Economics Homework Help

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What Is Economics? • Economics is the social science used to study the production, distribution, and consumption of goods and services. The major focus of economics is on the behavior and interaction of the economist. There are two types of economics; the first one is macroeconomics, and the second one is microeconomics. www.calltutors.com

Basic Concepts Of Economics • Scarcity It is a basic concept of economics that is used to describe the availability of limited resources to meet the unlimited needs. For example the technology in many countries is still limited but the demand for technology is unlimited. Therefore scarcity allows us to use the least resources to meet the high demands. www.calltutors.com

Demand and Supply • The demand and supply is the major concept of economics. It is known as the pillar of market economy. Demand refers to the quantity of goods and services that the customers want to buy at the given price. On the other hand the supply refers to the availability of goods and services for the vendors and suppliers to sell at the given price. www.calltutors.com

Cost and benefit analysis • It is the major point for the business. Because everyone in the industry wants to make money. It is based on the comparison between cost and benefits of various products and services in order to increase their revenue as high as it can be. www.calltutors.com

Incentives • It is similar to the extra money that is paid by the employer to the employee in order to motivate themself to perform the job with more effort. Economics has two types of incentives i.e. extrinsic incentives and the intrinsic incentives. The extrinsic incentives provide the motivation to the person to accomplish the task. On the other hand the extrinsic incentives are based on the money, discounts, rewards and bonus extra. www.calltutors.com

Economics Problem Solution Methods Analysis • It is the process that is based on some points i.e. the past data observation and the problem in hand. With the help of this technique we take the estimation of what choice will be made by the people in irrational bases and why they would make them. www.calltutors.com

Abstraction • In this process we break down the problem into various parts or compete to find out which factor influencing it. • www.calltutors.com

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Economics Homework Help