...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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...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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...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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...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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...involves our new product Apple Watch we should make a study about its internal (micro) and external (macro) enviroment. First of all, we will describe what is the micro and macro enviroment analysis. The micro environment, as the name suggests, is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers, customers and local stakeholders, including local government agencies or regulatory bodies. The micro environment can generally be considered the local environment where the business Macro Environment The macro-environment includes those things that may impact small businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. For describing and analyzing the enviroment that involves our new product Apple Watch we should make a study about its internal (micro) and external (macro) enviroment. First of all, we will describe what is the micro and macro enviroment analysis. The micro environment, as the name suggests, is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers, customers and local stakeholders, including local government agencies or regulatory bodies. The micro environment can generally be considered the local environment where the business Macro Environment The macro-environment includes those things that may impact small businesses but which...
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...BBA 1st ۩ﺒﺴﻢﺍﷲﺍﻠﺮﺣﻤﻦﺍﻠﺮﺤﻴﻢ۩ Department: BBA (Banking & Finance) Assigned by: Ayesha Saleem Assigned to: Muhammad Ahmad Roll No. (134/3612) Subject: Micro Economics Semester: 1st (Evening) Institute: GC University Faisalabad 1. A consumer has income (I) OF $3,000. Pepsi price is $3 & cheese price is $6. a. Draw the consumer Budget Line. b. What is the slope of this Budget Line? Budget Line: It shows all these combinations of two goods X & Y which a consumer can buy at given prices of goods, (OR) the limit on the consumption bundles that a consumer can afford. Income = I = XPx + YPy & Slope of Budget Line = Px/Py |Pepsi (X) |Cheese (Y) |Pepsi Price (Px) |Cheese Price (Py) $ |Income (I) | | | |$ | |= XPx + YPy | |0 |500 |$3 |$6 |$3000 | |100 |450 |$3 |$6 |$3000 | |200 |400 |$3 |$6 |$3000 | |300 |350 |$3 |$6 ...
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...important role inthe growth process of an economy. Various FDI theories provide the motivations and determinants ofFDI. Economists broadly classified the FDI theories into macro-level and micro-level FDI theories. Themacro-level FDI theories give the macroeconomic factors that determine the FDI and micro-leveltheories discuss the motivation of FDI associated with the firm level. Besides these two categories,the development theories of FDI also discussed the motivation of FDI flows. JEL Classification : F21, F23. Key words: FDI theories, macro-level FDI theories, Micro-level FDI theories, DevelopmentFDI theories.The Foreign Direct Investment (FDI) theories can be classified broadly into twocategories. One is at the macro level and the other is at the micro level. Again at the macro-level, we have capital market theory, Dynamic macroeconomic theory, FDI theories based onexchange rates, FDI theories based on economic geography, gravity approach to FDI and FDItheories based on institutional analysis. At the micro-level, we have the theories likeExistence of firm specific advantages (Hymer), FDI and oligopolistic markets, Theory ofinternalization, and Electic FDI theory (John Dunning). Recently another type of FDIcategories discussed by the economists is the development theories which combine both themicro level and macro-level FDI theories. The development theories are Life cycle theory,Japanese FDI theories and five stage theories (John Dunning). What are the factors thatattract FDI...
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...Economics is the study of how our unlimited demand of certain things can be met by our limited amount of supply. For instance, if there was an unlimited amount of money for everyone, then everyone would have everything they had always wanted and would not have to work to get the money. Everyone would have billion dollar homes and the nicest cars in the world. Unfortunately, we do have a limited amount of money, so the economists find ways to get around that. There are two types of economics, there is macro-economics and micro-economics. Macro-economics studies the economy as a whole, while micro-economics studies the smaller aspects of the economy. In the automotive world, the macro-economics part would evaluate how automobiles are selling, and micro-economics would evaluate how each vehicle is selling. Macro would see how a jump in gasoline prices would effect the economy, but micro would see how it would effect the consumers in general. Economics is very important to all of us for many reasons. One reason is because unfortunately we don't all have all the money in the world, so we have to learn how to deal with what we do have. Another reason is because all of us have an unlimited amount of wants, but do not have the resources to take care of those wants. We all have to work to cope with the fact that we do not have an unlimited amount of resources. The combination of the two problems is what makes up our economic system. Economics plays a great role in my personal...
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...link macro-environment (noun) DEFINITION OF MACRO-ENVIRONMENT Larger societal forces that affect the micro-environment. EXAMPLES OF MACRO-ENVIRONMENT IN THE FOLLOWING TOPICS: Scanning and Analysis All organizations should continuously appraise their situation and adjust their strategy to adapt to the environment. One technique used by organizations to monitor the environment is known as environmental scanning. It allows marketers to understand the current state of the environment, so that the organization can predict trends. The Macro Environment There are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined. The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis. Environmental scanning is one technique used by organizations to monitor the environment. The Dynamic Environment It is important to place equal emphasis on both the macro and micro-environment and to react accordingly to changes within them. The Marketing Environment Two key levels of the marketing environment are the micro-environment and the macro-environment. The Micro-environment The micro-environment includes the company itself, its suppliers, marketing intermediaries, customer markets, and competitors. The company aspect of micro-environment refers to the internal environment of the company. The Macro-environment...
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...Question 1: How is the Microeconomics different from macro economics? Discuss also the subject matter of Microeconomics in detail. Answer: MICROECONOMICS "Micro Economics is the study of particular firm, particular household, individual prices, wages, incomes, individual industries and particular commodities." ( K. E. Boulding) In micro economics, we study the small segments of an economy or, in other words, we take up the individual decision – making units of an economy in microeconomics e.g., we analyze the demand of a product or often individual and the equilibrium price of a product rather than discussing the aggregate demand of the economy and the general price level in a country. Similarly in microeconomics, we study the determination of price/reward of a factor of production, analysis of an individual firm or industry, the consumption pattern of a person, choice of technique and different market situations etc. Microeconomics is generally called the “Price Theory”. • Production. In this part of microeconomics we study the meaning of the production of wealth, the cost of production and how it is minimized factor of production and their relative importance in the production process, the production function, the analysis of supply etc. • Exchange. This part covers the market mechanism or the exchange of wealth through the forces of demand and supply, perfect and imperfect market at the behavior of the competitors etc. • Distribution. This part starts with the theory...
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...Marketing–What’s It All About If forced to define marketing, most people, including some business managers, say that marketing means “selling” or “advertising.” It’s true that these are parts of marketing. But marketing is much more than selling and advertising. How Marketing Relates to Production Production is a very important economic activity. Whether for lack of skill and resources or just lack of time, most people don’t make most of the products they use. Although production is a necessary economic activity, some people overrate itsimportance in relation to marketing. Their attitude is reflected in the old saying:“Make a better mousetrap and the world will beat a path to your door.” In otherwords, they think that if you just have a good product, your business will be a success. The point is that production and marketing are both important parts of a total business system aimed at providing consumers with need- satisfying goods and services. Together, production and marketing supply five kinds of economic utility—form, task, time, place, and possession utility that are needed to provide consumer satisfaction. Here, utility means the power to satisfy human needs. Form utility is provided when someone produces something tangible—for instance, a bicycle. Task utility is provided when someone performs a task for someone elsefor instance, a bicycle. The product must be something that consumers want or there is no need to be satisfied. Time utility means having the product...
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...F.Y.B.A. Paper – I Economic Theory (Micro Economics-I) SECTION – I Module 1 : Introduction Meaning, nature, scope, significance and limitations of micro economics. Ceteris Paribus – use and significance. Concept and types of equilibrium : stable, unstable, static and dynamic equilibrium – partial equilibrium and general equilibrium, positive economics and normative economics, managerial economics. Basic concepts – wealth, welfare and scarcity. Basic tools of economics analysis (equations and functions, graphs and diagrams, slope and intercepts) Module 2 : Consumers Behaviour and Demand Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and Cost Analysis Concept of production function : short run and long run – Cobb – Douglass production function. isoquants – iso-cost line – producer’s equilibrium. Law of variable proportion and Law of returns to scale – Economies of scale – Economies of scope. Concepts of costs : Money and real cost, Opportunity cost, Social cost, Private cost – Derivation of short run and long run cost curves–...
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...To begin, the micro environment cost of those elements which are controllable by management. Normally, the micro environment does not affect all the Companies in an industry in the same way. This is largely because of the size, capacity, capabilities and strategies which each Company use differently. For example, the raw material suppliers are given more concession to large size Companies. However, they may not give the same to small size Companies. Like the same, Companies will not mind if its closest rival is relatively small. But if the rival is large he will tend to be more conscious. Sometimes, the micro environment of various in an industry is almost the same. In such case, response to these firms to their micro environment may differ as each firm will seek to achieve a different success level. The most important factors of micro environment of business consist of competitors, suppliers, customers, public, marketing intermediaries and employees. On the other hand, macro environment is defined as the as major external factors that can influence an organization’s decision and affect its performance and strategies, (Business dictionary). These factors include political, economic, legal, technological, social, cultural and demographic. Managerial decisions are influenced by events that occur in the larger economic environment in which a Company operates. Changes in the overall level of economic activity, interest rate, unemployment rate, exchange...
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...Macro Systems Angelica Bever BSHS 325 June 18, 2015 Maria Perrotta Macro Systems According to Netting, Kettner, McMurtry, & Thomas (2012), “macro practice is a professionally guided intervention designed to bring about planned change in organizations and communities.” This paper will be discussing the concept of personal, interpersonal, and political, the ways individuals react in a macro, mezzo, and micro environment. As well as the macro system in response to child maltreatment, sexual abuse, crime and delinquency. The paper will also compare and contrast the functionalism and interactionist theory to poverty. Lastly, the role and responsibility of the human service worker in the macro environment will be discussed. Personal, Interpersonal, and Political Empowerment “…Personal, interpersonal, and political power enables individuals to gain greater control over their environments and attain their aspirations to enable them to gain greater control over their environments and attain their aspirations” (Gutierrez & Lewis, 1999). The concept of personal empowerment comes within you. It is self-reliance and making your own decisions, following responsibilities. You understand and know where you are headed. It is coming to the realization that something must change. An example of personal empowerment is a wife leaving her abusive husband because she is tired of being abused. She has come to the realization that something must be changed. Interpersonal empowerment...
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...Political Risk Political risk is a type of risk faced by investors, corporations, and governments. It is a risk that can be understood and managed with reasoned foresight and investment. Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or “any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives.”.[1] Political risk faced by firms can be defined as “the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).”[2] Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. A low level of political risk in a given country does not necessarily correspond to a high degree of political freedom. Indeed, some of the more stable states are also the most authoritarian. Long-term assessments of political risk must account for the danger that a politically oppressive environment is only stable as long as top-down control is maintained and citizens prevented from a free exchange of ideas and goods...
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