Economics

MACROECONOMICS

ASSIGNMENT 1

Economics- Learning for a Manager

DEFINITION OF ECONOMICS:

Economics can be defined as the science of how scarce resources are allocated,it can also be seen as the study of the behavior of human beings in a world of scarce resources and also the impacts on a system that deals with producing,distributing and consuming material goods and services.

In other words economics helps us in studyin how societies use the resources that are scarce, to produce valuable commodities and then distributing them to different people.

Managerial economics:

Management is defined as the way of allocating a firm’s scarce resources and then using them effectively to reach the objectives of the firm. Managerial economics as a whole deals with the application of management and economics together to achieve certain objectives.

Now economics can be broadly classified in two different categories that represent the two different domains that are affected by economics.

Microeconomics:

This deals with the behaviour of individual components like individuals,industries,firms and households.Studies how individual prices are set and consider market.Studies efficiency and properties of the markets.

Macroeconomics:

This deals with the functioning of the whole market or economy.It alsso tries to examine how the level and growth of output are determined,analyses inflation,unemployment and also considers the total money supply and investigates why some markets do well while others remain constant.

What does economics deals with?

CONCEPT OF RATIONALITY AND IRRATIONALITY

Being rational means taking decisions on the basis of some facts and figures and collecting the required data...