...Microeconomics In My Daily Life Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Similar to many other students, limited time during the school semester, forces me to make choices about what to study, when to study, and how to estimate the opportunity cost of every choice. Applying opportunity cost concept in my day-to-day life helps me better schedule my study time. For instance, I usually choose to study during weekdays because the opportunity cost of studying on these nights is lower than studying on Friday or Saturday nights, when usually more exciting events are happening. On the other hand, if my alternative on weekend is to stay home and organize my closet and do my laundry, I would choose to study, because to me, the value of studying...
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...Introduction: Economics has become an increasingly significant part of contemporary life. Regardless of the daily expenditure of our life or the allocation of the social wealth, all this affairs related can be explained by the economics and the functions of economics are playing the essential role. The essay is aimed to define the economics and discuss how we can use economics in our future career or daily life. What is economics Professor Israel Kirzner in The Economic Point of View points out that even among professional economists, there are ‘a series of formulations of the economic point of view that are astounding in their variety’. Many people feel that they are generally familiar with economics. However, if what the economics is asked, people will find that it is difficult to define the subject. After all, economics is more than money. As Mankiw mentioned in his book, economics is a study of mankind in the ordinary business of life, it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being. More generally, economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses, and scarcity refers to the limited nature of society’s resources. That is to say, economists not only study the consumption determination and investment portfolio, but also pay attention to the results that led by the consumption...
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...Microeconomics and the Laws of Supply and Demand Rose Essor DeSouza ECO/365 September 7, 2015 Lori Geddes Microeconomics and the Laws of Supply and Demand The Khan Academy video explained how demand and/or supply changes are affected when factors in the market change, and how these changes affects market equilibrium, which is the state where the supply in the market is equal to the demand in the market, price and equilibrium quantity. Because demand and supply in the market is interdependent and are constantly changing or shifting, they play a critical role in altering market equilibrium price points and quantity available. Demand shifts of more or less of a product results in a shift of both price and quantity. An increase in demand will shift price up and quantity to the right and a decrease in demand will shift price down and quantity to the left on the demand curve. Supply shifts of more or less of a product affects the equilibrium point by shifting the supply curve to the right, indicating that more availability of a product. This results in a lower price and a higher demand for a product. A shift in the supply curve to the left, indicating there is less availability of a product, which results in a higher price and a decrease in demand of a product. Supply and Demand Curves Microeconomics places emphasis on demand and supply in the marketplace, which normally determines the change of levels in price and factors of individual choices while macroeconomics...
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...Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Similar to many other students, limited time during the school semester, forces me to make choices about what to study, when to study, and how to estimate the opportunity cost of every choice. Applying opportunity cost concept in my day-to-day life helps me better schedule my study time. For instance, I usually choose to study during weekdays because the opportunity cost of studying on these nights is lower than studying on Friday or Saturday nights, when usually more exciting events are happening. On the other hand, if my alternative on weekend is to stay home and organize my closet and do my laundry, I would choose to study, because to me, the value of studying is more than the value of above...
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...Branches of Economics Branches of Economics Economics has two branches: microeconomics and macroeconomics. Microeconomics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. Its primary concern is to help consumers and investors make their lives better by increasing their earnings and satisfying their needs despite limited resources. Also included in its study are the consumers' decisions on what products to buy and how the cost of commodities is determined. Macroeconomics deals with the larger aspects of a nation's economy, such as the sectors of agriculture, industry, and service. It aims to (a) speed up the economy's growth rate and increase total production; (b) increase the rate of employment; (c) keep the prices of commodities stable so that they remain affordable; and (d) have sufficient reserves for foreign exchange for importing goods and paying off loans. Economists help in solving problems like unfair wages, rapid population growth, people migration to city centers, high crime incidence, and loss of human resources due to overseas migration. http://hotbabefatchicks.hubpages.com/hub/Branches-of-Economics The first process is MICROECONOMICS:- this is considering the small scale working of economic laws. Here we see a man faced with choice of ways to spend his limited money, or an individual business deciding its pricing policy. It is a branch of economics that studies how the individual parts of the economy, the household...
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...Matching Markets & Auctions Bence Gábor Microeconomics BBCI 2015 (Summer Semester) Instructor: Prof. (FH) Mag. Dr. Ferry Stocker Table of Contents Table of Contents 2 Introduction 3 Matching Markets 3 Finding the best match 3 Auctions 4 Auction formats: 4 Private values vs Common values: 5 Bidding strategies: 5 Glossary 6 Bibliography 7 Books: 7 Websites: 7 Graphs: 7 Introduction The aim of this report is to introduce matching markets and auctions in microeconomic level. These two might sound unfamiliar to many people, although they appear in our life almost on daily basis, we just do not usually recognize them. Matching Markets Markets can be thought as a prime example of network structured interaction between people (usually sellers and buyers) who interact with each other. A few of the basic examples of matchmaking from everyday life are marriage, applicants and colleges, students and dormitory rooms, students and universities, doctors and hospitals, and so on. Of course normally there are some constrains, otherwise there would be no need for any kind of market. For instance an organ donor’s blood type must be compatible with the patient’s, or a student has some expectations toward the available dormitories. Finding the best match The procedure of finding the best match is relatively easy when only one side of the market has preferences over its matches, like in the mentioned student-dorm example. In that case each student apply...
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...demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.” (Heakal, 2015). Businesses today need to pay close attention to the market and the supply and demand curves to stay ahead of their competition. By watching the prices of goods and services a business can attain profits and know how to lay out their business goals. The simulation of the Good Life Management Company is a property management firm that has seven apartment complexes in the city of Atlantis. Atlantis is a well maintained city that has the picture perfect area similar to Mayberry. It has nice parks, living areas, and low crime rates. The Good Life Management Company is the only property management firm in Atlantis and has over 2,000 two-bedroom apartments and a 28% vacancy rate. They use the supply and demand curve to determine the equilibrium in the market and continue to watch the movement as the curves shift and move. Some of the microeconomic principles that the simulation showed, included supply and demand. To maximize revenue for the Good Life management company the plan was to decrease the rent amount in order to lower the percentage of vacancy to 15%. A different company arrived in town called Lintech which increased population and jobs. This in turn, made the demand for housing rise and less vacancy as well as more lease renewals. Some of the macroeconomics involved with the simulation was the fact that the government came in and created...
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...Looking back at the history of health care economics it has greatly evolved during it course and will continue to change. There are many factors that have influenced the changes of health care economics. Money and technology has definitely been the reason for the change of health care economics over the years. Money is want makes the economy evolve. There will be advancement in technology and there needs to be people are managing these to keep up with the changes. The U.S. has definitely progressed as far as influencing factors to change in new advancement of technology and medical care. Having a good financial manager in your organization will prepare for these upcoming advancements and changes. Money drives these advancements in providing successful health care industries. Most of the funding that comes to make these changes comes from insurance companies but it also affects patients. Patients have to pay for insurance and the money adds up. It can be very expensive to pay for health insurance as well as medical bills and prescription medication. Today in society we provide services in health care for money. Money creates revenue for the organization can pay for supplies, workers, and other things to keep the organization running. Before money was involved physicians would trade in their skills and work for supplies to help you live such as food, tools, cotton etc. In 1929 the first health care insurance plan was created for population. Before that time there had been some...
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...Economics Paper University of Phoenix ECO365 May 6, 2013 Economics is a tool that we use in our daily lives even if we don’t always realize it. As people we all have things that we want, and things that we need. This includes things like food, clothing, and shelter, but it is not limited to those things. In order to get those things, people have to spend money. The issue is that everything that people need and want costs money. More often than not, people do not have the money to do both so they have to decide which things are important for them to have right now. This does not only apply to families, but businesses as well. This paper will address different types of economics and some of the factors that contribute to its changes. Economics is “a social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy unlimited wants.” Economics is broken down into microeconomics and macroeconomics. Microeconomics analyzes how firms and households make decisions about how they should spend their money respectively. Microeconomics focuses on a smaller scale, hence the prefix micro-. It looks at the basic economic theory of supply and demand which tells businesses how much of a certain product they should produce, and how much they should be charging for it. Macroeconomics on the other hand studies the whole economy which includes things like unemployment rate, national income, rate of growth, gross domestic 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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...Microsoft Corporation Craig Kraemer ITT Technical Institute of Canton, MI Abstract The purpose of this paper is to advise Microsoft Corporation on how it can ensure its future success as a company in its current market. Through market analysis and examining business data. This paper will explain how the core microeconomic principles impact the sustainability of Microsoft Corporation and what actions it can take to ensure future success. Keywords: Microsoft Corporation, market analysis, microeconomics Microsoft Corporation Overview Microsoft Corporation is a leading developer of personal computer software systems and applications. Mainly known for the Windows operating system. The company also publishes books and multimedia titles, offers e-mail services, and sells electronic game systems, computer peripherals (input/output devices), and portable media players. History In 1975, Bill Gates and Paul Allen form a partnership called Microsoft, deriving the name from the words microcomputer and software. Then in 1980 Microsoft focuses on a new operating system—the software that manages, or runs, the computer hardware and also serves to bridge the gap between the computer hardware and programs, such as a word processor. It’s the foundation on which computer programs can run. They name their new operating system "MS‑DOS." On November 20, 1985, two years after the initial announcement, Microsoft ships Windows 1.0. Now, rather than typing MS‑DOS commands, you just...
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... | | |Student in Boston University's School of Management with a goal of obtaining a degree in Business. Also working to | | |obtain a Minor in Political Science in the College of Arts and Sciences. | | | | | |Relevant Classes for Major Completed: Management Systems, Financial Accounting, Managerial Accounting, Statistics | | |for Managers, Introductory Microeconomics, Introductory Macroeconomics, Organization and Behavior in Business, | | |Statistics II, Business Law, Intermediate Accounting | |Work Experience |Accelerator London London, United Kingdom Summer 2013 | | |Interned at Accelerator, a business incubator and consultancy for startups in London. Worked with Microsoft | | |SharePoint developing an intranet website for the company as well as meeting with new prospective businesses to help| | ...
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...Business Environment For the entertainment industry, since entertainment expense is not necessary for people’s daily life, economics situation is very important for Dream Works to run business. For example, during the U.S. subprime mortgage crisis, the income level of American people decreased and declined housing prices led to loan difficulties; however, the prices of food and other necessities were still increasing. Therefore, people might cut their non-essential expenditure, including entertainment. Recently, euro debt crisis still obstructs the recovery of global economics. Euro-Area unemployment rate is 12.1 percent in April, 2013, which is 0.1 percent above pervious two months. Especially, youth unemployment rate was 24 percent (Angline, 2013). Therefore, since young people are main consumers for the entertainment industry, this situation is not good for Dream Works to expand its investments or businesses. On the other hand, for the microeconomic aspect, due to globalization, Dream Works tries to add new factors of cultures into its movies or product, so it can expand its business and attract people from different countries. Because of highly economic development, China has become one of the biggest markets in the world. Dream Works also wants to capture this market. For example, it published Kung Fu Panda in 2008, the story of Chinese representative animal. Recently, Dream Works plans to create 3D shows in Macao, which combines Chinese factors (The Washington Post, 2013)...
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...Appendix…………………………………………………………………............... | 13 | Table of Figures Figure | Page | Figure 1: Availability of close substitutes for sugar…………………………………. | 3 | Figure 2: Differences of long run and short run for price hike in sugar…………….. | 4 | Figure 3: Differences between necessity goods (sugar) and luxury goods (honey)…. | 6 | Figure 4: Differences between narrow market and broad market……………………. | 8 | Figure 5: Differences between middle-income and low-income consumers with high-income consumers……………………………………………………………… | 10 | 1.0 Introduction According to the article that was chosen, the Price Elasticity of Demand for Sugar in Malaysia is focused. The group members interpreted and analysed the article based on the core microeconomic concept of Elasticity. The analysed article is attached in the Appendix. The article is mainly regarding the issue of decreasing the subsidy for sugar and also the implementation of goods and services tax (GST). However, the group members will only focused on the issue of reducing subsidy for sugar. Along with the decreased subsidising of sugar, the price of drinks will be increased at least by 10 cents per glass. The revenue will then be allocated to improve the public transportation system. Based on...
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...Licensed to: CengageBrain User Licensed to: CengageBrain User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User Economics for Today © 2012 Cengage Learning Australia Pty Limited 4th Edition Allan Layton Copyright Notice Tim Robinson This Work is copyright. No part of this Work may be reproduced, Irvin B. Tucker stored in a retrieval system, or transmitted in any form or by any means without prior written...
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