Understanding Economic Efficiency and Trade
Equity and Resource Distribution
When it comes to more than two people, the meaning of the word equity is even more complex. The Rawlsian viewpoint emphasizes that an egalitarian distribution of resources can eliminate the incentive for most people to engage in productive endeavors, as they lose the wealth obtained as a result of taxes. This vision permits disparities that improve the welfare of the worst-off person in society. According to Rawls, a more equitable allocation of utility maximizes
Economics and Managerial Economics: Demand Analysis
Economics Vs. Managerial Economics
Here’s a comparison between Economics and Managerial Economics:
Economics
- Deals with both micro and macro aspects.
- Both positive and normative science.
- Deals with theoretical aspects.
- Studies both the firm and the individual.
- Wide scope.
Managerial Economics
- Deals only with micro aspects.
- Only a normative science.
- Deals with practical aspects.
- Studies the problems of the firm only.
- Narrow scope.
Demand Analysis
Demand analysis is an attempt to determine the factors affecting
Read MoreEconomic Models: Classical, Keynesian, and Synthesis
Classical Model: The ideas originated with nineteenth-century classical economists, Adam Smith and Ricardo. The main characteristics are:
- Predominance of supply over demand: Aimed to explain the economy based on production functions and did not consider application.
- Perfect competition in all markets:
- High number of suppliers and demanders
- The product is homogeneous
- Firms are not able to fix the prices of products
- Perfect information, free entry, and exit of firms
- Flexible Pricing: The result is equilibrium
Capitalism, Game Theory, and Economic Trends
Capitalism
ADAM->Capitalism is an economic and social system that appeared at the beginning of the 19th century. The ancient middle class used to live in fear and in a constant state of survival; and only the upper class could afford the best things. Nowadays, due to capitalism, life has changed for people from the middle class. They are able to buy things that the ancient upper class used to enjoy, but with the difference that the new middle class works to afford those things. Capitalism is based
Personnel Management: Remuneration, Development, and Finance
Personnel Management
Maintenance Personnel
This relates to activities that benefit the worker. Key items to consider are:
Remuneration
Remuneration is compensation or reward for effort, composed of material and moral elements. Material elements include basic salary, overtime, bonuses, and holiday bonuses. Moral elements include psychological incentives (medals and congratulations) or rank (title, private office).
Industrial Security
The aim is to ensure that risks to workers’ health and lives are minimized.
Read MoreUnderstanding Economics: Core Principles
Microeconomics and Macroeconomics
Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets.
Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect many households, firms, and markets at once.
Transactions and Spending
- Every transaction has a buyer and a seller.
- Every dollar of spending by some buyer is a dollar of income for some seller.
Gross Domestic Product (GDP)
GDP is
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