UrbanPro
true

Take BBA Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

Learn Micro and Macro Economics with Free Lessons & Tips

Ask a Question

Post a Lesson

All

All

Lessons

Discussion

Answered on 23/03/2021 Learn Micro and Macro Economics

Soumita Sen

National Award Winning Experienced Career Counsellor & Teacher - Taught over 1000 students

Memorise and write the formulae as many times. Then solve questions based on the same, and you will remember it better for a long time.
Answers 3 Comments
Dislike Bookmark

Lesson Posted on 29/08/2020 Learn Micro and Macro Economics +9 Economics Indian Economy Micro & Macro Economics UGC NET Exam Coaching Environment and Natural Resources Environmental Study BCom Tuition BBA Tuition Tuition

ENVIRONMENTAL ECONOMICS

Richa Mishra

Doctorate in Economics. PGDBA in Finance Masters in Economics with university gold medal. More than...

Comments
Dislike Bookmark

Lesson Posted on 29/08/2020 Learn Micro and Macro Economics +5 Economics Financial Planning Commerce Indian Economy Micro & Macro Economics

13th & 14th Finance Commission

Richa Mishra

Doctorate in Economics. PGDBA in Finance Masters in Economics with university gold medal. More than...

Comments
Dislike Bookmark

Take BBA Tuition from the Best Tutors

  • Affordable fees
  • Flexible Timings
  • Choose between 1-1 and Group class
  • Verified Tutors

Lesson Posted on 29/07/2020 Learn Micro and Macro Economics +2 Micro & Macro Economics Class 12

Economics

Shipra

INTRODUCTION Every individual has specific needs, for the satisfaction of which, he/she needs resources. But the resources that a person have, to satisfy his needs are always limited and have alternative uses, and his needs are unlimited. For example, Ram has Rs. 100 (resource) which he can use to satisfy... read more

INTRODUCTION

Every individual has specific needs, for the satisfaction of which, he/she needs resources. But the resources that a person have, to satisfy his needs are always limited and have alternative uses, and his needs are unlimited. For example, Ram has Rs. 100 (resource) which he can use to satisfy his various requirements such as food, cloth, entertainment (alternative uses) etc. But all needs can not be satisfied with Rs—100 (a limited resource). So, the problem of scarcity of resources in relation to our needs has led to the emergence of Economics as a subject matter of study. 

ECONOMICS

Economics is the study of economic problems or issues that arises due to the scarcity of resources about our needs and alternative uses of those scarce resources. So, it focuses on the rational management of limited resources in such a way that economic welfare is maximized.

Economics is broadly divided into two parts:

  1. Microeconomics
  2. Macroeconomics

Microeconomics

Microeconomics refers to that part of the economics in which the economic problems are studied at the level of an individual - an individual firm, a particular consumer. The main components of microeconomics are Theory of consumer behaviour, Theory of producer behaviour, Theory of price etc.

Macroeconomics

Macroeconomics refers to that part of economics in which the economic problems are studied at the level of the economy as a whole, i.e. at an aggregate level. The main components of macroeconomics are Theory related to the equilibrium level of output or employment, Fiscal and Monetary Policies, Money supply and Credit creation, National income etc.

It should be noted that while studying microeconomics, macro variables are assumed to be constant, and while exploring macroeconomics, micro variables are assumed to be constant.

Have a beautiful day :)

read less
Comments
Dislike Bookmark

Lesson Posted on 10/07/2020 Learn Micro and Macro Economics +1 Micro & Macro Economics

Introduction to Managerial Economics

Dr Neelam

MANAGERIAL ECONOMICS Application of Economics in Managerial Decision Making to optimize resources of the firm and maximize the value of the firm What is economics? The best product, wealth, or service you can get through the resources within constraints we have. Economics talks about Rational... read more

MANAGERIAL ECONOMICS   

Application of Economics in Managerial Decision Making to optimize resources of the firm and maximize the value of the firm 

 What is economics?

  • The best product, wealth, or service you can get through the resources within constraints we have.
  • Economics talks about Rational Human beings.

Rational human beings: Rational behaviour refers to a decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual. It means when humans are presented with various options under the conditions of scarcity, they will choose the option that maximizes their satisfaction.

Demand in economics refers to a consumer's desire to purchase goods, or services, and willingness to pay the price for specific products or services.

DEMAND   is an essential concept in  Economics. The three most critical components of need are :

  1. Utility
  2. Affordability
  3. Accessibility

 A Consumer may have elastic or inelastic demand for a good or service. 

 ELASTIC DEMAND: In simple words, If the selling price of a product decreases, there will be an increase in the number of units. Demand elastic when with a small change in price, there is a notable change in quantity demanded eg.: clothing brands when buying online, Shampoo, Soap etc.

 INELASTIC DEMAND: DEMAND is rigid or less elastic when even a significant change in price induces only a slight shift in demand. For eg.: Petrol, Indian railways etc.

Keep Reading!                                  

read less
Comments
Dislike Bookmark

Lesson Posted on 23/06/2020 Learn Micro and Macro Economics +2 Micro & Macro Economics Indian Economy

7 T's Post Corona : Economic and Management view

Neha Sharma

I am am experienced and qualified tutor over 12 years of teaching experience for subject Economics at...

Every Economy is a Keynesian Model right now but not to increase the Aggregate Demand but to control the Pandemic. As the saying goes, the rule of war never changes, it's the weapons that change. So post corona as well the law of economic war will remain the same but the arms of price, product, strategies,... read more

Every Economy is a Keynesian Model right now but not to increase the Aggregate Demand but to control the Pandemic. As the saying goes, the rule of war never changes, it's the weapons that change. So post corona as well the law of economic war will remain the same but the arms of price, product, strategies, etc.. will change.

7 Ts that can happen/ may happen post corona are

1 Transformation from traditional organisational structure to the new WFH model (the business models, especially for IT industry, will employ in this manner as understood concerning the recent directive by the Indian government)

2 Technological takeover in different sectors and industries (rise of ethical consumers, the new way of hygiene maintenance and a need for social distancing will lead to innovation, and new technological advancements will happen.

3 Thrifty Investments by both businesses and households (Businesses many of them are incurring huge losses and covering that up they will be very mindful of their investments, as well as households, will watch their expenses as job loss, income cuts and price rise will play a role)

4 Tenacity of employees as job market will transform (The employees will be motivated, efficient and dedicated due to lay off in organisations or tightened opening of vacancies in the market)

Tariffs and Taxes on (the exports/imports and community, more restrictions on imports and an expansionary fiscal policy/ expenditure switching policy will aim at increasing the aggregate demand and protecting the domestic producers, sunset industries etc.)

Tick size in the financial market (minimum price change in the financial sector). The investors' interest will be protected with new rules.

Third Way Political Economic Model (a hybrid of both the left-wing and right-wing politics, a model "beyond left and right", a model that takes in consideration the social justice, neoliberalism as well as capitalism or in simple words a "New Mixed Economy")

All these Ts will mainly relate to Tiger Economies/ Asian Economies. In the long run, the World will opt India for diversified supply chain and manufacturing channels.

read less
Comments
Dislike Bookmark

Take BBA Tuition from the Best Tutors

  • Affordable fees
  • Flexible Timings
  • Choose between 1-1 and Group class
  • Verified Tutors

Answered on 08/08/2020 Learn Micro and Macro Economics

Devi Senthil Kumar

Mathematics coacher with 15 yrs of teaching experience in chennai

Yes, it will surely help you. You must be equipped with online tools to teach the lessons as well as it increases your pro-score. Also to get a higher ranking, and to reach children easily, it is the best method.
Answers 13 Comments 2
Dislike Bookmark

Lesson Posted on 12/06/2020 Learn Micro and Macro Economics +3 Chess Coaching Unit 1-Financial Accounting(Part A)Theoretical Framework Accounts

Introduction to Chess

Sahil Maurya

From last 5 years I am preparing for chess players for many tournament. Also was the captain in college...

Chess is a game played on 64 square board which is a combination of two colours, usually black and white (nowadays different colours chess boards are available like green and white, yellow and brown). The first move is always given to white pieces; however, the black gets the chance to decide to keep... read more

Chess is a game played on 64 square board which is a combination of two colours, usually black and white (nowadays different colours chess boards are available like green and white, yellow and brown).

The first move is always given to white pieces; however, the black gets the chance to decide to keep the chess clock on which side he wanted.

In this, we need to understand how to move the six pieces. The six pieces are Pawn, Rook, Knight, Bishop, King, Queen.

read less
Comments
Dislike Bookmark

Lesson Posted on 29/05/2020 Learn Micro and Macro Economics +1 Economics

Macroeconomics: GDP and other indicators.

Ishwar

Need for the indicators in Macro analysis? Like the accounts of a business, national income accounts have two sides: a product side and an income side. The product side measures production and sales. The income side measures the distribution of the proceeds from sales. On the product... read more
Need for the indicators in Macro analysis? 
  1. Like the accounts of a business, national income accounts have two sides: a product side and an income side. The product side measures production and sales. The income side measures the distribution of the proceeds from sales.
 
  1. On the product side are two widely reported measures of overall production: gross domestic product (GDP), and gross national product (GNP).  They differ in their treatment of international transactions. 
 
  1. GNP includes earnings of U.S. corporations overseas and U.S. residents working overseas; GDP does not.  Conversely, GDP includes earnings in the United States of foreign residents or foreign-owned firms; GNP excludes those items. For example, profits earned in the United States by a foreign-owned firm would be included in GDP but not in GNP.
 
GDP:
 
Gross domestic product (GDP) is a measure of all currently produced final goods and services evaluated at market prices.
 
  1. GDP includes only currently produced goods and services. It is a flow measure of output per time period—for example, per quarter or per year—and includes only goods and services produced during this interval.
  2. Only the production of final goods and services enters GDP. Goods used to produce other goods rather than being sold to final purchasers—what are termed intermediate goods —are not counted separately in GDP.
  3. However, two types of goods used in the production process are counted in GDP:
    • The first is currently produced capital goods —business plant and equipment purchases. Such capital goods are ultimately used up in the production process, but within the current period, only a portion of the value of the capital good is used up in production. (In GDP, the whole value of the capital good is included as a separate item. In a sense, this is double counting because, as just noted, the value of depreciation is embodied in the value of final goods. At a later point, we will subtract depreciation to construct a net output measure)
    • The other type of intermediate goods that is part of GDP is inventory investment — the net change in inventories of final goods awaiting sale or of materials used in the production process.  These additions should be counted in the current period as they are added to stocks so that the timing of national product is defined correctly
 
 
GDP = Consumption + Investments + Government Spending + Net Exports
 
Consumption: Household sector purchases of currently produced goods and services. 
  1. Consumer-durable goods (TV, freeze)
  2. Non-durable consumption goods (Food items, clothing)
  3. Consumer services (Medical service, haircut)
 
Investment: Part of GDP Purchased by the business sector and residential construction.
  1. Business fixed investments (for purchase of capital goods)
  2. Residential construction investments
  3. Inventory investments
 
     Net investments = gross (total) investments - depreciation 
 
Government purchases:  goods and services that are part of the current output that goes to the government sector—the federal government as well as state and local governments.  Not all government expenditures are part of GDP because not all government expenditures represent a demand for currently produced goods and services.
 
 
Net exports equal to total (gross) exports minus imports. Gross exports are currently produced goods and services sold to foreign buyers. They are a part of the GDP. 
Imports are purchases by domestic buyers of goods and services produced abroad and should not be counted in GDP. Imported goods and services are, however, included in the consumption, investment, and government spending totals in GDP. Therefore, we need to subtract the value of imports to arrive at the total value of domestically produced goods and services.
 
Limitations:
 
1. Non-market Productive Activities Are Left Out
Because goods and services are evaluated at market prices in GDP, non-market production is left out (e.g. homemaker services). Intercountry comparisons of GDP overstate the gap in production between highly industrialized countries and less-developed nations, where largely agrarian non-market production is of greater importance.
 
2. The Underground Economy Is Left Out
Also left out of GDP are illegal economic activities and legal activities that are not reported to avoid paying taxes—the underground economy. Gambling and the drug trade are examples of the former
 
3. GDP Is Not a Welfare Measure
GDP measures the production of goods and services; it is not a measure of welfare or even of material well-being.  GDP also fails to subtract for some welfare costs of production. For example, if the production of electricity causes acid rain, and consequently water pollution and dying forests, we count the production of electricity in GDP but do not subtract the economic loss from the pollution. In fact, if the government spends money to try to clean up the pollution, we count that too! 
GDP is a useful measure of the overall level of economic activity, not of welfare.
 
4. If it is not a welfare measure, one would not expect GDP to measure happiness

 
 
National Income:
 
In computing national income, our starting point is the GNP total, not GDP. To go from GDP to GNP, we add foreign earnings of U.S. residents and firms. We then subtract earnings in the United States by foreign residents and firms.
National income is the sum of factor earnings from the current production of goods and services. Factor earnings are incomes of factors of production: land, labor, and capital.
 
The first charge against GNP that is not included in national income is depreciation. The portion of the capital stock used up must be subtracted from final sales before national income is computed; depreciation represents a cost of production, not factor income. Making this subtraction gives us Net National Product (NNP) , the net production measures referred
NDP - GDP - depreciation 
 
GNP = GDP - Earnings of foreign people/company earning within-country + Earning of citizens outside country
 
NNP = GNP - depreciation 
 

 
Personal Income
 
For some purposes, however, it is useful to have a measure of income received by persons regardless of source. Personal income is the national income accounts measure of the income received by persons from all sources. When we subtract personal tax payments from personal income.
 
Personal Income = National Income - (Income not received by persons) + Income of person from sources other than current goods and services. 
 
From National Income we subtract: Part of corporate profit that is not paid as a dividend (corporate profit tax payments and retained earnings). We also subtract the contribution of employee and employer for social security that goes to the government and not to people. 
We have to add Government transfer payment (Social Security payments, veterans’ pensions, and payments to retired federal government workers) and government tax interest payments on issued bonds. 
 
Personal disposable income = personal income - taxes to be paid
 
Most of it was spent for consumption, the household sector’s purchases of goods and services. There were two other expenditures. The first was interest paid to business (installment credit and credit card interest). The second, a very small component of personal expenditures, was transfers to foreigners (e.g., gifts to foreign relatives). 
Personal saving is the part of personal disposable income that is not spent. 
 

Some Assumptions:
 
  1. The foreign sector will be omitted. This makes GNP and GDP are thus equal. The terms GNP and GDP are used interchangeably except where we see the foreign sector.
  2. We assume that national income and national product or output are the same. The terms national income and output are used interchangeably throughout.
  3. Depreciation is ignored (except where explicitly noted). Therefore, the gross and net national product is identical.
  4. We assume that all corporate profits are paid out as dividends; there are no retained earnings or corporate tax payments. We assume that all taxes, including Social Security contributions, are assessed directly on households.
  5. Net Tax Payment = Tax payment - Government Transfers
  6. Personal disposable income(YD) = National Income(Y) - Net Tax Payment (T)
  7. GDP(Y) = C + Ir + G (The subscript ( r ) on the investment term is includedbecause we want to distinguish between this realized investment total that appears in the national income accounts and the desired level of investment spending)
  8. By ignoring interest paid to business: YD = Y - T = C + S (People use money to consumption and saving only)
  9. From 8: Y = C + S + T  
  10. Hence GDP(Y) = C + Ir + G .= Y .= C + S + T
  11. This identity states that expenditures on GDP (C+ Ir + G) by definition equal dispositions of national income (C + S + T)
 

 
Measuring Price Changes: Real versus Nominal GDP
 
Nominal GDP, which measures currently produced goods and services evaluated at current market prices. GDP measured at current market prices will change when the overall price level changes as well as when the volume of production changes. we want a measure of GDP that varies only with the number of goods produced. Such a measure would be most closely related to employment. 
 
The GDP measure changes only when quantities change and not the price is termed real GDP. The traditional way of constructing real GDP is to measure output in terms of constant prices from a base year.
 
Nominal GDP changes whenever the quantity of goods produced changes or when the market price of those goods changes; real GDP changes only when production changes. Therefore, when prices are changing dramatically, the movements of the two measures diverge sharply
The ratio of nominal GDP to real GDP is a measure of the value of current production in current prices (e.g., in 2010) relative to the value of the same goods and services in prices for the base year (2005).  
 
Because the same goods and services appear at the top and bottom, the ratio of nominal GDP to real GDP is just the ratio of the current price level of goods and services relative to the price level in the base year. It is a measure of the aggregate (or overall) price level, which is price index. 
This index of the prices of goods and services in GDP is called the implicit GDP deflator .
 
The ratio of nominal to real GDP is termed a deflator because we can divide nominal GDP by this ratio to correct for the effect of inflation on GDP—to deflate GDP.
 
Two problems arise when real GDP is measured using prices in a base year. One problem is that every time the base year changes, the weights given to different sectors are changed, and history is rewritten. A second, more serious problem involves changes in relative prices and consequent substitutions among the product categories contained in GDP. ( relative price–indued substitutions)
 
The chain-weighted measure of real GDP. Instead of using prices in a base year as weights, the chain-weighted measure uses the average of prices in a given year and prices in the previous year. Thus, real GDP in 2010 is calculated using 2009 and 2010 prices as weights.

 
The Consumer Price Index and the Producer Price Index:
 
Because the GDP deflator measures changes in the prices of all currently produced goods and services, it is the most comprehensive measure of the rate of price change.
 
The consumer price index (CPI) measures the retail prices of a fixed “market basket” of several thousand goods and services purchased by households. The CPI is an explicit price index in the sense that it directly measures movements in the weighted average of the prices of the goods and services in the market basket through time.
 
Another widely reported price index is the producer price index (PPI) , which measures the wholesale prices of approximately 3,000 items. Because items sold at the wholesale level include many raw materials and semi-finished goods, movements in the PPI signal future movements in retail prices, such as those measured in the CPI. Both the CPI and the PPI have the advantage of being available monthly, whereas the implicit GDP deflator is available only quarterly.
 

 
Over smaller periods, fluctuations in output and employment come primarily from variations in actual output around potential output, which is defined as the level of output that the economy could produce at high rates of resource utilization.
 
 
 
 
read less
Comments
Dislike Bookmark

Take BBA Tuition from the Best Tutors

  • Affordable fees
  • Flexible Timings
  • Choose between 1-1 and Group class
  • Verified Tutors

Lesson Posted on 07/03/2020 Learn Micro and Macro Economics

Risk and persons

Amandeep

I am a student of Master of economics also teaching tutions of economics. I study it in depth. My notes...

Risk Averter:- A person who minimise risk during investment called Risk Averter or Risk Averse and the activity called risk Aversion. Risk Lover:- A person who take risk to maximise his profit during an investment is called Risk lover or Risk seeker. Risk Neutral:- A person who is indifferent... read more
  • Risk Averter:-   A person who minimise risk during investment called Risk Averter or Risk Averse and the activity called risk Aversion.
  • Risk Lover:- A person who take risk to maximise his profit during an investment is called Risk lover or Risk seeker.
  • Risk Neutral:-  A person who is indifferent towards Risk which means sometimes he take risk and sometimes not he called Risk Neutral.
read less
Comments
Dislike Bookmark

About UrbanPro

UrbanPro.com helps you to connect with the best BBA Tuition in India. Post Your Requirement today and get connected.

Overview

Lessons 24

Total Shares  

+ Follow 28,443 Followers

You can also Learn

Top Contributors

Connect with Expert Tutors & Institutes for Micro and Macro Economics

x

Ask a Question

Please enter your Question

Please select a Tag

X

Looking for BBA Tuition Classes?

The best tutors for BBA Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take BBA Tuition with the Best Tutors

The best Tutors for BBA Tuition Classes are on UrbanPro

Book a Free Demo

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more