developed through years of experience in the market. It is impossible to imitate such an effective distribution system by the new entrants. Question 2 Elasticity of Demand There are four general determinants of elasticity of demand. Only three are relevant; the fourth is time. This means that the longer the time period the higher the elasticity
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CHAPTER 1 | Economics: Foundations and Models Chapter Summary and Learning Objectives 1.1 Three Key Economic Ideas (pages 4–8) Explain these three key economic ideas: People are rational; people respond to economic incentives; and optimal decisions are made at the margin. Economics is the study of the choices consumers, business managers, and government officials make to attain their goals, given their scarce resources. We must make choices because of scarcity, which means that although
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Costs . . . . . . . . . . . . . . . . . . Positive Economics versus Normative Economics . . The three Problems of Economics Organization . . The ten Principles in Economics . . . . . . . . . . . Economics as a Science . . . . . . . . . . . . . . . . How to read graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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mic AS ECONOMICS STUDY GUIDE UNIT ONE Markets: How They Work & Why They Fail For Edexcel Syllabus: updated 2010 CONTENTS Page Reading list 3 Syllabus 4 SECTION A – HOW THEY WORK 1. The Basic Economic Problem 8 2. Specialisation and the Division of Labour 10 3. Production Possibility Frontiers 12 4. Types of Economy 15 5. Positive & Normative Statements
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manager aspiring for good leadership and achievement of organizational objectives be equipped with relevant economic principles and applications. Unfortunately, a gap has been observed in this respect among today’s managers. It is therefore the aim of this course to bridge such gap. THE COURSE OBJECTIVES On completion of the requirements of this course, students and managers alike will be expected to: 1. Understand the relative importance of Managerial Economics; 2. Know how the application of the
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The Central Problem of Economics Needs and Wants Needs are the things we can’t survive without. They are necessities of life e.g. food, clothing, shelter, water, basic wealth and basic education. Wants are the things we desire to have or own but we can survive without them e.g. cell phones, TVs, oars, radios, entertainment etc. Our want are unlimited and we never seem to be satisfied with what we have. It is people’s wants rather than their needs we provide the motive for economic activity
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we want? - Our wants exceed our resources. Economics and Opportunity Cost Economics – the study of how best to allocate scare resources among competing users. Opportunity cost – The value or price of the most desired goods and services that are foregone in order to obtain something else. - The next best alternative that you give up. Factors of Production Resource inputs used to produce goods and services. The four resources: - Labor, land, capital and entrepreneurship Resources are factors
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P1 – Explain the effects of changes in the economic environment on a selected business. D1 – Evaluate the impact of changes in the economic environment on a selected business In this part of the assignment I am going to be researching the economic factors of Barclays as a business. The Business cycle All of these factors have an enormous impact on my selected business (Barclays) as the economy goes from growth and decline. As well as many others, Barclays is majorly affected as it is in the
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resources to the desired areas to produce goods and services that are demand by society. It is to maximise profit and satisfaction. II. 3 fundamentals questions 1. What to produce Goods/ services that are demanded by society 2. How to produce? Cost effective technologies (reduced the cost and not sacrifice the quality) 3. For whom to produce? Target, people who have the purchasing power different groups III. Goods and services Goods: Anything that we can touch (=tangible)
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economics can be defined as: ‘...A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants’ (Investopedia) ‘...The social science that deals with the production, distribution, and consumption of goods and services and the theory and management of economies or economic systems.’ (American Heritage Dictionary) ‘... The study of how society uses its scarce resources.’(The Economist) ‘...the branch
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