...Micro Economics: The Study of Individual behaviour. Economics is the study of allocation of scarce resources to satisfy the never ending wants. It basically deals with the means of production, consumption and transfer of wealth. It has several branches. The two most important branches of Economics are Micro Economics and Macro Economics. Micro economics deals with the analysis of price determination and the allocation of specific resources to particular uses. Whereas macroeconomics aims at determining the levels of national income, total empowerment of resources and general price level. In other words, micro economics deals with individual behaviour and micro aspects of the industry while macroeconomics is the study of the macro aspects or the industry as a whole. In the words of K. E. Boulding, “Microeconomics is the study of a particular firm, particular household, individual prices, wage, income, industry and particular commodity.” The heads covered by microeconomics can be set forth as below: 1. Theory of Product Pricing: This can be further broken down in to two viz the theory of consumer behaviour and the theory of production and costs. 2. Theory of factor pricing: It has four constituents namely the theories of wages, rent, interest and profits. 3. Theory of economic welfare: Micro economics also examines whether resources are efficiently or optimally allocated so as to maximise output or social welfare i.e. theory of economic welfare. Education Industry in Australia ...
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...1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money, the value of the money. No 5. Explain the two main causes of market failure and give an example of each! = Externality, is the impact of one person’s action on the well being of a bystander Example: pollution. = Market power, is the ability of a single economic actor (or small group of acors) to have a substantial influence on market prices. Example : if everyone in town needs water but there is only one well, the owner of the well is not subject to the rigorous competition with which the invisible hand normally keeps self interest in check. 2. Principles of economics-mankiew CHAPTER 2 –question for review (38) No. 1. Why do economists sometimes offer conflicting advice to policymakers? = economist who advise policymakers offer conflicting advise either because of differences in scientific judgements or because of differences in values. At other times, economist are united in the advice they offer, but policymakers may choose to ignore it. No. 7. What are the subfields into which economics is divided? Explain what each subfield studies. = microeconomics and macroeconomics. Microeconomics is the study of how households and firms are...
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...Microeconomics & Markets Frederieke Dijkhuizen Microeconomics Chapter 1. The fundamentals of managerial economics Manager: a person who directs resources to achieve a stated goal. Economics: the science of making decisions in the presence of scarce resources. Managerial economics: the study of how to direct scarce resources in the way that most efficiently achieves a managerial goal. Economic profits: the difference between total revenue and total opportunity cost. Opportunity cost: the explicit cost of a resource plus the implicit cost of giving up its best alternative use. The five forces framework -‐ Entry -‐ Power of input suppliers: industry profits tend to be lower when suppliers have the power to negotiate favourable terms for their inputs. -‐ Power of buyers: industry profits tend to be lower when consumers have the power to negotiate. -‐ Substitutes and complements...
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...There are many reasons for studying economics. Economics is essential to understanding the world in which you live and work. What determines the prices of the goods and services on which you spend your income, and the prices of the stocks and bonds in which you invest your savings? How does education affect the lifetime earnings of people? Why do some people earn so much and others so little? Why do some jobs pay high wages while other jobs pay low wages? How do firms operating in different market environments decide what quantities to produce of their product outputs, what prices to charge for these outputs, and what quantities of labor and capital inputs to employ? How can economic analysis help us understand and solve the problems of environmental pollution and resource depletion? What determines the level of national income and aggregate employment, the rate of price inflation, the rate of unemployment, the rate of growth of aggregate output and productivity, and the international value of some country dollar? Why do average standards of living vary so widely among and within countries? Another reason to study economics is that it can equip you to participate more successfully in the increasingly knowledge-based and interdependent global economy of the twenty-first century. Economics is fundamentally about choice behavior - about how individuals, families, firms and governments deploy their scarce resources so as to maximize the economic well-being of their stakeholders....
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...Fundamentals of Macroeconomics Paper Dana Galasso ECO 372 University of Phoenix Professor Kirk The economy of our country is split into three different categories. These three categories are household, business, and government. Each of these three categories are separate, but yet connected. These categories are not only interconnected amongst themselves, but they also help connect the United States economy to the rest of the world economies. There is a constant among all people in the United States and worldwide that connects them all in a special way. The one constant is that every person requires food to survive. The usual way that people obtain food is by going to the grocery store and purchasing groceries. When an individual purchases groceries, he or she is providing nutrition for their family, but not only that they are contributing to the economy. A person walks into their local market and picks up items to cook for dinner. He or she then pays their bill at the register. Included in the price of the groceries is a small mark up that allows the store owner to make payroll, purchase more groceries and supplies, pay rent, and pay the utility bills. It may seem that one person shopping for a few items may not make a difference, but when there are masses of people shopping for groceries then the result of monies trickling from the consumer, to store owner to employees and suppliers multiplies by tenfold. Using the example of the homeowner purchasing...
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...1. Which of the following is true under monopoly? A. Profits are always positive B. P > MC C. P = MR D. All of the above are true for monopoly Answer: B 2. In a competitive industry with identical firms, long run equilibrium is characterized by A. P = AC B. P = MC C. MR = MC D. All of the statements associated with this question are correct Answer: D 3. Which of the following is true? A. A monopolist produces on the inelastic portion of its demand B. A monopolist always earns an economic profit C. The more inelastic the demand, the closer marginal revenue is to price D. In the short run a monopoly will shutdown if P < AVC Answer: D 4. Which of the following is true under monopoly? A. Profits are always positive B. P > minimum of ATC C. P = MR D. None of the statements associated with this question are correct Answer: B 5. In the long-run, monopolistically competitive firms: A. Charge prices equal to marginal cost B. Have excess capacity C. Produce at the minimum of average total cost D. Have excess capacity and produce at the minimum of average total cost Answer: B 6. If a monopolistically competitive firm's marginal cost increases, then in order to maximize profits the firm will A. Reduce output and increase price B. Increase output and decrease price C. Increase both output and price D. Reduce both output and price Answer: 7. Which of the following market structures would you expect to yield the greatest product variety? A. Monopoly ...
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...Assignment 1 a) Identify and describe the 3 economic systems that govern economies around the world. 3 Economic Systems There are three types of economic systems that govern economies around the world. These are Traditional Economy, Market Economy and Command Economy. 1. Traditional Economy: This economy system is based on traditions. Economic decisions are based on customs, beliefs and traditions of the community, family, clan or tribe. At one time most people lived in traditional economies. In modern times this system still exists in rural and non-developed countries. Under this system, economic decisions are based on customs, religion and culture.. An Individual’s roles and choices are based on customs of past generations. This economic system often uses bartering and trading of goods although this may be limited because there is very little surplus produced. A disadvantage of this system is that it tends to discourage modern technology and the lack of progress tends to lower the standard of living. As a result modern technology is not prevalent in this type of economic systems The supporters of this type of economy believe that this system offers the advantage of stability and preserves the spiritual and cultural aspects of life. To summarize individuals in this system base their decision on past customs as opposed to having the freedom in making economic choices 2. Market Economy: This system of economy is based on supply and demand. It represents...
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...Writing Assignment The World Factbook Mexico Economy - overview: Mexico is democratic country with a capitalistic economy or free market economy. It has plenty of natural resources and developing companies primarily own by the private sector it contains a combination of modern and outmoded industry and agriculture. Current management has increase competition in railroads, electricity generation, seaports, airports, natural gas distribution and telecommunication. The distribution of the income inside the country remains unstable. Regarding the free trade agreements, Mexico has with over fifty countries including Honduras, El Salvador, Guatemala, the European Free Trade Area, and Japan putting more than 90% of trade under free agreements. In July 2012 Mexico joined the pacific alliance with Chile, Peru and Colombia. The presidents Felipe Calderon productively pass pension and fiscal reforms in 2007. As the worlds demand for exports dropped Mexico’s GDP plunged 6.22% in 2009 asset prices dropped and so do remittances and investment. In 2010 the GDP growth was positive by 5.6% with exports, particularly by the United States, Leading the way. In 2011 growth slowed to 3.9% and recover to 4%. In 2012 Mexico’s legislature passed a labor reform which was signed into law by President Felipe Calderon by November. The new pact for Mexico was signed by the new president, Enrique Pena Nieto, along with the leaders of the country's three main political parties: the Institutional Revolutionary...
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...Pham Viet Anh, Dinh Trong Nhan Younger Buyers Challenge Luxury Retailers in Asia By Bettina Wassener The New York Times, November 18, 2009 Principle: The Three Fundamental Economic Questions Answering all three fundamental questions correctly is the very first condition to succeed in any economic attempts, varying from your small shop’s daily trades to big multinational contracts. These questions are: 1. What to produce and how much? 2. How to produce? 3. For whom to produce? For the first question, it includes two minor questions (what to produce and how much), however, it aims at only one target: our scarce resources’ problems. Mr. Greedy must consider WHAT he could exploit from his resources, WHAT his potential customers want and HOW MUCH he could produce. If he do the first puzzle well, Mr. Greedy would move on to the next one: HOW to produce. Well, our potential economist would solve this problem easily (thanks to our advanced technology). But now he comes to one big problem: How he could benefit from these products? He has to analyze and clarify a list of his potential customers who would satisfy him. This is the third fundamental economic question: FOR WHOM to produce (determining the potential markets). Now it’s time to drop the theoretical glasses and see something real. We have Zegna – the 99-year-old Italian luxury men’s wear company. Its retailers – “traditional, sedate, salon-like Zegna” appear in almost...
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...authorities to an extend of 50% or more. The public sector is that portion of society controlled by national, state or provincial, and local governments. The public sector overlaps with the private sector in producing or providing certain goods and services. The extent of this overlap varies from country to country, state to state, province to province, and city to city. This overlap is most often seen in waste management, water management, health care, security services, and shelters for homeless and abused people. ROLE OF PUBLIC SECTOR IN INDIA: The public sector has been playing a vital role in the economic development of the country. In fact the public sector has come to occupy such an important place in our economy that on its effective performance depends largely the achievement of the country's economic n social goals. Public sector is considered a powerful engine of economic development and an important instrument of self-reliance. The main contributions of public enterprises to the country's economy may be described as follows: * Employment: Public sector has created millions of jobs to tackle the unemployment problem in the country. Public sector accounts for about two-thirds of the total employment in the organised industrial sector in India. By taking over many sick units, the public sector has protected the employment of millions. Public sector has also contributed a lot towards the improvement of working and living conditions of workers by serving as a model employer...
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...Economics: Micro and Macro Theory and Application Outcome1 1. In economics, and cost accounting, total cost (TC) describes the total economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which are independent of the quantity of a good produced and include inputs (capital) that cannot be varied in the short term, such as buildings and machinery. TC = FC + VC Average cost equals to total cost divided by the number of goods produced (output). It is also a sum of average variable costs plus average fixed costs. Average costs may dependent on the time period considered. Average costs are a fundamental component of supply and demand. AC = TC / Output Marginal Costs are the costs for producing one more unit of a good. It is calculated by looking at the difference between levels of Total Costs. In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit. For example, if producing additional vehicles requires building a new factory, the marginal cost of the extra vehicles includes the cost of the new factory. 2. Oligopoly is a form of market structure different from perfect competition, where there is a significant number of small competitors, and from a pure monopoly, where there is only one giant company. The dominant form of oligopoly in developed countries when...
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...Economics is characterized as the investigation of how the people cooperate to change over constrained assets into products and administrations with a specific end goal to fulfill their needs (boundless) and how they circulate the same among themselves. Economics has been partitioned into two noteworthy parts Microeconomics and Macroeconomics. The previous is the investigation of monetary conduct of a specific individual, firm, or a family unit, it concentrates on a specific unit while the last is the investigation of totals not a solitary unit but rather every one of the units consolidates. Take a gander at the imperative contrasts in the middle of micro and macro aspects underneath. The difference between micro and macro economics is simple....
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...Victor From: Subject: Project Part 1 Voter Victor. The United States is said to have a mixed economy. This is because of privately owned businesses and government both plays important roles. The American free enterprise system is based solely on private ownership. The American economy is indeed a consumer based and a capital based economy. A mixed economy is an economic system in which both the state and the private sector direct the economy, reflecting the characteristics of both market and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight. Because the United States economy is driven by perhaps the best example of a consumer-based society and a capital-driven citizenry, it is important to understand and interpret what role the US government plays in the operations of our economy. Historically, the degree to which the government has played a role in the economic structure of the country has defined the large differences in the outlook and well-being of the citizens of the United States. Whether this meant the institution of greater social programs and economic safety-nets under FDR's "New Deal," or the lessening of governmental influence in the capitalist days of Reaganomics, the role of the US government in the acquisition and redistribution of money in society is central to understanding the relationship between resources and the citizenry. (Parry, 2012) In today's society the United States government is the protector...
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...MICRO-ECONOMICS BY DARLINGTON MZIE 2014-15 Mosi-oh-tunya high DARLINGTON PHIRIM M ECONOMICS DEF: a dynamic subject that studies e changes in e economy -it is a scientific inquiry where economic agents seek to allocate scarce resources efficiently. This goes about in answering fundamental economic questions, how, what and 4 whom. (P. Samuelson) -it’s a human science which studies e relationship between e use of scarce resources and their uses that strive for them. BASIC ECONOMIC PROBLEM SCARCITY –human needs and wants tend to be infinity. This leads to what can be refered as the economic problem. ...
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...fffff ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffAssignment of Fin-2103: Principles of Marketing Assignment on “Elements of Macro-Environment & its impact over marketing of Bangladeshi goods & services” Md. Omar Faruque Course Instructor/ Lecturer, Department of Finance, Faculty of Business studies Jagannath University, Dhaka .] Sultan Ahmed Khan Representative of the group Epimetheus BBA 3rd Batch Department of Finance, Jagannath University, Dhaka. Submitted by Submitted to Group Name: Epimetheus Group No: Name of the members of the group: Serial No: Name of the members of the group Roll Number 01 Sultan Ahmed Khan 091597 02 Md. Mynul Islam 091633 03 Sharjil Ahmed 091623 04 Anik Mahmud 091636 05 Mamunur Rashid 07882747 06 Md. Mofazzal Hossen 091615 07 Nusret Jahan Nupur 091519 08 Mahmuda Akter Tonny 091571 09 Protiva Talukder 091602 Group Representative: Sultan Ahmed Khan. Group Coordinator : Md. Mynul Islam. Contact : epimetheus.jnu@gmail.com 18th October 2010 The Course Instructor, Md. Omar Faruque, Lecturer, Dept. of Finance, Jagannath University, Dhaka. Subject: Thanks to our mentor for giving us a challenging assignment. Sir, We are the students of dept. of finance (3rd batch) of Jagannath University, Dhaka. We are very much enthusiastic about our assignment. We are really happy to have such an assignment of challenging and interesting like this. Our presentation topic is `Elements of Macro...
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