This paper aimed to show how both macroeconomics and microeconomics plays a role in the overall success of an organization. The key decisions confronting the firm right from inception to operation to growth are themes business, economics can explore and which are useful for entrepreneurs and business leaders. With increasing globalization, the fact that firms now operate in a global arena means that they must have the knowledge of how macroeconomic trends affect macroeconomic decisions.
In economics, demand refers to the product, which an individual is willing to purchase for a specific amount of money. When looking at economics the first thing that comes to mind is supply and demand. In our everyday life, we use different products from toilet
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Elasticity is a when there is a demand in price change and the quantity of the products increases by the consumers. Most consumers like to compare prices while shopping, for instance, when coupon shoppers see prices decrease, and they tend to buy more of the products. However, if the prices increase they spend less money. For example, if the state decides to raise the taxes on cigarette, the prices of cigarettes prices will increase, most chain smokers are addicted and they have no substitutions, the other alternative they have is to keep buying, and the demand will be inelasticity. Another example is clothing. Consumers can choose the type of clothing they want and the price. Price elasticity of demand is always negative, which causes prices and quantity to move in different …show more content…
It examines the characteristics of the economy output, employment, inflation, and the interest rate. Few of macroeconomics indicators includes inflation, public deficits, and unemployment. “Macroeconomic indicators share important characteristics that set them apart from other indicators, such as those covering human rights or government transparency (e.g. Cooley and Snyder 2015).” Macroeconomics focuses on the economy between businesses and individual household. When the economy is operating at its natural level of employment, there could be an increase in unemployment. “The rate of unemployment consistent with the natural level of employment is called the natural rate of unemployment.” When Business experiences a decrease in production, it may generate additional unemployment. Another goal of macroeconomic is economic growth, which is defined as a long-run process that occurs as an economy’s potential output increase.
Conclusion
The conclusion of the research in economics, both macroeconomics and microeconomics have a role they play to help an organization to be successful. Most people have a misconception about economics. The economy places a big part of our everyday life whether it be from purchasing a house or going into business. Customers play a big part in the economics because they help determine the direction that the economy is
Let’s begin with the theory of Scarcity. The concept of demand is directly relatable to the scarcity of an item. Let’s look at Jackson Pollock’s work for example. If only 20 paintings were available created by Jackson Pollock, there would be a much greater demand than if you could purchase them easily at your local art gallery.
Economic indicators are Governmental statistics, released on a regular basis, which indicate the growth and health of a country. Economic indicators often affect and influence the value of a country's currency. The Trade Deficit, the Gross National Product (GNP), Industrial Production, the Unemployment Rate, and Business Inventories are examples of economic indicators. We will be dealing with four specific indicators: interest rate, inflation, unemployment, and employment growth as well as Real Gross Domestic Product (GDP). Real GDP is so called because the affects of inflation and depreciation are accounted for in the figures.
The trends in unemployment affect three important macroeconomics variables: 1) gross domestic product (GDP), 2) unemployment rate, and 3) the inflation rate.
The more responsive the consumers are to the price change, it means that it is more elastic. Disney tickets would be considered inelastic because the quantity is insensitive to the change in price. There are multiple microeconomic concepts in this article, such as price surge, price discrimination, supply and demand, and elasticity. As stated earlier, Disney is not actually price surging like Uber does. They are price discriminating in the summer, making their tickets inelastic because demand is high, kids are out of school, and they are insensitive to price.
The law of demand states that if everything remains constant (ceteris paribus) when the price is high the lower the quantity demanded. A demand curve displays quantity demanded as the independent variable (the x-axis) and the price as the dependent variable (the y-axis). http://www.netmba.com/econ/micro/demand/curve/
Critically assess the extent to which “the ideas of economists” might improve the performance of an organisation of your choice.
Elasticity is the responsiveness of demand or supply to the changes in prices or income. There are various formulas and guidelines to follow when trying to calculate these responses. For instance, when the percentage of change of the quantity demanded is greater then the percentage change in price, the demand is known to be price elastic. On the other hand, if the percentage change in demand is less than then the percentage change in price; Like that of demand, supply works in a similar way. When the percentage change of quantity supplied is greater than the percentage change in price, supply is know to be elastic. When the percentage change of quantity supplied is less then the percentage change in price, then the supply then demand is known to be price inelastic.
"Capacity is the output that an operation (or single process) can deliver in a defined unit of time. Demand is the quantity of products and services that customers request from an operation or process at any point in time".
The study of economics is important to everyone. Financial decisions affect everyone in their day-to-day routines. Economics is the study of how society manages its scarce resources (Mankiw, 2012). Macroeconomics is the study of economy wide phenomena, including inflation, unemployment, Gross Domestic Product, and economic growth (Mankiw, 2012). Macroeconomics is important because, it is how all of us relate into markets and economies. Many news articles today are centered on the economy and current events. One of these articles lends itself to many economic principles and ideas. Even though there are many important topics not covered in the article, the article titled, "You Are What You Owe" in Time, encompassed many general economic principles as well as the many macroeconomics indices illustrated in the article.
=== A study of economics in terms of whole systems especially with reference to general levels of output and income and to the interrelations among sectors of the economy is called macroeconomics. Macroeconomics is concerned with the behavior of the economy as a whole—with booms and recessions, the economy’s total output of goods and services and the growth of output, the rates of inflation and unemployment, the balance of payments, and exchange rates. Macroeconomics deals with the increase in output and employment over long period of time—that is economic growth—and with the short-run fluctuations that constitutes the business cycle. Macroeconomics focuses on the economic behavior and policies that effect consumption and investment, trade balance, the determinants of changes in wages and prices, monetary and fiscal policies, the money stock, the federal budget, interest rates, and national debt. In brief, macroeconomics deals with the major economic issues and problems of the day.
That is, it is sensitive to price change, and also to the quantity demanded. This means that if many people are consuming a good, the demand is greater than if less people are consuming the good. To further clarify, take the example of attending college. In an environment where most of an individual's peers are going to attend college, the individual will see college as the right thing to do, and also attend college to be like his peers. However, in an environment where most of an individual's peers are not going to attend college, the individual will have a decreased demand for college, and is unlikely to attend.
Economics is defined as is the social science that studies the production, distribution, and consumption of goods and services. It primarily deals with the exchange of value and that labor or human effort is the source of all value. The field may be divided in other ways, most commonly microeconomics vs. macroeconomics. Microeconomics examines the economic behavior of individual units, including businesses and households, and their interactions through markets, given scarcity and government regulation. Macroeconomics examines an economy as a whole "top down" with a view to understanding interactions between the broadest aggregates such as national income and output, employment and inflation and broad aggregates like total consumption and investment spending. Econometrics is the application of statistical techniques to measuring economic phenomena.
What is Microeconomics? This question was left unanswered when I initially enrolled in this course. Microeconomics is the social science that studies the implications of individual human actions, specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how individuals create more efficient or more productive decisions, and how individuals best coordinate and cooperate with one another. Microeconomics does not try to explain what should happen in a market, but instead only explains what to expect if certain conditions change. For instance, If the price of the new iPhone 8 is higher than the previous model will the consumer buy it? There are several elements that will play into getting an answer for this question, but gives you a general idea of what microeconomics entails.
Macroeconomics is the study of the economy as a whole, which looks at economic growth, unemployment and inflation. (Dobson and Palfreman, 1999) Government macroeconomics objectives can dividend into
The second portion of macroeconomics is macroeconomic fundamentals. Consumer price index was in the fundamentals to talk about food and beverages housing , transportation metal gear ,and recreation ,education and communication and other goods and services that may be overlooked we talked October our temperatures in the basket market economy and we discuss the percentage of change in income