Scarcityin Pakistan electricity is shifted from industrial to house hold usage due to shortage in Ramadan, this shows that resources required to produce electricity are scarceMacro economics budget represented by finance minister on 6th of June, is mainly related to macroeconomicsMicroeconomicsa salaried person will get 7%raise in his salary, announced In budget.Factors of productionland (oil, extracted by Pakistan), labour (Mr. Khan, my teacher), capital (infrastructure, machinery and building of LAS), entrepreneur (my father, ceo of style textile )Three questionswhat to produce (weather USA should produce spaceship or should produce medicine)How to produce ( hush puppies is facing a question whether to produce shoes using labour intensive or capital intensive production method)For whom to produce (style textile is facing a question whether to sell in Pakistan or to export it products)Production possibility curveshows what combination USA can have of health and defenseTrade offUSA has allocated more resources on health but at the same time USA has to compromise defense budgetOpportunity costI am doing this assignment so I have to sacrifice my soccer matchTraditional economyMalawi is aggri based economyCommand economyUSSR, before fall.Market economyUSA, not pure but near to market economyCeteris ParibasIf the United States drilled for oil off of its own shores, ceteris paribus, the price of gasoline in the United States would drop significantly.Invisible hand metaphortake a look at American farming. In the 19th century, people from all over the world rushed to the American Midwest, lured by the promise of free land. So there were plenty of individuals who endeavored to employ their capital so that its produce may be of the greatest value.

Hundred years later, the vast majority of those farmers' descendants live in cities and have nothing to do with farming; food prices have been continuously falling relative to incomes. Three percent of the U.S. population engaged in farming are capable of feeding the entire country and export food while they are at it, but their standard of living is generally below that of the city dwellers. So by working hard, innovating, and maximizing their output, American farmers have actually promoted affordability of food for city dwellers and lower living standards for themselves compared to city dwellers, an end that was no part of their intention...Circular flow of products and resources Resource market London commodity market (Brent oil)Product marketliberty market for consumer goodsFactor market Ppf curve

Externalitiespollution in Beijing (negative)Job opportunities for residents of Beijing (positive)Public goods US navy, US air force.Private goodsplay station, XboxLaw of demand increased university fee in US universities has caused less number of application this year23increased prices of iphone provided Samsung an opportunity to penetrate the smart phone market in 2006 24reduced steel prices allowed Honda motors to produce more cars and offer its new Honda city at lower price25having cup of tea gives me satisfaction2627every next cup of tea is going to give me less satisfaction2829higher incomes gives higher purchasing powerDecrese in price of x box caused decrese in demand of play stationDecrease in oil prices allowed to produce more electricity, at lower cost to IPPs in Pakistan Reduced interest rates to 7 % encouraging more consumption in Pakistan Heat wave in Karachi (seasonal change) caused an increase in demand of electricity30Versace reduces prices of its products before x-max to boost its sales because Versace knows that responsive change in QD is going to be more than change I prices.31I have never seen any pharmacy announcing 50% off because they know medicines are bought only by the patients so any decree in prices is not going to attract people to buy more medicines32