Economics: An Introduction to Economic Principles and Concepts
Unit 1 – Introduction to Economics
Economics: a practical science dealing with the production, distribution, and use of goods, services, resources, and wealth. It is ”the science of scarcity and choice.”
Fallacy: a hypothesis that has been proven false but is still accepted by many people because it appears, at first glance, to make sense. The Fallacy of Composition: A mistaken belief that what is good for an individual is automatically good for everyone, or what is good for everyone is good for
Read MoreUnderstanding Network Effects and Organizational Structure in Digital Economics
Network effects play an important role in digital economics Formally, a good exhibits network effects if the demand for the good depends on how many other people purchase or use it. Network externalities are situations in which the consumption of one individual directly or indirectly influences the utility of another individual. Customers generally select the network, which is expected to consist of most users and thus provides the highest value. These effects commonly occur in network industries
Read MoreUnderstanding Economic Activity and Systems: A Comprehensive Guide
Economic Activity
The combination of tasks undertaken by people to obtain goods to meet their needs, which can be material or services.
Sectors of Economic Activities
- Primary sector (goods): extraction of natural resources
- Secondary sector (goods): transforming natural resources
- Tertiary sector (services): providing services
Components of Economic Activities
- Production: number of goods resulting from economic activity
- Distribution: transfer of products to consumers
- Consumption: use of goods resulting from
Labor Market Analysis and Economic Growth
How much labor do firms want to use?
Assumptions Hold capital stock fixed—short-run analysis. Workers are all alike, the labor market is competitive, and firms maximize profits. Analysis at the margin: costs and benefits of hiring one extra worker. If real wage (w) > marginal product of labor (MPN), profit rises if the number of workers declines. If w < MPN, profit rises if the number of workers increases. Firms’ profits are highest when w = MPN
What are the substitution effect and the income
Read MoreModern Business Characteristics and Managerial Practices
Characteristics of Modern Business
Effective use of information (knowledge) – Global concepts (organized on a global scale) – Interactions among economic agents and business networks (customers included), virtual networks, knowledge technology and relationship management
Implementing LAW of Requisite Variety in Managerial Practice
– Build up of a structural complexity (hierarchy, procedures, systems)
- Business systems turned unmanageable
- Empower organizational units and employees to solve problems autonomously
- Management
Effective Strategies for Public Relations and Crisis Management
The message the organization should share with these audiences should be very similar.
Firstly, they should highlight how successful they have been recently and all the different ways they can help the audiences addressed. The organization should also send a few members to China months in advance to talk about the benefits of this program and how people can benefit from it. The message should also highlight that these dentists are qualified professionals with years of experience that want to make
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