AKshay
MS-03
Management Programme
ASSIGNMENT SECOND SEMESTER 2013
MS-03: Economic and Social Environment
ASSIGNMENT
Course Code
:
MS-03
Course Title : Economic and Social Environment
Assignment Code Coverage
: MS-03/TMA/SEM-II/2013 : All Blocks Note: Attempt all the questions and submit this assignment on or before 31st October, 2013 to the coordinator of your study centre.
1. “All modern economies have certain economic problems to deal with”. Examine and illustrate the statement.
Solution :
What is an Economic Problem?
In a broad sense, an economic problem can be defined as an abnormal and irrational or irrelevant behavior by socio-economic units and market components. An economic problem can be triggered by any case or causes or even another economic problem. Though there is no scale that measures the level of abnormal behavior, an economic problem is said to have arisen when the abnormal behavior by economic components tend to affect several institutions.
In this discussion, market components signifies 3 major constituents of the market, namely, demand, supply and price. Though the magnitude of all the three components is small, it plays a highly influential role at a macro level. The term institute defines individuals, organizations, companies, government, governing bodies and any unit which is capable of conducting an economic activity.
Meaning
There are several definitions that elaborate upon an economic problem. However, the simplest definition that is accepted world wide is that a problem is an abnormality in economic institutions or constituents that in the view of society at large has a negative influence on earning and spending. The real gist is thus
Management Programme
ASSIGNMENT SECOND SEMESTER 2013
MS-03: Economic and Social Environment
ASSIGNMENT
Course Code
:
MS-03
Course Title : Economic and Social Environment
Assignment Code Coverage
: MS-03/TMA/SEM-II/2013 : All Blocks Note: Attempt all the questions and submit this assignment on or before 31st October, 2013 to the coordinator of your study centre.
1. “All modern economies have certain economic problems to deal with”. Examine and illustrate the statement.
Solution :
What is an Economic Problem?
In a broad sense, an economic problem can be defined as an abnormal and irrational or irrelevant behavior by socio-economic units and market components. An economic problem can be triggered by any case or causes or even another economic problem. Though there is no scale that measures the level of abnormal behavior, an economic problem is said to have arisen when the abnormal behavior by economic components tend to affect several institutions.
In this discussion, market components signifies 3 major constituents of the market, namely, demand, supply and price. Though the magnitude of all the three components is small, it plays a highly influential role at a macro level. The term institute defines individuals, organizations, companies, government, governing bodies and any unit which is capable of conducting an economic activity.
Meaning
There are several definitions that elaborate upon an economic problem. However, the simplest definition that is accepted world wide is that a problem is an abnormality in economic institutions or constituents that in the view of society at large has a negative influence on earning and spending. The real gist is thus