Introduction to Microeconomics Very Short Questions | Microeconomics For: BBA, BBA-BI, BBA-TT, BCIS. Because of unlimited wants and limited resources we cannot satisfy all our wants or desire. e.g. By. Save my name, email, and website in this browser for the next time I comment. Life is thus full of choice. By contrast, microeconomics treats economic processes that concern individuals. Here the stock variable is 50 million gallons at a particular point of time. That fluctuation in output create the business cycle. Under the monetary policy government manages money, credit and banking system. Such activities will be estimated with certain reasoning. The concept of equilibrium and disequilibrium are familiar words in physical as well as in social science. Broadly there are two main components of fiscal policy they are government spending and taxation. Basically, two different policies to reduce this high and persistent unemployment are suggested by different group of economist. Wants: "Want" is defined as having a strong desire for something. The term value added simply indicates the value addition in the goods in the process of production. The real income of all factor owners also slowly increases. In this context Principles of Macro Economics means Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and … Figure I – 4: Micro Equilibrium with Demand and Supply. BCom Books (Bachelor of Commerce) – 1 st, 2 nd & 3 rd Year Notes and Books Free PDF Download. This book is useful for B.com 1st year students, MBA students, and BBA ( Bachelor of Business Administration students). Resources being scarce, it is highly desirable that they should be most efficiently used. It examine the distribution of income, and suggests ways that the poor can be helped without harming the performance of the economy. Faculty of Commerce and Management Studies-BBA Programme-Regulations, Scheme and Syllabus-under Choice Based Credit Semester System-approved-implemented-with effect from 2009 admission-orders issued. If we are willing to give up still more butter, we can have still more guns. Its outward signs are liquidation in the stock market strain in the banking system and some liquidation of bank loans, and the beginning of the decline of prices." "When a crisis, and more particularly a panic, does occur, it seems to be associated with a collapse of confidence and sudden demands for liquidity. x Compare that with my current 10 hours! If all such differences are added up for all industries in the economy, we arrive at the GNP by value added. It looks at growth in developing countries, and propose ways to encourage the efficient use of resources. Saweel ur Raheem. These are outlined in the following paragraph. From this definition of economics it is clear that the desires of the people are unlimited but to fulfill these desires resources are limited (scarce) or means are limited to fulfill the unlimited ends of the people. The questions of whether the government can and should do something about each of these issues and what is best to do have been at the center of macroeconomics for a long time. Course Objectives This course is designed to reinforce and expand students’ understanding of the basic macroeconomic theory. But there are some activities, which are legal but not reported to the government. While choosing one the output or services from other is loosed. The energy resources (oil), and the non energy resources (metal from mining) available within the earth are also comes under the land. Therefore models, which involve more than one equation, attempt to solve these equations simultaneously. Get Bachelor of Business Administration Notes for 1st, 2nd, 3rd Year through the links here. Analysis of determination of national income and employment. Second and final exam: on Tuesday, April 30th. A firm or a bank, or a corporation announces its inability to meet its debts. There are certain macroeconomic variables which have both the flow and stock magnitudes. An economy uses its existing technology to combine inputs to produce outputs. macroeconomics notes for bba pdf storage googleapis com. They tend to rise prices. What happens in one period is related to what happened in the preceding period and what is expected to happen in the succeeding periods. There is considerable reduction in the production of goods and services, employment, income, demand and prices. BBA Notes & Books For All Semesters In PDF – 1st, 2nd, 3rd Year. PPF shows the different situation and choices of the society. It is a symptom of the end of the prosperity phase and the beginning of the recession. Full employment of. Such activities are found due to the stringent government regulation and high taxes. Many countries in the world are following mixed economies where the government as well as markets are functioning simultaneously to answer the basic economic questions like what, how and for whom. It either increases or decreases disposable income thus affects the private consumption expenditure as well as savings. As a result, profit margins decline further because costs start overtaking prices. Take simple example to determine the equilibrium level of income, Substituting the value of C and I in Y = C + I, we get. According to Keynes national income is determined by the level of aggregate demand. Introduction To Macroeconomics Lecture Notes Univie Ac At. Check out the BBA Books free download in pdf. In general, national accounts exclude illegal activities from national output since these are 'bads' and not 'goods'. This crisis of nerves may itself be occasioned by some spectacular and unexpected failure. U.O.GAI/J1/3601/08(Vol II) dt.19.06.2009. 200. According to them investment adds productive capacity (i.e. So, you … Inflation, growth, and unemployment are related through the business cycle. This encourage retailers, wholesalers and manufactures to aid inventories. Reply Delete. 200,000 if the price of butter is Rs. The difference between them is that a stock is a quantity measurable at a specified point in time and the flow is a quantity that can be measured only in terms of a specified period of time. History shows that rapid prices changes distort the economic decisions of companies and individuals, Countries are facing the problem of increasing unemployment, decreasing the rate GDP growth and high rate of inflation. In this phase employment and output slowly begin to rise. This increased availability of resources allows the economy to produce more goods and services, resulting in a rising trend level of output. With the total resources available within the country and utilization of existing technology, let us suppose that the country can produce the maximum quantity equal to 5000 guns of certain kinds and 10000 m.ton butter. In other words the performance of macroeconomics is judged with the growth rate of GDP, low unemployment and price stability. The business cycle have four phases, which are explained in the following paragraphs. A cycle is thus complete. The production is said to be efficient if the productive resources are utilized in such a way that through any re-allocation it is impossible to produce more of one good without reducing the output of any other good. This is an archived course. Various production possibilities such as A, B, C, D, E, and F are shown in the Figure I -3. Macroeconomic model covers thousands of different goods and services supplied and demanded in the markets. i.e. Taxes may also affect prices of goods and factor of production and thereby affects incentives and behavior. Another important branch of macroeconomics is the theory of economic growth. As an individual the economy's need are also unlimited relative to its resources. Download BBA 1st year, 2nd year and Final year notes (BBA బుక్స్) from below … Share to Twitter Share to Facebook Share to Pinterest. It is measured in actual market prices or current year price of goods and services. Government spending comes in the form of purchases of goods and services, construction of infrastructure, purchases of arms and ammunitions for maintaining peace and security, for transfer payments (old age pensions, unemployment pensions, widow pensions etc). High level amount of money can be helped without harming the performance of the means of.! 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