce various commodities among
various persons and groups in society.â
ď§ Roger Le Roy Miller (Economics, Today and Tomorrow)
âEconomics concerns situations in which choices must be
made about how to use limited resources, when to use them
and for what purposes. Resources can be defined as the things
people use to make the commodities they want.â
ď§ Hall and Loeberman (Macroeconomics: Principles and
Applications)
âThe study of choice under the condition of scarcityâ
4. ď§ Bernardo Villegas (Guide to Economics for Filipinos)
âA social science that studies and seeks to
allocate scarce human and non-human resources
among alternatives in order to satisfy unlimited
human wants and desires.â
ď§ Gerardo Sicat (Economics)
âa scientific study which deals with how individuals and
society make choices,â
Conclusion
ECONOMICS â is a social science that deals with how people
organize themselves in order to allocate scarce resources in
order to produce goods and services that will satisfy the
unlimited and multiplying wants and needs of man.
5. ďś Scarcity- a situation wherein the amount of something
available is insufficient to satisfy the desire for it.
ďś Resources-The labor, capital, land and natural
resources and entrepreneurship that are used to
produce goods and services.
ďś Unlimited â without limits, infinite
ďś Wants âdesires
6. ďąProduction is the use of inputs to produce outputs
ďą Inputs are commodities or services that are used to
produce goods and services
ďą Outputs are the different goods and services
which come out of production process.
Economics is concerned with
production
7. ď§ Economics is concerned with DISTRIBUTION
Distribution is the allocation of the total product among members
of society. It is related to the problem of for whom goods and
services are to be produced.
ď§ Economics is concerned with CONSUMPTION
Consumption is the use of a good or service. Consumption is the
ultimate end of economic activity. When there is no consumption,
there will be no need for production and distribution.
ď§ Economics deals with PUBLIC FINANCE
Public Finance is concerned with government expenditures and
revenues. Economics studies how the government raises money
through taxation and borrowing.
8. Basic problems of an Economy
If there was a perfect match between wants and resources, there would
have been no scarcity, no question of choice and no economic problem.
The problem of choices arising out of limited resources and unlimited
wants is called economic problem.
3 Fundamental Economic Problems.
ď What to produce?
500 guns or 500 tones of rice
ď How to produce?
Labor intensive technique or capital intensive technique
ď For whom to produce?
9. An economy faces other problems too..
1. The problem of economic efficiency.
2. The problem of full employment of
resources.
3. The problem of economic growth.
10. TYPES OF AN ECONOMY
1.CENTRALLY PLANNED ECONOMY:
This is type of an economy in which
government has high control and all the
decisions regarding what to produce,how to
produce,for whom to produce are taken by
government. The main motive of this economy
is to do social welfare
2.MARKET ECONOMY: This is an type of
economy in which government has notional or
very low control and all the decisions regarding
what to produce, how to produce , for whom to
produce are taken to maximize profit.
Centrally
planned
economy
11. 3.MIXED ECONOMY:This is type of an economy which has
moderate government control and in which major decisions like
what to produce,how to produce,for whom to produce are taken
jointly by the government and private and the main motive of this
economy is to do social welfare and as well as to maximize profits
12. CONTROLLED
ECONOMY
1.These economies have very
high government control.
2.The main motive of this
economy is social welfare.
3.Consumer is not soverign
in this economy.
4.Public sector dominate
the role.
MIXED
ECONOMY
1.These economies have
moderate government control.
2.The main motive of this
economy is to do both.
3.Consumer is
soverign in this
economy.
4.Private and public sector
dominate the role.
MARKET
ECONOMY
1.These economies have
notional government control.
2.The main motive of this
economy is to earn profit.
3.Consumer is
soverign in this
economy.
4.Private sector dominate
the role.
13. Positive Economics:
This is the type of economics which studies the economic
problems related to past,present and future.
The statements of these economics can be verified for truth
and are based on facts and figures.for example:On the eve
of independence indian poverty has great impact on
population than now.so this example is related to past and
it is also a positive statement.
Characteristics are,
1.Based on facts and figures.
2.Verified for truth.
ES
Positive and Normative Economics
14. Normative Economics :
This is the type of economics which merely study the opinions
of economists regarding economic problem. The statements of
normative economics cannot be verified for truth and are based
on value judgment. for example, poverty alleviation program
should make changes to eradicate poverty, so this is merely a
opinion of economists and it truth.
Characteristics are,
1. Based on value judgment.
2. Related to what ought to be.
ES
Positive and Normative Economics
15. Deductive and Inductive methods of
Economics
Deductive
⢠Also called analytical or
abstract prior method.
⢠Deduction means
inference and conclusions
from the general to the
particular or from the
universal to the
individual.
⢠This method is very
important to test theory or
hypothesis.
Inductive
⢠Also called empirical
method.
⢠Adapted by Historical
school of economics.
⢠Induction is the process of
reasoning from a part to
the whole, from particular
to general or from
individual to the
universal.
16. Deductive Method of Economic Analysis:
The deductive method is also named
as analytical, abstract or prior method. The deductive method
consists in deriving conclusions from general truths, takes few
general principles and applies them draw conclusions.
For instance, if we accept the general proposition that man is
entirely motivated by self-interest. In applying the deductive
method of economic analysis, we proceed from general to
particular.
The classical and neo-classical school of economists notably,
Ricardo, Senior, Cairnes, J.S. Mill, Malthus, Marshall, Pigou,
applied the deductive method in their economic investigations.
17. Steps of Deductive Method:
The main steps involved in deductive logic are as under:
(i) Perception of the problem to be inquired into: In the process of
deriving economic generalizations, the analyst must have a clear and precise
idea of the problem to be inquired into.
(ii) Defining of terms: The next step in this direction is to define clearly the
technical terms used analysis. Further, assumptions made for a theory
should also be precise.
(iii) Deducing hypothesis from the assumptions: The third step in
deriving generalizations is deducing hypothesis from the assumptions taken.
(iv) Testing of hypothesis: Before establishing laws or generalizations,
hypothesis should be verified through direct observations of events in the
rear world and through statistical methods. (Their inverse relationship
between price and quantity demanded of a good is a well established
generalization).
18. Inductive Method of Economic Analysis:
Inductive method which also called empirical method was adopted by the
âHistorical School of Economists". It involves the process of reasoning from
particular facts to general principle.
This method derives economic generalizations on the basis of (i) Experimentations
(ii) Observations and (iii) Statistical methods.
In this method, data is collected about a certain economic phenomenon. These are
systematically arranged and the general conclusions are drawn from them.
For example, we observe 200 persons in the market. We find that nearly 195
persons buy from the cheapest shops, Out of the 5 which remains, 4 persons buy
local products even at higher rate just to patronize their own products, while the
fifth is a fool. From this observation, we can easily draw conclusions that people
like to buy from a cheaper shop unless they are guided by patriotism or they are
devoid of commonsense.
19. Steps of Inductive Method:
The main steps involved in the application of inductive method
are:
(i) Observation.
(ii) Formation of hypothesis.
(iii) Generalization.
(iv) Verification.
20. Theory of Consumer Behavior
⢠Concept of utility Consumer - A consumer is one who buys
goods and services for satisfaction of his wants. Utility - The
want satisfying power of a commodity. Consumption Bundle -
An individual's consumption bundle is the collection of all the
goods and services consumed by that individual.
21. Consumer Budget
ď A budget constraint represents all the combinations of
goods and services that a consumer may purchase given
current prices within his or her given income.
ď Consumer Budget states the real income or purchasing
power of the consumer from which he can purchase certain
quantitative bundles of two goods at given price.
ď It means, a consumer can purchase only those combinations
(bundles) of goods, which cost less than or equal to his
income.
22. ⢠Budget Set A budget set or opportunity set includes
all possible consumption bundles that someone can
afford given the prices of goods and the person's
income level.
23. Budget Line Budget line is a graphical representation of
all possible combinations of two goods which can be
purchased with given income and prices, such that the
cost of each of these combinations is equal to the
money income of the consumer.
26. Indifference Curve Analysis
ďąAn indifference curve is the curve, which
represents all those combinations of two
commodities, which give same level of
satisfaction to a consumer.
ďąEach point on IC represent same level of
satisfaction. Properties of Indifference curve: It
slopes downward to the right.
ďąIt is convex to the origin. Two indifference can
never intersect. It never touches any axis. Higher
indifference curve shows higher satisfaction level.
27. Marginal Rate Of Substitution
⢠MRS refers to the rate at which the consumer substitute one
good to obtain one more unit of the other good.
⢠Key points about MRS:
⢠The slope of the Indifference curve is
MRS = Îy/Îx
â˘MRS is never constant, it varies over the IC.
â˘As we move along Indifference Curve,
MRS falls also called Diminishing Marginal rate of
substitution.
28. Consumerâs Equilibrium Using Indifference
Curve Analysis
⢠According to indifference Curve Analysis the
conditions required to achieve consumer equilibrium
are:
1. Where the slope of the indifference curve is equal to
the slope of budget line
MRSxy=Px/Py
Slope of IC = Slope of Budget line
2. The indifference curve must be convex to the origin
at the point of tangency.
29.
30. Approaches Of Utility Analysis
1. Cardinal Utility Approach: It was given by Alfred Marshall.
It refers to the measurement of utility in terms of numbers as
1,2,3, etc. The unit of measurement under this approach is
âutilsâ. Example: A basket of oranges offers 10 utils of utility
to a consumer.
2. Ordinal Utility Approach: It was given by Allen and Hicks. It
refers to the measurement of utility in terms of psychological
satisfaction and a consumer can just rank his preference from a
set of most preferred to least preferred bundles.
31. ⢠Cardinal Utility Analysis Cardinal utility has two concepts:
1. Total Utility 2. Marginal Utility
1. Total Utility: It refers to total satisfaction obtained from the
consumption of all possible units of a commodity.
TUn = U1+ U2+ U3 TUn = MU1+ MU2+ MU3 TUn = âMU
2. Marginal Utility (MU) : It is the additional utility derived from
the consumption of one more unit of the given commodity.
MUn = TUn â TUn-i MUn = Change in Total Utility/ Change
in number of units MUx = ÎTUx/ÎQx (When units do not change
in consecutive order)
32.
33. Law Of Diminishing Marginal Utility
⢠This law states that âas a consumer consumes more and more
units of a specific commodity, utility from the successive units
goes on diminishingâ
⢠Mr H. Gossen was the first to explain this law in 1854.
Assumptions Of LDMU: Rationality: Consumer aims at
maximum utility Constant MU of Money: MU of money for
purchasing goods remains constant Diminishing MU: Utility
falls from successive units Continuous Consumption: No time
gap Income : Income of a consumer remains the same
34. Demand is defined as the quantity of a commodity that a consumer
is willing and able to purchase in the market Keeping other factors
constant. Example: A consumer demands 5 kg of sugar in a month
at a price of Rs 40/ kg.
Demand can be classifies as:
Individual Demand: Demand of an individual person.
Market Demand: Demand of all the households.
Demand Analysis
35. The functional relationship between the demand for a commodity
and the factors affecting demand is termed as demand function.
There are 2 types of demand Function:
Individual Demand Function: It shows how demand for a
commodity in the market is related to its factors.
Dx= f(Px,Pr,Y,T,E)
Market Demand Function: It shows how market demand for a
commodity in the market is related to its determinants.
Dx= f(Px,Pr,Y,T,E,N,Dy,Pc)
Demand Function
36. Demand Function Symbols
Dx = Demand for commodity X
f = Functional relation
Px = Price of the commodity X
Pr = Price of related goods
Y = Consumersâ Income
T = Taste and preferences of consumer
E = Consumers expectation regarding goods
N = Population size
Dy = Distribution of income
Pc = Composition of population
37. Factors Affecting Demand
1)Price of the commodity[Px]
It means, as price increases, quantity demanded falls due to decrease in
the satisfaction level of consumers.
1)Income of the consumer[Y] Demand for a commodity is also
affected by income of the consumer. However, the effect of change in
income on demand depends on the nature of the commodity under
consideration.
i.If the given commodity is a normal good, then an increase in income
leads to rise in its demand, while a decrease in income reduces the
demand. Example, Full cream milk, grains, etc.
ii.If the given commodity is an inferior good, then an increase in
income reduces the demand, while a decrease in income leads to rise
in demand. Example, Poor quality food, coarse cereals, etc.
38. Factors Affecting Demand
3) Price of Related Goods [Pr] Demand for the
given commodity is also affected by change in prices
of the related goods.
Related goods are of two types: Substitute goods and
complementary goods.
i. Substitute Goods -Substitute goods are two goods that
could be used for the same purpose. If the price of one good
increases, then demand for the substitute is likely to rise.
Therefore, substitutes have a positive cross elasticity of
demand.
39. Factors Affecting Demand
ii. Complementary Goods: In economics, a
complementary good or complement is a good with a
negative cross elasticity of demand, in contrast to a
substitute good.
This means a good's demand is increased when the
price of another good is decreased. Conversely, the
demand for a good is decreased when the price of
another good is increased.
40. Factors Affecting Demand
4)Taste and Preferences[T] Tastes and preferences of
the consumer directly influence the demand for a
commodity. They include changes in fashion, customs,
habits, etc. If a commodity is in fashion or is preferred
by the consumers, then demand for such a commodity
rises.
5)Expectations [E] If the price of a certain commodity
is expected to increase in near future, then people will
buy more of that commodity than what they normally
buy. For example, if the price of petrol is expected to
rise in future, its present demand will increase.
41. Factors Affecting Demand
6)Distribution of Income [Dy] In case of equal
distribution, demand from all sections of society will
rise.
7)Size of Population [N] Higher population
implies greater market demand.
8)Composition of Population[Pc] If population of a
country has greater percentage of youth, then market
demand for branded clothes, bikes, etc rises.
44. Demand Schedule & Demand Curve
The tabular presentation of price and quantity demanded is
called demand schedule and a demand curve is the graphical
representation of the demand schedule.
Its is of two types:
1. Individual Demand Schedule and its Curve
2. Market Demand Schedule and its Curve
47. Law of Demand
The law of demand states that other factors being constant (cetris
peribus), price and quantity demand of any good and service are
inversely related to each other. When the price of a product
increases, the demand for the same product will fall.
48. Assumptions Of the Law of Demand
1. Taste and preferences of the consumers remain constant.
2. There is no change in the income of the consumers.
3. Prices of the related goods do not change.
4. No expectation of further changes in the supply of a
commodity.
5. No change in the distribution of income.
6. No change in population.
49. Exceptions to the Law of Demand
⢠Giffen Goods : A good where higher price causes an increase
in demand (reversing the usual law of demand). The increase in
demand is due to the income effect of the higher price
outweighing the substitution effect.
⢠The idea is that if you are very poor and the price of your basic
foodstuff (e.g bread) increases, then you canât afford the more
expensive alternative food (meat) therefore, you end up buying
more bread because it is the only thing you can afford.
50. Exceptions to the Law of Demand
Conspicuous Consumption/ Veblen Goods : The law of demand
will not apply in case of costly items such as Diamond. These
commodities will be demanded, even if the prices have gone up
very high.
Conspicuous Necessities : Certain commodities are necessities so
even if there price rises the demand does not fall. Example :
Automobiles
52. Shift In demand Curve or Change in Demand
A shift in the demand curve is caused
by the change in factors other than
the price of the good. It is of two
types Increase in Demand and
Decrease in Demand.
53. Elasticity of Demand
It refers to the degree of responsiveness in
demand due to change in price of a commodity
or income of the consumer or price of related
goods.
It can be of 3 types:
1. Price Elasticity of Demand
2. Income Elasticity of Demand
3. Cross Elasticity of Demand
54. Price Elasticity of Demand
Price elasticity of demand (PED or Ed) is a measure to show
the responsiveness, or elasticity, of the quantity demanded of
a good or service to a change in its price, ceteris paribus. It is
a quantitative approach.
56. ⢠Supply and demand are the two words that
economists use most often.
⢠Supply and demand are the forces that make market
economies work.
⢠Modern microeconomics is about supply,
demand, and market equilibrium.
Production and Cost Market
57. ⢠According to the Law of Supply:
â Firms are willing to produce and sell a greater
quantity of a good when the price of the good is
high.
â This results in a supply curve that slopes upward.
⢠The Firmâs Objective
â The economic goal of the firm is to maximize
profits.
58. ⢠Total Revenue
â The amount a firm receives for the sale of its output.
⢠Total Cost
â The market value of the inputs a firm uses in
production.
⢠Profit
â The firmâs total revenue minus its total cost.
Profit = Total revenue - Total cost
59. ⢠A firmâs cost of production includes all the
opportunity costs of making its output of goods
and services.
⢠Explicit and Implicit Costs
âA firmâs cost of production include
explicit costs and implicit costs.
⢠Explicit costs are input costs that require a direct
outlay of money by the firm.
⢠Implicit costs are input costs that do not require
an outlay of money by the firm.
60. ⢠The Production Function
âThe production function shows the
relationship between quantity of inputs used
to make a good and the quantity of output of
that good.
⢠Marginal Product
âThe marginal product of any input in the
production process is the increase in output
that arises from an additional unit of that
input.
61. ⢠Diminishing Marginal Product
âDiminishing marginal product is the property
whereby the marginal product of an input
declines as the quantity of the input increases.
⢠Example: As more and more workers are hired at a firm,
each additional worker contributes less and less to
production because the firm has a limited amount of
equipment.
62. 0 Number of Workers Hired
Quantityof
Output
(cookiesper
hour)
4
2
1 3 5
50
90
150
140
120
Production
function
Hungry Helenâs Production Function
64. ⢠Costs of production may be divided into fixed
costs and variable costs.
⢠Fixed costs are those costs that do not vary
with the quantity of output produced.
⢠Variable costs are those costs that do vary
with the quantity of output produced.
66. ⢠Average Costs
âAverage costs can be determined by
dividing the firmâs costs by the
quantity of output it produces.
âThe average cost is the cost of
each typical unit of product.
67. ⢠Average Costs
â Average Fixed Costs (AFC)
= ATC / Q
â Average Variable Costs (AVC)
= AVC / Q
â Average Total Costs (ATC)
= ATC / Q
â ATC = AFC + AVC
68. ⢠Marginal Cost
â Marginal cost (MC) measures the increase in total
cost that arises from an extra unit of production.
â Marginal cost helps answer the following
question:
⢠How much does it cost to produce an additional unit of
output?
THE VARIOUS MEASURES OF COST
69. ⢠Marginal Cost
â Marginal cost (MC) measures the increase in total cost
that arises from an extra unit of production.
â Marginal cost helps answer the following
question:
⢠How much does it cost to produce an additional
unit of output?
MC
(change in total cost) TC
(change in quantity) Q
70. ⢠The cost curves shown here for Thirsty
Thelmaâs Lemonade Stand have some
features that are common to the cost
curves of many firms in the economy.
⢠Lets examine three features in particular:
â The shape of the marginal cost curve
â The shape of the average cost curve
â The relationship between marginal and
average total cost
72. ⢠Marginal cost rises with the amount of output
produced.
â This reflects the property ofdiminishing
marginal product.
⢠The average total-cost curve is U-shaped.
⢠At very low levels of output average total cost is high
because fixed cost is spread over only a few units.
⢠Average total cost declines as output increases.
⢠Average total cost starts rising because average
variable cost rises substantially.
73. ⢠The bottom of the U-shaped ATC curve occurs at the
quantity that minimizes average total cost. This
quantity is sometimes called the efficient scale of the
firm.
⢠Relationship between Marginal Cost and Average
Total Cost
â Whenever marginal cost is less than average
total cost, average total cost is falling.
â Whenever marginal cost is greater than average
total cost, average total cost is rising.
â The marginal-cost curve crosses the average-
total-cost curve at the efficient scale.
74. ⢠Economies of scale refer to the property
whereby long-run average total cost falls as
the quantity of output increases.
⢠Diseconomies of scale refer to the property
whereby long-run average total cost rises as
the quantity of output increases.
⢠Constant returns to scale refers to the
property whereby long-run average total
cost stays the same as the quantity of output
increases