I do not own any rights. This is from my school book. Chapter 1 – What Is Economics? A Definition of Economics Our inability to satisfy all our wants is called scarcity. The choices that we make depend on the incentives that we face. An incentive is a reward that encourages or a penalty that discourages an action. Economics is the social science that studies the choices that individuals‚ businesses‚ governments and entire societies make as they cope with scarcity and the incentives that
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WHAT IS INFLATION? INFLATION IS THE LONG TERM RISE IN THE PRICES OF GOODS AND SERVICES CAUSED BY THE DEVALUATION OF CURRENCY. CAUSES OF INFLATION: • So what exactly causes inflation in an economy? There is not a single‚ agreed-upon answer‚ but there are a variety of theories‚ all of which play some role in inflation: 1. THE MONEY SUPPLY • Inflation is primarily caused by an increase in the money supply that outpaces economic growth. • Ever since industrialized nations moved away from the gold
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Complete first part of slideshow Aggregate Expenditure (AE); AE = C + I + G + X – IM I‚ G and X: autonomous expenditures Do not change with change in national income (Y) C and IM: induced expenditures Change with changes in national income (Y) Simple case: Only at C and I No government No foreign sector AE = C + I [C] Keynesian consumption function: Relationship between C and variables that influence it In simple case: C is influenced by disposable income Desired Consumption Expenditure
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Week 3 Homework 1. Some Classical and Monetarist economists claim that inflation is always a "monetary phenomenon." What do they mean by this claim and are they correct? They use the equation MV=PQ to show that any change in the amount of money in a system will change the price level. I believe that history shows they are correct‚ if the Fed reserve started printing a bunch of money without taking any out of circulation‚ then prices would go up for everything. 2. How can a higher price of oil create
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Death is inevitable. With the impending ending comes a phase of self reflection and the questioning of past actions‚ or lack thereof. In both poems‚ “When I Have Fears” and “Mezzo Cammin‚” the speakers recount the passage of their time‚ puzzled at how they had let opportunity slip away from their grasp. Yet it is in their outlooks on how to death with this revelation that differ. Keats offers a mournful and despondent outlook on the rest of his days‚ fearing that he has already carved out a meaningless
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Chapter 3 Consumption and Investment Consumption (C) and investment (I) Since we are more concerned with two sector model in our course‚ we will discuss about consumption and investment. In a two sector model‚ a simple but an imaginary assumption of no government and no foreign trade is made. Here Yd =C+S or Yd =AD (aggregate demand) This also implies that C+S=C+I Consumption Introducing you with: (Think yourself in advance) What is consumption? What is consumption function
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2011 By : - Rini Bhattacharya Rashi Dawar Nehal Mittal Abhishek Swami Gaurav Yadav Sagnik Ghoshal Micro Small & Medium Enterprise Index: - Definition: - (a) Enterprises engaged in the manufacture or production‚ processing or preservation of goods as specified below: i) A micro enterprise is an enterprise where investment in plant and machinery [original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide ii) A small enterprise
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Chapter 6 After reading this chapter‚ you should be able to: LO6-1 Use elasticity to describe the responsiveness of quantities to changes in price and distinguish five elasticity terms. LO6-2 Explain the importance of substitution in determining elasticity of supply and demand. LO6-3 Relate price elasticity of demand to total revenue. LO6-4 Define and calculate income elasticity and cross-price elasticity of demand. LO6-5 Explain how the concept of elasticity makes supply and demand analysis more
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Indian Insurance Industry: New Avenues for Growth 2012 With an annual growth rate of 15-20% and the largest number of life insurance policies in force‚ the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources‚ the insurance and banking services’ contribution to the country’s gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant
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Definition The economic environment consists of external factors in a business’ market and the broader economy that can influence a business. You can divide the economic environment into the microeconomic environment‚ which affects business decision-making such as individual actions of firms and consumers‚ and the macroeconomic environment‚ which affects an entire economy and all of its participants. Many economic factors act as external constraints on your business‚ which means that you have little
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