دراسات اقتصادية بلغة أجنبية الفرقة الثانية شعبة نظم المعلومات الإدارية hims.eg

1. دراسات اقتصادية بلغة أجنبية الفرقة الثانية شعبة نظم المعلومات الإدارية www.hims.edu.eg الأستاذ الدكتور عادل المهدي عميد المعهد العالي للعلوم الإدارية بالقطامية

2. Chapter one Introduction to economics

3. CHAPTER ONE INTRODUCTION TO ECONOMICS WHAT IS ECONOPMICS Marshall defined economics as: “ The study of man in everyday business of life”. Others defined economics as: “The Human science, which studies the relationship between scarce resources and the various uses or wants which compete for these resources”. So the economics is concerned with: The way resources are allocated among alternative uses to satisfy human wants.

4. WHAT IS ECONOMIC PROBLEM The economic problem is: the scarcity of all resources, where the human wants are unlimited Human wants are the goods and services, that people desire. So the human wants are unlimited Resources are the things used to produce goods and services which then can be used to satisfy human wants. Economic resources are scarce or limited.

5. All economic decisions • involve choice in terms of: • what to produce, • how to produce, • for whom to produce

6. What to produce involves: • What to produce involves decisions about the kinds and quantities of goods and services to produce: • how many luxurious houses and how many low- cost apartments. • how many full-size and compact cars to produce, • how much food and medical services to supply, • how many civilian and defense goods to provide.

7. How to produce involves: • How to produce requires decisions about what techniques to be used and how the economic resources (labor, capital, and land) are to be combined to produce. • How goods and services can usually be produced with many different techniques and combinations of labor, capital, and land, it is important to determine which techniques should be used.

8. For whom to produce involves: Payment of income to individual will determine the distribution of goods and services among the members of society. Insatiability of human wants. It is impossible to satisfy human wantsbecause as one want is satisfied another appears .

9. WHAT IS THE ECONOMICS SCOPE It studies individuals and organizations involved in the production, distribution, and consumption of goods and services.

10. WHAT IS THE ECONOMICS SCOPE Macro and Microeconomics: Economics is divided into microeconomics and macroeconomics. Microeconomics is concerned with small parts of the economy and the interrelationships between these parts. macroeconomics is concerned with the behavior of aggregates affecting the whole economy

11. WHAT IS THE ECONOMICS SCOPE Microeconomic topics might be explaining movements in the prices of certain commodity,. Macroeconomic topics come under the four headings of inflation, unemploymentthe balance of payments and growth.

12. WHAT IS THE ECONOMICS SCOPE Macroeconomics also examines the factors that determine national output. Microeconomics is concerned with household income.

13. Economic resources & Free resources Free resources:such as air, and sands, are so large and easily available that they can be obtained without charge. The test of whether a resource is an economic resource or a free resource is the price. Economic resourceshave a nonzero price, while free resources have a zero price .

14. Economic resources • Economic resourcescan be classified into four categories: • land, • labor, • capital, • entrepreneurship

15. Land Consists of an economy’s natural resources, such as minerals, forests, sea, rivers, and agriculturalland. Owners of land receive rental income when it is used to produce goods or services.

16. Capital Is the human made resources and consists of tools, equipment, machinery, buildings, and which are used to facilitate the production of goods and services. Capital may be Financial capital or physical capital.

17. Financial Capital Financial capitalconsists of financial instruments, such as savings accounts, bonds, and stocks, which come when individuals save and then lend this saving for the creation of tools, equipment, machinery, and so on.

18. PhysicalCapital Physical capital, consists of buildings, machinery, equipments ,tools ,computers, trucks, and plants. Financial capital is needed to purchase physical capital. Financial capital represents the ownership’s claims to the physical capital.

19. Labor Labor: consists of human beings,. Labor resources can be measured in terms of the number of people in the workforce, People differ in skills, education, and natural ability. Labor may be defined as the exercise of human mental and physical efforts in the production of goods and services. Human Capital : is the accumulation of past investments in schooling, training, and health that raise the productive capacity of people.

20. Entrepreneur Entrepreneur: Certain persons, called entrepreneurs, posses a particular talent and perform a particular role that can not be performed by land and capital. Entrepreneur organizes, manages, and bears the risks for an enterprise

21. Entrepreneur Entrepreneurs are those people: who organize the factors of production to produce output, who seek out and exploit new business opportunities, who introduce new technologies. who have information about the best methods of production. who takes the risk and bears the responsibility if the venture fails.

22. FACTORS INCOMES. FACTORS INCOMES. The various incomes which the factors receive can also be termed factor rewards or factor returns. Laborreceiveswages and salaries, Land earnsrent, Capitalearnsinterest , Entrepreneurearnsprofit.

23. Chapter Two BASIC CONCEPTS OF DEMAND

24. Demand Law The first law of demand tells us that: If we lower the price of a commodity, other things being equal, a greater quantity will be demanded. The demand schedule: Specifies the units of a good or service that individual is willing and able to purchase at alternative prices during a given period of time.

25. Demand Law The relationship between price and quantity demanded is inverse; More units are purchased at lower prices because of a substitution effect and an income effect For example, when coffee prices fall and the price of tea is unchanged, more coffee and less tea is purchased.

26. Demand Law The inverse or negative relationship between price and quantity demanded appears as a negatively sloped demand curve.

27. D 18 16 14 12 10 8 6 4 2 0 D 100 200 300 400 500 600 700 800 900 Demand Curve: A B C D E F

28. Demand function: According to the previous analysis the demand function may takes the next formula: Were: = Quantity demanded (X) = The constant term = The demand function slope. = The unit price of commodity (x)

29. Demand function: • Note that the signal of the demand function slope is negative, • This shows that the relationship between price and quantity demanded is inverse. • The constant term refers to the quantity demanded even the price is zero

30. Shifting the demand curve: • The demand for a good or service is influenced not only by the commodity’s price but also by: • The price of other goods, • Income, • Tastes, • The size of the market.

31. D D1 18 16 14 12 10 8 6 4 2 0 D1 D 100 200 300 400 500 600 700 800 900 D2 A B C D2

32. Price Elasticity of demand: The responsiveness of the quantity demanded to changes in price is known as Price elasticity of demand,. The elasticity of demand is defined by the following formula:   % change in quantity demanded % change in price Elasticity is calculated by dividing the percentage change in quantity by the percentage change in price.

33. Elasticity of demand

34. Elasticity = Slope x (Price ÷ Demand)

35. Unit Elasticity D D

36. Elastic >1 D D

37. Inelastic <1 D D

38. Zero Elasticity D D

39. Infinite Elasticity D D

40. Elasticity and total revenue • When the price of a commodity falls, the total revenue of producers (price X quantity) • increases: If ED > 1 • Remains unchanged if ED = 1 • Decreases if ED < 1.

41. العلاقة بين المرونة والانفاق الكلي طلب غير مرن D a P b P1 D 0 Q Q1

42. العلاقة بين المرونة والانفاق الكلي طلب مرن D a P b P1 D 0 Q Q1

43. العلاقة بين المرونة والانفاق الكلي طلب مرن D P P1 D 0 Q1 Q

44. Calculate the demand elasticity of the following:(1)Qd is 1000 at the price 10The price changed to 20 Qd changed to 500 (2)Qd is 1000 at the price 10The price changed to 5 Qd changed to 1200(3)Qd is 1000 at the price 10The price changed to 15 Qd changed to 800 Calculate the net revenue in each case

45. Chapter Three BASIC CONCEPTS OF SUPPLY

46. Supply A supply schedule specifies the units of a good or service that a producer is willing to supply (Qs) at alternative prices (P) over a given period of time. The supply curve normally has a positive (upward) slope,

47. Supply 0 0 100 2 200 4 300 6 400 8 500 10 600 12 700 14 800 16 900 18

48. 18 16 14 12 10 8 6 4 2 0 100 200 300 400 500 600 700 800 900 Supply Curve I S H G F E D C B A

49. Supply Function

50. 18 16 14 12 10 8 6 4 2 0 100 200 300 400 500 600 700 800 900 Shifting the Supply Curve S2 S S1 C A B