Introduction to Economics
'Economics' ????
Economics is a science to analyze the production, distribution, and consumption of goods and services.
In other words, what choices people make and how they make them while shopping. Economics is
basically analyzing the lack of resources(Scarcity) and how to allocate it among the various
consumers spread across the globe.
In other words, what choices people make and how they make them while shopping. Economics is
basically analyzing the lack of resources(Scarcity) and how to allocate it among the various
consumers spread across the globe.
The study of economics can be sub-classified in microeconomics and macroeconomics:
Microeconomics is the study of economics at a person or business level; How different people or businessmen behaved in deficiencies and governmental interventions include the concepts in microeconomics such as supply and demand, price elasticity, quantity demand and quantity supply.
Macroeconomics is the study of the performance and structure of the whole economy rather than
individual markets. Macroeconomics includes concepts such as inflation, international trade,
unemployment and national consumption and production.
individual markets. Macroeconomics includes concepts such as inflation, international trade,
unemployment and national consumption and production.
Principles Of Economics
There are several main principles of economics that are based on every theory and concept. Here is
an illustration and an instant application or an example of those principles that apply to the study of
product, distribution and use of goods and services.
an illustration and an instant application or an example of those principles that apply to the study of
product, distribution and use of goods and services.
There is a fundamental economic problem that exists because we believe that there is unlimited in the
form of humans, which can not be found in our limited resources of our world. Any good or service
non-void price is considered rare. This will cost you nothing to consume good or service, without
lacking, there will be no reason to study economics, people will consume everything they possibly can
afford and options or trade-off between goods and services Not to do.
form of humans, which can not be found in our limited resources of our world. Any good or service
non-void price is considered rare. This will cost you nothing to consume good or service, without
lacking, there will be no reason to study economics, people will consume everything they possibly can
afford and options or trade-off between goods and services Not to do.
In economics, marginal means small or one-unit change, change How much better would you be with
an additional unit? As a logical thinker, you will continue to peak growth unless the additional
(marginal) gain gained by the previous small increase is less than the additional (marginal) cost of the
previous small increase.Consider your favorite dollar menu item from your favorite fine food restaurant.
The more you spend, the more you spend $ 1 and you eat or drink with each additional one, you are
satisfying a desire at some point, you will stop consuming that item. The point at which you stop
consuming is the point at which the additional benefits you receive from eating or eating are not more
than $ 1. This is the issue on which marginal profit is equivalent to marginal cost.
an additional unit? As a logical thinker, you will continue to peak growth unless the additional
(marginal) gain gained by the previous small increase is less than the additional (marginal) cost of the
previous small increase.Consider your favorite dollar menu item from your favorite fine food restaurant.
The more you spend, the more you spend $ 1 and you eat or drink with each additional one, you are
satisfying a desire at some point, you will stop consuming that item. The point at which you stop
consuming is the point at which the additional benefits you receive from eating or eating are not more
than $ 1. This is the issue on which marginal profit is equivalent to marginal cost.
Incentives, Markets, AND PPF
It is no wonder that people respond to incentives. Promotion in economics is usually always financial
and can take place on many forms, such as prices, taxes and fees. When you see that your favorite
item goes on sale, you usually buy more. There was an incentive, such as a lower price, and you
responded by consuming more than that good or service.We naturally respond to incentives, therefore,
incentives are encouraged to specifically affect the behavior of consumers for good or service.
and can take place on many forms, such as prices, taxes and fees. When you see that your favorite
item goes on sale, you usually buy more. There was an incentive, such as a lower price, and you
responded by consuming more than that good or service.We naturally respond to incentives, therefore,
incentives are encouraged to specifically affect the behavior of consumers for good or service.
Market places are where goods and services can be exchanged between buyers and sellers. Each
market has a demand and supply curve; The quantity of good they are capable of buying and selling
on price points separately is enabled and graph below is an example of specific supply and demand curves.
The demand curve is usually tilted downward, it shows that the price of good fall will be demanded as
a price. The supply curve is the upper slope.Due to price increases, sellers are able to sell more. The
point at which two curves are to be dispersed is called market equilibrium.
market has a demand and supply curve; The quantity of good they are capable of buying and selling
on price points separately is enabled and graph below is an example of specific supply and demand curves.
The demand curve is usually tilted downward, it shows that the price of good fall will be demanded as
a price. The supply curve is the upper slope.Due to price increases, sellers are able to sell more. The
point at which two curves are to be dispersed is called market equilibrium.
The Production Possibility Frontier (PPF), also called the Production Possibility Curve(PPC), is a
graphical representation that shows all possible combinations of two objects given to limited resources
in a limited time frame. Below is a PPF between guns and butter - a point with PPF - points B, C and D
- represents the efficient use of resources, whereas A shows inefficient use of resources and point D
represents that combination of output which is not yet attainable. Nation can not be better, given
limited resources.Any point inside the PPF represents the under utilization of resources outside the
PPF and reflects the idea of deficiency. There are limited resources in the country and can not meet
unlimited demand outside the curve.
graphical representation that shows all possible combinations of two objects given to limited resources
in a limited time frame. Below is a PPF between guns and butter - a point with PPF - points B, C and D
- represents the efficient use of resources, whereas A shows inefficient use of resources and point D
represents that combination of output which is not yet attainable. Nation can not be better, given
limited resources.Any point inside the PPF represents the under utilization of resources outside the
PPF and reflects the idea of deficiency. There are limited resources in the country and can not meet
unlimited demand outside the curve.
Opportunity Cost AND Diminishing Return
On making the decision, we have to give something the benefit or value of the next best option is called
the cost of opportunity. What do you have to do to sleep in an extra hour? If you were going to work, you
left an extra hour of payment. Therefore, the opportunity to sleep in an hour was your hourly wages. ,
there are three low food units required to produce another computer.
the cost of opportunity. What do you have to do to sleep in an extra hour? If you were going to work, you
left an extra hour of payment. Therefore, the opportunity to sleep in an hour was your hourly wages. ,
there are three low food units required to produce another computer.
Diminishing returns means that whatever amount is invested by the producer, it can get very little amount
of profit compared to its investment.
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