Basic economics concepts - PowerPoint PPT Presentation. Herberg's Theory, Cultural Web, Pareto Curve, CIM Concept. Basic Concepts in Microeconomics by chlsc in Types > Research > Business & Economics and basic. Basic Concepts of Economics. Needs & Wants, Factors of Production, Consumers. To learn the concept of the factors of production students will. FUNDAMENTALS OF ECONOMICS IN SUSTAINABLE. The Fundamentals of Economics in Sustainable Construction is. In the book there are presented the basic concepts. Could find BASIC CONCEPT TEST ANSWER ECONOMICS PDF or just found any kind of Books for your readings everyday. Download : Basic Concept Test Answer Economics. The basic concept for the Democracy Ranking of the Quality of. This one focuses on key economic concepts.It covers: Economics defined Goods and Bads Resources Ke. Introducing Economics: Basic Concepts. Introduction to Economics: Basic Concepts & Principles As a novice, economics seems to be a dry social science that is laced with diagrams and statistics; a complex branch that deals with rational choices by an individual as well as nations — a branch of study which does not befit isolated study but delving into the depths of other subject areas (such as psychology and world politics). What is Economics? Economics Definition: Economics is essentially a study of the usage of resources under specific constraints, all bound with an audacious hope that the subject under scrutiny is a rational entity which seeks to improve its overall well- being. Two branches within the subject have evolved thus: microeconomics (individual choices) which deals with entities and the interaction between those entities, while macroeconomics (aggregate outcomes) deals with the entire economy as a whole. A typical college student (or an overburdened husband?) appreciates the lessons of economics in day- to- day life. Economic Information for Beginners. Another concept introduced early in economics is exchange rates. Economics; Economic Information for Beginners. Semester books and carton of cigarettes (choices) are to be purchased with a limited amount of pocket money (constraints). The aim of studying economics is to understand the decision process behind allocating the currently available resources, the needs always unlimited but resources being limited. Adam Smith wrote . Meanwhile price is a result of the constant tug- of- war between the demand and supply. And all other random things kept constant for a good (brand, quality etc.); higher the price— lower will be the demand from the consumer (to save up for other purchases). Higher the price, higher will be the supply from the manufacturers (make hay while the sun shines!). The former is called the law of demand, and latter is called the law of supply. Time also plays a huge role in a free- market economy, more so in the case of entities in a competition to serve the consumers. Stock- outs are no good for a supplier as it affects the brand and the consumer can move elsewhere. If there is an excess of demand, the producers have to gauge the nature of demand first (seasonal, increasing trend) to react in a swift fashion, to corner the market and retain the existing customers. The stable state of equilibrium in an economic system makes the economy efficient, the suppliers are moving their goods and the consumers are getting what they are demanding. The only point worth noting: the point of equilibrium is ever- elusive and fluctuates like a wild boar in each minute quantum of time. Economics Basics – The free market hypothesis. In a perfect free market, for any good or service— the total quantity supplied by the sellers and the total quantity demanded by the buyers will reach a state of economic equilibrium over time. Things closely follow the free market paradigm if two basic assumptions hold true: perfect competition and absence of . For instance you may forego going to the physics class for a session of LAN gaming, but the risk of not understanding subsequent lectures and flunking the semester is the opportunity cost you should be aware of. Every entity has a different point- of- view regarding this opportunity cost as the needs and resources of entities keep shifting with time. Economic efficiency is the measure of output obtained with a given set of inputs, i. Technological ability usually decides the upper limit for the maximum efficiency which can be achieved. The basic definition of scarcity is slightly philosophical— humans have unlimited desires but the means of production being finite and limited (labor, land and capital), various trade- offs are to be made to allocate the resources in the most efficient way possible. 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. It usually depends on the nature of product (luxury v/s necessity), the number of substitutes available in the market, share of wallet etc. If quantity of the good changes drastically with a change in its prices, it is said to be elastic (PS3 selling at a 4. If quantity of the good does not change much with a change in its prices, it is said to be inelastic (onions need to be purchased even after the prices double as it is a basic necessity and there are no actual substitutes). Utility is the satisfaction that one achieves from consuming a good/service, and is an abstract concept based on the individual in question. Marginal utility is the extra satisfaction one gets from each additional unit of consumption. Taking a holistic example in lieu of an easier and obvious one — research proves that the money one earns contributes hugely towards average life happiness in the initial stages of getting those riches, but its role tapers off sharply as the income grows. The economists refer to this is as the law of diminishing marginal utility. The third chocolate doesn. If an entity is really efficient in producing a commodity (output to input ratio is high), it has an advantage over another entity which is not that efficient in producing the commodity under consideration. If I am good at making shoes and you are good at making jam, it makes sense to do what we are good at and trade afterwards. Moreover, the economies of scale prove to be an icing on the cake — the production cost per unit decreases as we produce more and more of the same units (the initial one- time setup cost can be a major part of the total expense). And the best part is that both parties are better off after doing the transaction (and so is Mother Earth, for less wastage). Just to appreciate the grandeur of this simple idea, just imagine your standard of living in a world where you have to produce everything for yourself. You would likely revert to a medieval lifestyle, growing your own food and defending our own property. Say goodbye to the i. Phones, cushy jobs, roads (even the shitty ones), branded clothes and the air- conditioned comforts. Studying economics can be both rewarding and intimidating at first, but knowledge of basic economics is essential not only for the B- School junta but for anyone who interacts with markets. In an era where having money is one of the prime determinants of the ability to make more of it, you better watch out and get your basics right. Learn more about the most important topics in Economics– Introduction to Microeconomics– Introduction to Macroeconomics– Game Theory in Economics– Price Elasticity of Demand. Back to the top: MBA Syllabus. Image Source: resourcesforhistoryteachers.
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