in constructing a CPI?
To give an accurate measure of inflation (1), by reflecting the importance of different products to consumers (1). (ii) Explain possible reasons why the weights for alcohol and tobacco and transport changed between 1992 and 2008.  Alcohol and tobacco prices may have risen...
programmes will also be provided to explain key concepts.
Module 1 covers 4 units and after completion of these units, students will be able to undestand the basic economic problems of scarcity choice and opportunity cost, the productionpossibilitycurves and the different allocative mechanism...
WHAT IS ECONOMICS?
Economics is the study of how society uses scarce resources to produce valuable commodities and distribute them among different people (or)
Economics is a social science, which studies human behavior in relation to optimizing allocation of...
emphasized as desirable goals. The productionpossibilitiescurve model is introduced to illustrate these important concepts. Using this model, the concepts of opportunity costs and increasing opportunity costs, unemployment, growth, and present vs. future possibilities are all demonstrated. Additional...
1. Collect from your national news paper an article on some micro economic issue. Explain why you choose it and the relevance of it to the course.
Ans: IZA DP No. 565
Survival in a Concentrating Industry:
By the end of this chapter, students should understand:
¬ how economists apply the methods of science.
¬ how assumptions and models can shed light on the world.
¬ two simple models—the circular flow and the productionpossibilities frontier.
¬ the difference between microeconomics and macroeconomics...
contact with the people who live far away from them. In the same way, biologists use human body models as their tools to explainhow internal organs work; engineers build models to see how the system works; also, economists use models as their tools to help them in dealing with problems or historical data...
1 2 3 4 5 6 7 8 9
Nature and Scope of Economics Basic Economic Problems Theory of Consumer Behaviour Demand and Supply Equilibrium Price Production Cost and Revenue Market Structure and Pricing Marginal Productivity Theory of Distribution
1 33 47 77 103 117 143 161 183 205 229 247
of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2.
a．Graph out the productionpossibilities frontier:
b．What is the opportunity cost of apples in terms of bananas?
In economics, a production–possibility frontier (PPF), sometimes called a production–possibilitycurve, production-possibility boundary or product transformation curve, is a graph that compares the production rates of two commodities that use the same fixed total of...
Comparative Advantage: The Ricardian Model 7
Specific Factors and Income Distribution
Resources and Trade: The Heckscher-Ohlin Model
The Standard Trade Model
Economies of Scale, Imperfect Competition, and International Trade 35
International Factor Movements
Overview of Section II: International...
scarcity and the inevitability of choices at all levels (individual, firms, governments)
– Opportunity cost
– Basic questions of what will be produced, how and for whom
Human beings, in order to survive need a lot of things. Some of these things are very important for our existence. For...
Before delving into the substance and details of economics, it is helpful to have an overview of how economists approach the world. This chapter discusses the field’s methodology. What is distinctive about how economists confront a question? What does it mean to think like an economist?
Q.1 Price elasticity of demand depends on various factors. Explain each factor with the help of an example.
Meaning and Definition
The term elasticity is borrowed from physics. It shows the reaction of one variable with respect to a change in other variables on which it is dependent. Elasticity is...
colleagues who have directly or indirectly lent their helping hands. I am very much grateful to Mr. Saumya Gupta (Managing Director), Mr. V.R. Damodaran (Production Editor) and Saba Khan (Development Editor) of M/s New Age International (P) Limited, New Delhi for taking prompt and sincere initiative for publishing...
Economics is the study of the economy. It involves study of all aspects of production, consumption, exchange and distribution. But it is not confined to only these four; there are many other aspects which take importance in the study economics which are economizing scare resources and stabilization...
* Define and explain a range of core economic terms and concepts, including economic surplus, opportunity cost and sunk cost
Economic decision – any decision whereby securing something o value means going without some other thing of value
Economics – the study of how people make choices...
MICROECONOMICS – I
UNIT 1 Introduction to Microeconomics UNIT 2 Theory of Demand and Supply UNIT 3 Consumer Behavior UNIT 4 Production Function 46-62 30-45 12-29 1-11
UNIT 5 Analysis of Costs
Dr. J. Mahender Reddy Vice Chancellor IFHE (Deemed to...
economics and discusses some of the main concepts that underpin the economic method of analysis. We begin by considering the nature of microeconomics and how it differs from macroeconomics. Some fundamental economic concepts are introduced in this topic, which will form an essential foundation to your future...