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