ECONOMIC REPORT FOR NEW RECRUITS

Economic Report for New Recruits

Tables of Content

Task 13

Introduction3

Types of Economics4

Task 26

Individual Demand Curve6

Market Demand Curve7

Short Run Cost and Output Decision8

Long Run Cost and Output Decision9

Task 39

Demand and Supply9

A.How an equilibrium price and equilibrium quantity is achieved?11

B.What are the effects of excess supply on market equilibrium?11

C.What are the effects of excess demand on market equilibrium?12

Task 413

Keynesian economics13

Monetarist economics15

Task 517

Introduction17

Economics17

Commodities18

Resources18

Scarcity18

Types of Economics18

Demand and Supply19

State of Equilibrium20

Disturbed Market20

Market structures20

?Perfect Competition20

?Monopolistic Competition21

?Oligopoly21

?Monopoly21

Keynesian and Monetarist Economics21

Difference between Keynesian and Monetarist22

Reference23

Economic Report for New Recruits

Task 1

Introduction

A branch of social sciences that studies how the goods and services are produced in a society using scare resources to cater the need of present and future is called Economics. Economics is basically study of wealth and includes the study of every day to day activity to the economy of the countries.

Scare resources have always been a major concern for the world, as on this planet there is only limited amount of resources are available, which, if not utilized wisely and appropriately could end. To avoid any such situation the basic definition of economics and many economists believe that scare resources should be utilized properly only to make such products which are really necessary for living, that is why choices are required for scarce resources. People should choose what is necessary for them and what is not? Choices limit both the society and individual to fulfill their one desire and leave others. (Blaug, Pp. 345)

In this context often people called economics as the study of scare resources, as if scarcity would not limit us to choose one over the other product or services than people would have consumed all the available resources.

Wherever the choices and scarcity exists, it also include cost factor in it, which is sometime also called as opportunity cost. There is an option that a person might give up an option as the cost of any of his choice. For instance, if one gave up the option of doing work to read this report, the cost of reading this report is the satisfaction one would have received doing his work, as this report makes help people to understand the key concepts of economics which a person can utilize in his work and can increase his efficiency. However, this is just an example to help readers understand what the cost of a choice is.

Mostly people, particularly economist makes choices using simple ideas of economics by just comparing the benefits of different available options, to choose the best suitable option. This concept of opportunity concept is best to describe the relationship between scarcity and choices. (Kirman, Pp. 126-139)

Types of Economics

The word economic is too broad as by its definition that it is the study of wealth, that is why economics has been divided into two different categories: “Micro” and “Macro.”

Microeconomics is generally the study of business and persons' conclusions whereas macroeconomics examines at higher up homeland and government decisions. Macroeconomics and microeconomics, and their broad array of inherent concepts, have been the subject of a large ...