PAPER 4 - PART A
BUSINESS Economics
CHAPTER I • NOTES 1.1 .
⇒ BY : AGRIKA KHATRI
Loo Marks - Paper 4
Business &Business (bony commercial Hom)Economics knowledge
• race pattern To
• Theory subjects ⇒ good Notes vMultiple Revision✓Practice v
consistency U
.
Economics syllabus [60 Masks ]
Lets take an overview CHAP 1 : Nature & scope ofbefore we dive into
→ Business Economics
BedeckEncamped. . ⇒ Akane.la#.Ekaeuple•
Many options to spend (alternatives) → Same way society° We cannot have everything → Resource scarce
Problems q lo Unlimited Wants2- Means to satisfy : scarce Resources
Economics study comes into picture to Resolve this
Definition : Process&
Relatively Scarce Resources&
Allocated to satisfyd
competing Unlimited wants
Inot only above--
• How productive capacity . which factors lead toof Resources be increased fluctuation in rate of
utilisation of Resources
How Economics study solves above Problem ?
• Develop Analytical Approach to understand Economic Issue
• Provides Models 1 Frameworks
• choose best course of Action ( among alternatives)
Ff Some additional facts (Direct Mca)
• Economics → Greek word → llikonomia → Household
• Till 19M century → Political economy• First work → "Book :
"
wealth ofNations"
→ By Adam Smith onto
a leg of economic issues → change in Prices
Economic Prosperity Vs Povertylentraaedinaey Profits Vs close Down
3h Space for painters (while Mae solving)
• Business Economics
> component of Applied Economics
> use of above Economic Analysis to make business decisions
> Business Policy Making> Utilising organisation's Scarce Resource
> Parts : Micro &Macro Economics
Micro Macro
STUDY OF : Behaviour of Of : Overall EconomicIndividuals & phenomena rather than
Organisations individual parts
How individual consumer lfirms Overall Economic Environmentallocate resources analysis in which twins
,
government , Household operate .÷÷÷÷÷÷÷:÷::÷÷:÷:÷mmIndustry Location teapots importsFDI
Overall Effect of⇒ EconomicInnumerable represent Macro level.Decisions