...Economics Basics: Introduction Economics may appear to be the study of complicated tables and charts, statistics and numbers, but, more specifically, it is the study of what constitutes rational human behavior in the endeavor to fulfill needs and wants. As an individual, for example, you face the problem of having only limited resources with which to fulfill your wants and needs, so, with your money, you must make certain choices. You'll probably spend part of your money on rent, electricity, and food. Then you might use the rest to go to the movies and/or buy a new pair of jeans. Economists, interested in the choices you make, inquire into why, for instance, you might chose to spend your money on a new DVD player instead of a replacing your old TV. They would want to know whether you would still buy a carton of cigarettes if prices increased by $2 per pack. The underlying essence of economics is trying to understand how both individuals and nations behave in response to certain material constraints. We can say then that economics, often referred to as the “dismal science,” is a study of certain aspects of society. Adam Smith (1723 - 1790), the “father of modern economics” and author of the famous book An Inquiry into the Nature and Causes of the Wealth of Nations, spawned the discipline of economics by trying to understand why some nations prospered while others lagged behind in poverty. Others after him also explored how a nation's allocation of resources affects its wealth...
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...SECTION A 1. A change in demand refers to a decrease or increase in demand due to change in non-price factors affecting demand. Therefore, it is referred to as a shift in demand (Forstater and Mathew 57). For instance, tea and coffee are close substitutes, if there is a decline in the price of a substitute (coffee); demand for the other good (tea) will decline as indicated in the graph below. D0 indicate the initial demand curve for tea, however, after a decline in the price of coffee, the demand curve shift to D1. D0 P D1 Quantity Conversely, a change in quantity demanded occurs as a response by consumers to a change in a commodity price. It is referred to as a movement along a demand curve (Frank, Ben and Louis 76). In the graph below, the initial price is P0 and the corresponding quantity demanded is Q0, however, when the price changes to P1, quantity demanded also changes to Q1. This represents a change in quantity demanded from Q0 to Q1. P D0 P1 B P0 A D0 Q1 Q0 Quantity A change in quantity supplied is caused by a change in the price of...
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...1. When a firm hires an additional unit of labor, the increase in a firm's total revenues is known as the marginal: A) utility product. B) revenue product. C) product. D) cost. 2. Assume Ajax Company employs 100 workers and total revenue is $400,000. When Ajax Company employs 101 workers, total revenue is $405,000. The marginal revenue product of the 101st workers is: A) $5 thousand. B) None of the answers. C) $40 thousand. D) $405 thousand. 3. Assume consumer demand for CD-ROMs increases. The result is a (an): A) increase in the marginal revenue product of firms in the CD-ROM industry. B) rightward shift in the market demand for labor curve in the CD-ROM industry. C) all of the answers. D) None of the answers. E) increase in derived demand for workers in the CD-ROM industry. 4. Which of the following statements concerning the supply of labor is true? A) None of the answers. B) The supply of labor is determined by the prevailing wage rate. C) The wage rate has no effect on the supply of labor. D) The labor supply curve is downward sloping. 5. One reason the supply of carpenters is greater than the supply of physicians is because: A) physicians do not belong to a union. B) carpenters demand less income. C) None of the answers. D) carpenters belong to unions. 6. Suppose a change in technology increases the marginal product of labor. The result is a (an): A) None of the answers. B) downward movement...
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...| | Economics is more than just the study of charts, graphs, and detailed tables consisting of statistics and numbers, it explains an individual’s rational behavior in fulfilling their needs and wants. Economic exist as a means to understand how individuals and countries respond to limited resources whilst having unlimited wants. Adam Smith, also known as the “father of economics” focused on the study of why some nations prosper and other nations suffer in poverty. The allocation of resources is a determinant that contributes to a country’s wealth various classes in a society. Simply put, economics is not only a social science that studies man’s behaviors based on their interest, but it also involves the study of wealth. In describing the relationship between the number of inputs and the law of diminishing marginal productivity Economist and business owners consider variable inputs, labor, and the overall product produced. These factors are based on the law of diminishing returns which happens when the return on production decreases after a specific level of labor is reached. The law of diminishing marginal productivity and diminishing returns are factors used by employers when making a decision on which activities to produce (marginal product), production schedules, and how many workers are required to complete the final product. The Long Run and Short Run decisions also factor into what the firm chooses as a least expensive method of producing from all available methods...
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...rituals that incorporate economics; their practice of economics is camouflaged in a social institution morally sought out by their personal beliefs. At the simplest level, economics is the distribution and production of goods. When an economic institution is embedded in a noneconomic institution, people do not think about the production and distribution of goods but about their daily routine and expectations within a community. A person can perform daily tasks completed by a thought process that they are doing this task for religion, family, legal reasons, etc. but they do not do it for economic purposes. Noneconomic institutions in an embedded economy are the core of society and shape a person’s mindset. A disembedded economy can be characterized as separating all institutions into their own categories. While every social institution does intertwine. Economics is the underlying factor in these institutions, economics demands it’s own institution because of the advancement of modern society. The disembedded economic process revolves around individual affluence and focusing on what goods are produced and distributed in order to reach self-accomplishment. Disembedded economies allow individuals to be selfish and reach your ideal welfare state. It’s important to note that a disembedded mindset ultimately evolved so that individually, we can reach affluence and differentiate ourselves, rather than worrying about the community before ourselves. The economic structure of modern...
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...Unit-I Economic Geography Economics: Economics is the social science which studies optimum utilization of scarce resources. It basically studies economic activities, markets, allocation, money, capital, competition, resources, development, growth, welfare, well-being, poverty, deliberate, purposeful, rational, optimal, efficient, and many more. We can also define the economics as "Economics is the study of purposeful human activities in pursuit of satisfying individual or collective wants" "Economics is the study of principles governing the allocation of scarce means among competing ends" Geography: When we think of Geography, we often use the following words or concepts: location, site, place, access, spatial, regional, distance, separation, proximity, speed, mobility, transportation, resources, communication, agglomeration etc. Economic Geography: What are the major factors that explain the recent growth of the Chinese economy and the relative decline of the United States economy? What explains persistent poverty in pockets of global cities such as New York, London and Tokyo, and what prompted the emergence of vast urban slums in Calcutta? What are the impacts of globalization on people’s jobs and livelihoods in different parts of the world? Explaining the causes and consequences of uneven development within and between regions is a central concern for economic geographers. The discipline’s goal has long been to offer multi-faceted explanations for economic processes...
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...* Part A Introduction This section will analyse an example of an event which led to an emergence of a black market on sales of tickets due to decisions made on how tickets were to be distributed. Events such as major sporting events, concerts by popular artists, etc are particularly prone to this issue. Huge profits can be gained by selling these tickets on the black market and subsequently cause massive losses in revenue for the organisers of the event. Recommendations as to how to regulate such a market are also explained. This section will use President Elect Barack Obama’s recent inauguration to the Presidency of the United States as its example. These points can be explained through the analysis of the following topics: * The price mechanism and equilibrium price. * Changes in demand, supply and equilibrium price. * Price and the allocation of resources. The Event Barack Obama made history on January 20, 2009 as he was inaugurated as the first African American to be inaugurated to the Presidency of the United States. For people to attend such a massive event, 240,000 tickets were made available for reserved seating and standing areas around Capitol Hill. It was decided that these tickets were to be made available free of charge and distributed through the members and representatives of Congress when requested by members of the public. The price mechanism and the equilibrium price The price mechanism describes the way in which the prices charged...
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...As a student that is living in the time of an important election economic prosperity for our nation would be a really important. Hearing about the Great Depression and witnessing the Great Recession it would be horrible to see our nation fall back into what it once did. After reading Thomas Sowell Basic Economics: A Citizen’s Guide to the Economy he talked about to major factors that deal with the economy jobs and the effect of their wages. One of the first things that Sowell talks about in the beginning of this chapter is how the staving jobs would could have a negative effect on some industries. Sowell use the example of the steel industry “…saving jobs in the steel industry by restricting imports of steel from other counties does not mean that the economy as a whole will have more job” (Sowell 261). What he meaning by...
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...What I Have Learned During and After My Presentation By: Isaac Abraham This class help me in a few ways about presentation skills and just presenting yourself in general. I think it’s important that a person presents his/herself in the way he/she wants to be viewed by others. Everyone should want to be viewed in a positive light so in order to do so you must present yourself in a positive way. If you pay attention at any job or place you’ve worked and have seen someone get promoted it’s usually because of how he presents himself daily. By that I mean appearance, attitude towards job, work ethic, and communication skills. If you want to be promoted or acquire a position at a good company it is important to know how to present yourself in a short and long period of time in front of important people. During my presentation in this class I was a little nervous but I did the best I could do at the time. I think it was a great experience and helped me to be more prepared, organized, and confident in presenting myself. I used situational awareness in my speech by trying to sound professional in a serious voice tone. While observing others I was thinking I should have asked questions to the audience during my presentation to engage the audience more. I noticed the other presentations were more organized and this led me to think I should prepare more for things in general. I was influenced by the other classmates presenting the careers and areas of profession and learned quite a...
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...(a) The three questions that all economies are faced by are what to produce, how to produce and for whom to produce for given a limited amount of resources. The basic economic problem faced by all economies is scarcity of resources. McConnell, Brue simply defines scarcity as the shortage of resources within an economy. In a Planned economy the government answers all the three questions what to produce, how to produce and for whom to produce. what to produce is the first question to b addressed. The government conducts surveys and questioners to find what the consumers want before producing them. The decision on whether to start producing capital or consumer goods rests with the government. The government mass produces because they want to cater for almost everyone and they want the products to be fairly cheap they choose a production method that is least most costly. The last question is for whom to produce. The government desires that everyone gets an equal amount of the products besides social class or any form of discretion. In a Free market economy the questions what to produce, how to produce and for whom to produce maybe answered by individuals who own the land and capital. The market forces, also referred to as the way that the behavior of buyers and sellers affects the levels of prices and wages, without any influence from the government, determine what to produce. the producers a commodity that the consumers are willing to buy the most. In this economy we can...
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...Explain how a free market economy solves the 3 basic economic problems Free market economy is a system where every individual can function and operate free as a consumer or producer. The free market economy can be used to solve the 3 basic economic problems which is what to produce?, how to produce?, and for whom to produce. What to produce depends on three factors which is profit motive, price system and consumer sovereignty. Competition among producers will force the producer to come up with newer and more innovative ideas. Price mechanism will help to relocate resources efficiently whereby goods and services will be produce to satisfy unlimited human wants. Price | Demand(D) | Supply(S) | 1 | 10 | 2 | 2 | 8 | 4 | 3 | 6 | 6 | 4 | 4 | 8 | 5 | 2 | 10 | Equilibrium point Equilibrium point Price Mechanism diagram How to produce refers to the method of production which is using a cheaper method, using a new method of production by using high technology and labour intensive or capital intensive. Competition between producers improves efficiency and producer will try to cut down cost to get higher profit. For whom to produce is the third economic decision as towho will be receiving goods and services in the free market economy system is answered through the price system is answered through the price system. Goods and services are obtained by anyone who can afford them. Goods and services are distributed among the residents of the...
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...Linear programming of basic economic parameters used at reengineering in small and medium enterprises 1. INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 2, March- April (2013)ISSN 0976-6502 (Print)ISSN 0976-6510 (Online)Volume 4, Issue 2, March- April (2013), pp. 31-43 IJM© IAEME: www.iaeme.com/ijm.asp ©IAEMEJournal Impact Factor (2013): 6.9071 (Calculated by GISI)www.jifactor.com LINEAR PROGRAMMING OF BASIC ECONOMIC PARAMETERS USED AT REENGINEERING IN SMALL AND MEDIUM ENTERPRISES Prof. Dr Slobodan Stefanović High School of Applied Professional Studies, Vranje, Serbia Prof. Dr Radoje Cvejić Faculty for strategic and operational management Belgrade, Serbia ABSTRACT In economic terms, linear programming is a mathematical technique used for selecting one among more possible economic decisions that will have the greatest efficiency. Most production issues have been solved by a linear programming method, also performed here, and a model of linear programming of economic parameters in re- engineering of small and medium enterprises, for their greater efficiency, is presented. Key words: linear programming, re-engineering, economic parameters, model. 1.0. INTRODUCTION Linear programming is a mathematical method for selecting an optimal solution among larger number of possible solutions. In mathematical terms, linear programming is a mathematical analysis of optimum problem. These...
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...Unit 3 IP JAMES FLOWERS American inter-continental university online Professor Hannon Microsoft While Microsoft has been very successful in providing the Windows operating system to PC makers as well as the Office Suite there is growing competition from Apple in terms of both the consumer market and the corporate market. The Apple Mac OS is now becoming a viable contender in both markets. However, in terms of the quickly growing and ever expanding mobile market Microsoft has done very little to win over handset makers and create an environment in which individuals are writing apps for their platform. In this case Apple has become the predominant leader and the standard methods of competing are not producing the results needed to remain competitive in the long-term market. For this reason I would recommend that Microsoft make a significant departure and start writing apps for the Apple IOS platform. While it may seem counterintuitive to develop apps that will run on other hardware Microsoft is currently faced with the issue of taking a beating in terms of the app market. Creating apps that run on iOS will allow Apple users to see the Microsoft products that are available and hopefully create additional revenue such that they can fund and create new opportunities in their own potential app store for Windows based phones. This is basically the last significant chance Microsoft has in order to salvage the potential...
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...Explain How Social, Political and Economic Forces Have Influenced Organization and the Practice of Management Basic Leadership Principles Colonel Royal Mortenson Colonel United States Marie Corps 1. Be a good person, a person of character and strength, and you will always be a good firefighter. 2. Never be afraid to take a moral or ethical stand on something you believe in your gut to be right. Stand up and be counted. 3. Someone has to lead, in the absence of authority---take Charge. 4. “Band of brothers” is not just a line from Shakespeare’s Henry the V. We are a “Band of brothers,” so, like a brother, never turn your back on a fellow firefighter. 5. Always strive to be tactically and technically proficient in all you do. The price of anything less is far too costly. Our environment is uncertain and lethal. Never let it be said that you lost a man or a woman because you failed to do your homework. 6. I will listen to and help any person, anytime. I expect my subordinate leaders to do the same; however, every member of our team must reach out and grab the “offered hand.” 7. Everything I do must prepare myself and my team for mission success and survival. Our enemies must understand that they have but two choices---“make peace or die.” 8. Take care of our families. Stress at home tears at the fiber of our organization. 9. I will hold myself accountable for all I do and don’t do. I will hold others accountable for their actions commensurate...
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...Economics Notes ****The Economic Problem |What Do These Notes Cover? | |To have a look at the mind map for this resource, please follow this link. | |If you would like to listen to these notes as an audio recording, please follow this link [2MB]. | Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version. [pic] • Scarce Resources: o Land ▪ Rent o Labour ▪ Wages o Capital ▪ Interest o Enterprise ▪ Profit o Uneven Distribution • The Science of Choice (linked to Scarce Resources) o Value o Utility o Sacrifice ▪ Opportunity Cost How do we sum up the basic economic problem? We all suffer from it and spend most of our lives trying to resolve it. Essentially, the economic problem stems from the fact that as humans, we have unlimited wants and needs. A need is something that can be seen as being essential to survival, such as food, water, shelter and warmth. A want is something that we would like to have but which is not essential to survival - a car, the latest version...
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