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. It is the study of the economy as a whole. Microeconomics is the study of small economic units.
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.
27 of the Most Profitable Small Businesses to Open in 2021~The Kiss Ass Entrepreneur
Check their website for more detail: The Kiss Ass Entrepreneur
- Start a blog (how to create a blog)
- Business consulting
- Courier Services
- Cleaning Services
- Personal Chef
- Tutoring, online and in-person
- Logo and design service
- Property Management
- Technology consulting and Repair
- Marketing Services
- Personal Trainer
- Have Van will help (many need help with moving both and small)
- Gardening and Grass Cutting
- Snow Clearing
- Real Estate Brokerage
- Mobile Hair Cutting
- Handy man/handy person
- Food truck (Rent is high so now you will see more and more Food trucks back to basics?
- Social Media Consultant
- Tax Preparer
- Translator (foreign language)
- Video production
- Travel Planning
- Telemarketing (oh no!)
- Bicycle Repair
- Boat cleaning
- Ride-Sharing Driver
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.
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 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.