How are we involved in economics?
We the people are involved in economics when we spend or receive money. It is determined by the movement of money between individual people or groups of people like a corporation.
What are three role of the main economic group?
- The producers
- The consumers
- The government
The study of Economics is so important to comprehend how the economics work, and how it affects all parts of our daily lives. At least learn the basic of economic concepts. By doing that, it will help you understand how the world works.
Studying economics helps you make a better decision running a business and making more profit.
Supply Vs Demand
Take a luxury brand handbag like Louis Vuitton maker that sells handbags and sells them at a price of $1,540 for the tote bag. If the price is $500 it would get orders of 10,000 per month. But the brand produces only 1000 quantities every month and it receives the same number of orders every month and it clears its inventory in a month itself. I use to be a buyer for a large department store so why would I want to lower my price when I can only produce 1,000 and I empty my stock. Open to buy more merchandise.
$500 x 10,000 (but, you can’t produce 10,000 handbag per month) = $5,000.000.00
$1,540 x 1,000 Produce per month = $1,540.000.00 (clears the inventory in a month)
I rather produce less, sell it at a higher price and clear my inventory.
Did you pay attention to both monetary and non monetary factors? Did you consider opportunity costs and your long-term goals?
The difference between Macroeconomics vs Microeconomics
Macroeconomics is about the price you pay for goods and services, the tax you pay on income, and the effects of macroeconomic policy on interest rates, the Gross Domestic Product (GDP). It is the study of the economy as a whole.
Microeconomics is the study of small economic units. Microeconomics is the behavior of the customer, the incentives, the pricing, the margins and so on.
What is GDP (Gross Domestic Products)?
The dollar value of all final goods and services that is produced in each country’s in one year. The GDP helps to determine the economic health of a nation because when it increases, it means that people are working and goods are in demand.
World Population Review – GDP Ranked by Country 2021
- United States (GDP: 20.49 trillion)
- China (GDP: 13.4 trillion)
- Japan: (GDP: 4.97 trillion)
- Germany: (GDP: 4.00 trillion)
- United Kingdom: (GDP: 2.83 trillion)
- France: (GDP: 2.78 trillion)
- India: (GDP: 2.72 trillion)
- Italy: (GDP: 2.07 trillion)
Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocating their funds. How a city decides to spend a government surplus. The housing market of a particular city/neighborhood. Microeconomics explains the working of a capitalist economy where individual are free to take their own decision.
What are the major economic goals for each country?
All countries’ major goal is to promote economic growth, limit unemployment, and keep prices stable.
15 Best Jobs for Economics Majors in 2021
Check their website for more detail: Economics Majors
- Market Research Analyst
- Financial Analyst
- Business Analyst
- Data Analyst
- Compensation and Benefits Manager
- Pricing Analyst
- Business News Reporter
- Environmental Economist
- Insurance Underwriter
- Research Assistant
- Policy Analyst
Don’t you want to know why some nations are rich, why some are poor, and why some are very poor in order to address the problems of hunger, poverty, disease, illiteracy, and so much more.
Check out the Global Finance for the World’s Richest and Poorest Countries.
Don’t you want to analyze the past so that you can plan for the present and the future of your businesses, making wise financial decisions, and making informed personal decisions. Make the right decision.
Finance a branch of Economics
Finance in many respects is a branch of economics, Finance describes the management, the creation and study of money, banking industries, credit, investments, assets, and liabilities. Finances can be divided into three categories:
- Public finance
- Corporate finance
- Personal finance
Do you know where your money goes? Do you check your bank account and your investment every day? Well then, start Today.
Wealth comes from land
Make Money from Money
Prices come from supply and demand
The Economy can be counted
The Study of Economics
The study of economics helps you understand the world. It empowers you to understand people, businesses, markets and governments, and therefore better respond to the threats and opportunities that appears or emerge when things change, and it provides you with the skills and the knowledge that employers want.