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The meaning of a MARKET ECONOMY is in which the decision and PRODUCTION are made. The consumption of GOODS services are based on voluntary exchange in markets.

The meaning of a market economy is in which the decision and production are made. The consumption of goods services are based on voluntary exchange in markets.

Prices TEND to move up MAINLY due to increase in the SUPPLY of money, demand and cost of production.

Prices tend to move up mainly due to increase in the supply of money, demand and cost of production.

PRIVATIZATION is the transfer of OWNERSHIP from the public SECTOR (government) to the private sector (BUSINESS).

Privatization is the transfer of ownership from the public sector (government) to the private sector (business).

OLIGOPOLY is a market where the supply is controlled by a small group of companies. In this condition, the actions of one company will have a material effect on the entire market for a product.

Several characteristics of an Oligopoly:

1. Substantial barriers to ENTRY.
2. Market dominated by a few large FIRMS.
3. Differentiated products.
4. PRICE rigidity.

Oligopoly is a market where the supply is controlled by a small group of companies. In this condition, the actions of one company will have a material effect on the entire market for a product.

Several characteristics of an Oligopoly:

Opportunity cost is cost of an ALTERNATIVE that must be forgone in order to PURSUE a CERTAIN action. Put another way, the benefits you could have received by taking an alternative action. Concept of opportunity cost is central to economics because it reminds US that every day we each have choices to make and for each choice, that we make there is a second best option that we forego {that we pass up}.

Opportunity cost is cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action. Concept of opportunity cost is central to economics because it reminds us that every day we each have choices to make and for each choice, that we make there is a second best option that we forego {that we pass up}.

Advantages are:

1. People can make their own DECISIONS.
2. The government has limited CONTROL, which is GOOD for structure.
3. Provides freedoms such as ENTERPRISE, ownership, Social Welfare, Profit Earnings, Political Freedom.
4. All national resources are utilized under mixed economy.
5. It will activate the government SUPPORT and direction.

Advantages are:

Explanatory RESEARCH is research conducted in ORDER to explain any behavior in the market. It could be done through using questionnaires, GROUP DISCUSSIONS, interviews, random sampling, etc.

Explanatory research is research conducted in order to explain any behavior in the market. It could be done through using questionnaires, group discussions, interviews, random sampling, etc.

Banks and BROKERAGE FIRMS are CONSIDERED FINANCIAL centers.

Banks and brokerage firms are considered financial centers.

The price level REFERS to the MONETARY value of a GOOD or service.

The price level refers to the monetary value of a good or service.

A CONTROL in economics means a STEADY PROFIT RATE that is INCREASING.

A control in economics means a steady profit rate that is increasing.

A perfect competitive MARKET and PURE MONOPOLY market both have to FOLLOW the "law of demand".

A perfect competitive market and pure monopoly market both have to follow the "law of demand".

Generally the GOVERNMENT is very good at WASTING MONEY and resources so less SPENDING, by the government helps the economy as those resources are allocated in AREAS that are more efficient.

Generally the government is very good at wasting money and resources so less spending, by the government helps the economy as those resources are allocated in areas that are more efficient.

It assigns costs BASED on the price elasticity of demand. At higher the elasticity (ELASTIC), the LOWER the charge of fixed costs when ALLOCATED amongst products.

It assigns costs based on the price elasticity of demand. At higher the elasticity (elastic), the lower the charge of fixed costs when allocated amongst products.

A RETENTION bonus is an INCENTIVE paid to a key employee to retain them through a CRITICAL business cycle. This could be a transitional period (such as mergers and acquisitions) to ensure productivity or to meet a critical milestone. It has proven to be a very good tool in PERSUADING employees to stay.

A Retention bonus is an incentive paid to a key employee to retain them through a critical business cycle. This could be a transitional period (such as mergers and acquisitions) to ensure productivity or to meet a critical milestone. It has proven to be a very good tool in persuading employees to stay.

There are many advantages to a free market economy. They range from the moral issues to the practical issues. We will deal mainly with the practical ones.

Unprecedented INNOVATION - Free markets are wrought with inventions and the capital to research them. Countries CLASSIFIED as having a free market have been responsible for the vast majority of inventions since the 19th century.
Very high-income mobility - This means that under a free market system it is easier to move AROUND income brackets. It is just easier to become rich or poor when you are LEFT to your own devices as OPPOSED to a controlled economy where resources are allocated by the government.

There are many advantages to a free market economy. They range from the moral issues to the practical issues. We will deal mainly with the practical ones.

Unprecedented innovation - Free markets are wrought with inventions and the capital to research them. Countries classified as having a free market have been responsible for the vast majority of inventions since the 19th century.
Very high-income mobility - This means that under a free market system it is easier to move around income brackets. It is just easier to become rich or poor when you are left to your own devices as opposed to a controlled economy where resources are allocated by the government.

Consumer Demand is how much of SOMETHING that consumers are wanting. A company NEEDS to KNOW the consumer demand so they know how much of a PRODUCT to make.

Consumer Demand is how much of something that consumers are wanting. A company needs to know the consumer demand so they know how much of a product to make.

MARGINAL or INCREMENTAL COST of capital is cost of the ADDITIONAL capital raised in a given period.

Marginal or incremental cost of capital is cost of the additional capital raised in a given period.

In economics and FINANCE, marginal cost is the change in TOTAL cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good. MATHEMATICALLY, the marginal cost (MC) FUNCTION is expressed as the first (order) derivative of the total cost (TC) function with respect to quantity (Q).

In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good. Mathematically, the marginal cost (MC) function is expressed as the first (order) derivative of the total cost (TC) function with respect to quantity (Q).

An economic luxury is wasting land on pools huge garden, etc. An economic necessity is what you NEED a certain AMOUNT of SPACE (houses) to make something very NECESSARY (to LIVE in).

An economic luxury is wasting land on pools huge garden, etc. An economic necessity is what you need a certain amount of space (houses) to make something very necessary (to live in).

Well real GDP takes into account the inflation rate and thus is more ACCURATE at recording the actual INCREASE in production ACTIVITIES. THEREFORE, Real GDP is better.

Well real GDP takes into account the inflation rate and thus is more accurate at recording the actual increase in production activities. Therefore, Real GDP is better.

tax incidence refers to who ACTUALLY pays the tax.

Tax incidence can be divided into:

1. FORMAL incidence: the party LIABLE to the tax.
2. Informal incidence: party, who actually pays the tax.

The tax incidence is decided by the elasticity of DEMAND and supply for a good or service.

tax incidence refers to who actually pays the tax.

Tax incidence can be divided into:

The tax incidence is decided by the elasticity of demand and supply for a good or service.

It is called as Balance of PAYMENTS - an economic term. (BOP) measures the payments that flow between any individual country and all other countries. It is used to summarize all international economic transactions for that country during a specific time, usually a year. The BOP is determined by the country's exports and imports of GOODS, SERVICES, and financial capital, as well as financial transfers. It reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits).

It is called as Balance of payments - an economic term. (BOP) measures the payments that flow between any individual country and all other countries. It is used to summarize all international economic transactions for that country during a specific time, usually a year. The BOP is determined by the country's exports and imports of goods, services, and financial capital, as well as financial transfers. It reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits).

A tariff is NOTHING but the TAX on GOODS LEAVING or entering some place.

A tariff is nothing but the tax on goods leaving or entering some place.

This is an analysis of costs and revenue to determine whether a venture will make a PROFIT. This is IMPORTANT information in deciding on whether to make an INVESTMENT. The length of TIME required to repay the initial investment can be a critical factor.

This is an analysis of costs and revenue to determine whether a venture will make a profit. This is important information in deciding on whether to make an investment. The length of time required to repay the initial investment can be a critical factor.

INDUSTRY is a generic term, but is most commonly used as a substitute term for a manufacturer of goods such as Pepsi or Ford. The term industry can also be used to refer to a very specific group of companies.

The service industry is essentially non-good producing industries such as retail trade, wholesale trade, and the service industries. According to the U.S. Census Bureau, these companies make up 70% of the total economic activity in the United States. Good examples of the service industry include health care, HOSPITALITY & accommodations, and real estate. The financial and insurance sectors would also be included within the service industry.

Industry is a generic term, but is most commonly used as a substitute term for a manufacturer of goods such as Pepsi or Ford. The term industry can also be used to refer to a very specific group of companies.

The service industry is essentially non-good producing industries such as retail trade, wholesale trade, and the service industries. According to the U.S. Census Bureau, these companies make up 70% of the total economic activity in the United States. Good examples of the service industry include health care, hospitality & accommodations, and real estate. The financial and insurance sectors would also be included within the service industry.

A measure of the wealth is earned by nations through ECONOMIC activates all around the world.
Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income RECEIVED from other countries (notably interest and DIVIDENDS), and less similar payments made to other countries. It is also known as GNP.
It can be CALCULATED as follows:
GNI = Gross Domestic Product + NET property income from abroad.

A measure of the wealth is earned by nations through economic activates all around the world.
Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), and less similar payments made to other countries. It is also known as GNP.
It can be calculated as follows:
GNI = Gross Domestic Product + Net property income from abroad.

In principle, outsourcing makes things a LITTLE CHEAPER and increase profitability. However, some things need to be done 'in house'. For example, some EMPLOYERS (largely) outsource recruitment to key POSTS. The people making the DECISIONS may be good at picking bright people, but they often do not really know what is needed by the employer. In Britain, it often said that corporations 'hire people who are good at getting jobs but bad at doing them'. To the extent that this is true, it is damaging for all concerned.

In principle, outsourcing makes things a little cheaper and increase profitability. However, some things need to be done 'in house'. For example, some employers (largely) outsource recruitment to key posts. The people making the decisions may be good at picking bright people, but they often do not really know what is needed by the employer. In Britain, it often said that corporations 'hire people who are good at getting jobs but bad at doing them'. To the extent that this is true, it is damaging for all concerned.

The study of the OVERALL ASPECTS and workings of a national economy is such as income, OUTPUT, and the interrelationship among diverse economic sectors. It is the study of all aspects of the economy. It is DIFFERENT from microeconomics, which studies how individual entities (such as people, FAMILIES, or even corporations) fit in the economy.

The study of the overall aspects and workings of a national economy is such as income, output, and the interrelationship among diverse economic sectors. It is the study of all aspects of the economy. It is different from microeconomics, which studies how individual entities (such as people, families, or even corporations) fit in the economy.

The advantage of CAPITALISM is that the GOVERNMENTS have limited CONTROL over other BUSINESS.

The advantage of capitalism is that the governments have limited control over other business.

It generally refers to the COMBINATION of COMMERCIAL banking and investment banking. It is a supermarket for both wholesaler and retailer FINANCIAL services as it OFFERS a wide RANGE of financial services.

It generally refers to the combination of commercial banking and investment banking. It is a supermarket for both wholesaler and retailer financial services as it offers a wide range of financial services.

Packets per second (pps) are a measure of throughput for network DEVICES such as bridges, routers, and switches. It is a reliable measurement only if all packet sizes are the same. Vendors will OFTEN rate their equipment based on pps, but MAKE SURE comparisons are made using the same packet sizes.

Packets per second (pps) are a measure of throughput for network devices such as bridges, routers, and switches. It is a reliable measurement only if all packet sizes are the same. Vendors will often rate their equipment based on pps, but make sure comparisons are made using the same packet sizes.

When a GOVERNMENT spends more than it receives in taxes, it runs a budget deficit, which is usually covered by issuing debt obligations to domestic and/or international investors. In the US, these obligations are Treasury BILLS, Treasury notes, and Treasury bonds. The total outstanding amount of such obligations CONSTITUTES a National Debt.

When a government spends more than it receives in taxes, it runs a budget deficit, which is usually covered by issuing debt obligations to domestic and/or international investors. In the US, these obligations are Treasury bills, Treasury notes, and Treasury bonds. The total outstanding amount of such obligations constitutes a National Debt.

Tax cuts improve the economy by giving the people more spending POWER and higher consumer confidence, which LEADS to them spending more of all of their income which leads to more jobs, more BUSINESS investment in more EFFICIENT TECHNOLOGIES, and ultimately higher GDP growth.

Tax cuts improve the economy by giving the people more spending power and higher consumer confidence, which leads to them spending more of all of their income which leads to more jobs, more business investment in more efficient technologies, and ultimately higher GDP growth.

Collateral Management is a function to MANAGE collateral EFFECTIVELY. It provides INTERFACE to enter collateral data, and it has a master data of collateral descriptions and types. It maintains customer, collateral, and CREDIT ACCOUNT relationships so the amount of idle collateral can be determined. It is usually packaged in an application or part of the core-banking application.

Collateral Management is a function to manage collateral effectively. It provides interface to enter collateral data, and it has a master data of collateral descriptions and types. It maintains customer, collateral, and credit account relationships so the amount of idle collateral can be determined. It is usually packaged in an application or part of the core-banking application.

• It refers to the study of feasibility of a project in terms of its total ECONOMIC cost and total economic BENEFITS.
• it MEANS to compare total cost will total BENEFIT if we add external cost with private cost, it’s called total social cost if we add external benefit with private benefit, called total social benefit.

PRICE Mechanism

• Price mechanism is the point, which equilibrates supply and demand within a market. It is a mechanism of PRICING. The price mechanism is one, which allows the prices of GOODS and services to be decided by the interplay between supply and demand. There is no centralized price fixing.
• The price mechanism is the concept that the free market, when left to its own DEVICES, will FORMULATE fair prices of the goods or services on its own by the natural laws of supply and demand.

Price Mechanism

Strategic management used to play a different after the SECOND WORLD War. Strategic plans of the past usually range 3 to 5 YEARS. Some companies could even have plans for 10 good years. That is not possible today given rapid evolution of our society.

Strategic management used to play a different after the Second World War. Strategic plans of the past usually range 3 to 5 years. Some companies could even have plans for 10 good years. That is not possible today given rapid evolution of our society.

The market VALUE of all final goods and SERVICES produced at full employment. There is no more RESOURCES to be DEPLOYED. At this STAGE if there is further expansion of output, then it will lead to inflation.

The market value of all final goods and services produced at full employment. There is no more resources to be deployed. At this stage if there is further expansion of output, then it will lead to inflation.

No indifference curve can intersect because all POINTS on indifference curve are RANKED EQUALLY PREFERRED and ranked EITHER or less more preferred than every other point on the curve.

No indifference curve can intersect because all points on indifference curve are ranked equally preferred and ranked either or less more preferred than every other point on the curve.

Project feasibility study is REQUIRED to MAKE a decision whether the project PROPOSAL is technically and economically feasible. After FINALIZATION of the project feasibility report by the experts (technical & economical), the decision for going ahead for PREPARATION of Detailed Project Report (DPR) for the project proposal.

Project feasibility study is required to make a decision whether the project proposal is technically and economically feasible. After finalization of the project feasibility report by the experts (technical & economical), the decision for going ahead for preparation of Detailed Project Report (DPR) for the project proposal.

It’s a economics for decision making where we have to be very optimize and IMPLEMENT those situation which will be HELPFUL in profit maximization in our BUSINESS effectively and efficiently.

Since the microeconomics explains the concepts like demand, production, SUPPLY ANALYSIS, so that it maximizes the profit.

It’s a economics for decision making where we have to be very optimize and implement those situation which will be helpful in profit maximization in our business effectively and efficiently.

Since the microeconomics explains the concepts like demand, production, supply analysis, so that it maximizes the profit.

There are 4 MAIN TYPES of market economies. They are also KNOWN as Economic Systems. They are

• FREE Market,
• MIXED Market,
• Command and
• Traditional Economy.

There are 4 main types of market economies. They are also known as Economic Systems. They are

Whenever we have touched on the pricing of PRODUCTIVE factors, we have signified the prices of their unit services, i.e., their rents. In order to set aside CONSIDERATION of the pricing of the factors as "wholes," as embodiments of a series of future unit services, we have been assuming that no businessmen purchase factors (whether land, labor, or capital GOODS) outright, but only unit services of these factors. This assumption will be continued for the time being. Later on, we shall drop this restrictive assumption and consider the pricing of "WHOLE factors."

Whenever we have touched on the pricing of productive factors, we have signified the prices of their unit services, i.e., their rents. In order to set aside consideration of the pricing of the factors as "wholes," as embodiments of a series of future unit services, we have been assuming that no businessmen purchase factors (whether land, labor, or capital goods) outright, but only unit services of these factors. This assumption will be continued for the time being. Later on, we shall drop this restrictive assumption and consider the pricing of "whole factors."

Foreign EXCHANGE RISK is also known as hedging. Those people who are risk averse follow this kind of transaction to save firm from UNEXPECTED loses. Since exchange rate can change in either way i.e. it can depreciate or appreciate, company can gain at the same time but to mitigate loses they engage into FORWARD contracts.

Foreign exchange risk is also known as hedging. Those people who are risk averse follow this kind of transaction to save firm from unexpected loses. Since exchange rate can change in either way i.e. it can depreciate or appreciate, company can gain at the same time but to mitigate loses they engage into forward contracts.

Demand estimation is predicting future demand form a product. The information regarding future demand is essential for PLANNING and scheduling PRODUCTION, purchase of raw MATERIALS, acquision of finance and ADVERTISING.
The various techniques of demand estimation: 

1. Survey METHOD
2. Statistical Method.

Demand estimation is predicting future demand form a product. The information regarding future demand is essential for planning and scheduling production, purchase of raw materials, acquision of finance and advertising.
The various techniques of demand estimation: 

There are THREE types of factor of PRODUCTION.

1. Land.
2. LABOR
3. Capital.

There are three types of factor of production.

FIRM is an organization owned by one or jointly by a few or many PEOPLE, engaged in a productive ACTIVITY, with a definite AIM.

Firm is an organization owned by one or jointly by a few or many people, engaged in a productive activity, with a definite aim.

Managerial Decisions/ Decision Analysis is the Process of selecting the best out of alternative opportunities, open to the firm.
To arrive at a business decision, the FOUR main phases are:

1. Determine and define the objective.
2. Collection of information regarding economic, social, political and TECHNOLOGICAL environment and foreseeing the NECESSITY and occasion for decision.
3. Inventing, developing and analyzing possible courses of action.
4. Selecting a particular course of action from the AVAILABLE alternatives.

Business environment comprises of the economic, social, political and technological environment.

Managerial Decisions/ Decision Analysis is the Process of selecting the best out of alternative opportunities, open to the firm.
To arrive at a business decision, the four main phases are:

Business environment comprises of the economic, social, political and technological environment.

Critical MANAGERIAL DECISION making is the key to superior performance at work. One has to REFER to critical DATA, past RECORDS and performance metrics and analysis before making decisions. 

Critical managerial decision making is the key to superior performance at work. One has to refer to critical Data, past records and performance metrics and analysis before making decisions. 

According to MILLER, “Firm is an organisation that buys and hires RESOURCES and SELLS goods and services”. Lipsey has defined as “firm is the unit that employs factors of production to produce commodities that it sells to other FIRMS, to households, or to the GOVERNMENT.”

According to Miller, “Firm is an organisation that buys and hires resources and sells goods and services”. Lipsey has defined as “firm is the unit that employs factors of production to produce commodities that it sells to other firms, to households, or to the government.”