Economics

The study of individual firms and households, their market and industry interactions

To analyse the decision made by individual firms or how certain factors affect a specific good’s market

The study of overall economy of a nation or world and working and problems of the economy by looking at GDP growth and unemployment

Analyse factors affecting economic fluctuations like recession or causes of economics growth in countries or regions

• Specific government roles
• Predictable Policy framework (government being predictable in decision making process)
• Rules of law (ex: property rights)
• Reliance on market (freely determined prices)
• Good incentive (ex:patents)

Value of Next best forgone alternative to making a choice

• Improvement in
• -satisfaction
• -production
• -income

An individual or group being able to produce one good at lower opportunity cost than others

Relationship between price of a good and the quantity demanded

Relationship between goods price and quantity supplied

Situation in which quantity demanded and quantity supplied are equal

• The measure of the sensitivity of quantity demanded to price change
• %of quantity demanded/ % of price change

• The measure of the sensitivity of change in supply quantity to price change
• % of change in quantity if supply/ % of price change

• Prices are signals
• Prices provide incentive
• Prices affect income distribution