Economics is a subject that has widespread application in the present times. The students of economics therefore need to know about its different aspects in details for solving all questions with ease.
There are many online tutors of economics who can really help students to strengthen the base and show them a path for improvement thereon.
Macroeconomics, microeconomics as well as different theories concerned with demand and supply is required to be known by students from the beginning, if they wish to master this subject. Demand and supply theories are also required to be known to study markets better.
Learning about use of resources
There are lots of definitions associated with economics that have different explanations, from different viewpoints. You need to get a summary based view from people, experts rather. These people explain different definitions of economics and also how resources are to be used for fulfilling demands of consumers.
Online economics tutors will help your complete assignments. These people will also be providing you with all kinds of solutions for your doubts.
No two people may have similar doubts. Some people may not understand the theory of demand and supply and some may be clueless about consumer behavior. If you find it too boring to go through different lines in your textbook, then taking help from online tutor is the best option for you.
The concept of scarcity, is one of the most important concept of economics, and forms a building block for this subject. By scarcity, information about availability of limited resources and how they would satisfy unlimited needs of people is discussed.
Explicitly speaking, different resources such as money, Raw materials etc are limited in nature however people’s needs are unlimited. Hence a student studying economics, will know how to make the correct decision regarding usage of resources to meet demands of consumers.
The knowledge of this subject helps you to make decisions. You perform a research on the present needs of markets and get ideas about what to do to improve the situation. Suppose x is raw material for making goods, m, o and p. Now, there is a limited amount of x available in markets.
With knowledge of economics, you will know which product, among m, o and p is to be given preference during production. This is an example showing arrival of scarcity in markets and how you will solve problems similar to these.
Presence of demand and supply
You need to understand that demand and supply forms one of the pillars in market economy. By demand, it is meant, how much product people wish to buy at a particular price. By supply, it is knowing how much sellers wish to sell to customers at a particular price. By studying both, price of a particular good is fixed.
If demand for a particular good increases, then more quantities is required to be produced. You must however remember that with increase in demand, prices will also rise proportionately. Funny, but true, when prices rise, demand falls automatically, therefore markets regulate themselves. Prices also get regulated from time to time, in this manner.
As demand dwindles with rise in price, different suppliers have to lower their prices in order to sell that product. There are some essential goods, however, which have no other alternatives in markets, hence even after a rise in price, the demand for such goods persists.
Different online teachers of economics, give best examples to explain these situations to you. You need to be aware of different market segments as well as behavior of consumers towards economies to make decisions. The different online tutors will also help you to complete complex economics projects. The condition prevalent in present day market is also discussed by them on a daily basis.
Analysis of cost and benefit
By cost benefit analysis, an optimal solution is reached by comparing different costs and how some alternatives can be used for getting maximum profits. Different examples have been used for competing cost benefit analysis.
The examples used by online tutors to drive home these points, are extremely interesting in nature. They are far easier to understand than boring lines of a textbook. Suppose, a person is required to travel to a certain place to do a certain job. This job requires to use of machine x. Now members of a company will perform a cost benefit analysis to understand whether it is more effective for that person, to travel every day to machine x and do the job or will be better to simply purchase that machine in the company itself and save travel and other overhead costs.
Other than performing basic calculations, in this scenario, the members will also consider hidden costs within this entire operation. If they find that the cost of sending out a member is higher or equal to purchase of machine x, then it will definitely prefer getting that machine into their company. This is to save working hours.
Therefore, you need to understand that this kind of analysis, considers quantitative as well as qualitative aspects of inspecting money in completing a project. You need to speak to online tutors to get a sure shot idea about these things.
Working for incentives
Incentive is a term that is widely used in economic sectors. It serves like a motivation for people to work in preferred areas within an economic sector. There are two types of incentives that people usually rally for. These incentives are either extrinsic or intrinsic in nature.
Extrinsic incentives, usually originate from outside a person’s sphere and motivates that person to complete tasks. For example, if a manufacturing unit wishes to increase production of a particular product by 10 folds, then it will announce a certain bonus for workers, for every lot of extra good that they can produce within stipulated time.
The bonus being spoken of earlier, serves as an extrinsic incentive for workers. It motivates them to work harder and companies reach their target. There are other forms of such bonuses too, including discounts, vouchers as well as rewards.
Intrinsic satisfaction comes from within. For example, if the work that you are doing makes you satisfied from within or brings about positive changes in people in work place, then you will feel good and content.
This kind of intrinsic satisfaction definitely motivates people to work very hard, since it is doing good for them as well as others. These areas are well covered by different teachers on economics teaching platforms and you definitely need to go through these.
This field of economics, deals with behavior concerned with a single unit, concerning individuals as well as business firms. This filed of economics, help in studying the behavior of a certain firm or even customer and learn how they take certain decisions to run their companies better. Studying microeconomics will really broaden knowledge about different interactions taking place between buyers as well as sellers. You will know about different elements that actually influence them in making one choice over another.
The whole concept of microeconomics is related to the smaller picture rather than the bigger one. These pictures are mostly related to behavior of individuals. Therefore, students study about pricing of various products, different factors that influence such pricings, detailed study of various firms and how businesses are done. Different details of topics will be provided to you in really simple terms here. You can even purchase different model assignments and look to solve them later on from online study portals.
With use of macroeconomics, the bigger picture of a situation is discovered. There are various aspects that a person needs to know in order to become an expert in this area. Here, you will find that the bigger picture is given a lot of priority, in contrast to that in microeconomics. You will be finding information about national economy and even global ones here.
Here, you will be studying about various factors such as supply of goods and services in order to determine prices as well as rates of inflation and GDP, work towards eradicating unemployment etc. You will be studying about levels of prices as well as investments and savings to fulfill all needs.
Some differences highlighted here
Microeconomics is strictly concerned with behavior of a single unit, whereas macroeconomics looks into an economy on the whole. Microeconomics is often termed as Price Theory whereas macroeconomics is termed as Income Theory.
Microeconomics mostly deals with issues where individuals are affected such as opportunity cost, demand, supply etc. Factors that affect the whole national economy is dealt with here, including inflation, unemployment etc.in theory of microeconomics, often you will find that certain impractical assumptions are made. Macroeconomics involve study of ‘fallacy of composition’ that tells, if a particular thing is true for an aggregate, then it is not necessarily true for an individual.
Different kinds of markets
In capitalism, people literally look for self-interest and wish to safeguard their rights to own private properties. According to it, the State actually exists to protect the rights of individuals. There are of course certain restrictions that one needs to abide by, while making investments. Other than these restrictions, people are free to choose where to invest and what prices they wish to charge. There exists no natural barrier to limit assets, sales, profits or customers. Individuals can be working in local or national markets in order to play their trade.
Socialism and free market
In socialism, you will find that governments have taken control, when it comes to using means of productions. This theory came forward as a remedy for defects associated with capitalism. The very idea associated with socialism still persists in people’s minds, in spite of it being a failure. Rise and fall of socialism are equally dramatic in nature. Free market essentially refers to all kinds of exchanges that take place within a society to keep a business going. Different exchanges only take place after an agreement has been reached between individuals. Economic goods of tangible nature as well as services get exchanged in this way.
Producer in an economy
A producer is somebody who looks to create goods as well as different services. Different producers, usually make a combination concerning both labor as well as capital and create a final output. Various business firms serve as prime examples of such producers. Governments also in some way represent producers, as they provide services such as police, defense etc. There are certain products that you will not find readily in markets. These might include services such as cleaning, cooking etc. Entrepreneurs may be called as creator of ideas rather anything tangible. These people start with different ideas as producers in market.
Profits in businesses
Profits can be referred to as returns that capitalists get by providing some inputs. These people initially do not look forward to fulfill their personal preferences. They do not end up consuming all resources in one time. They make some savings from present day income and then invest those savings in activities that would be yielding more returns in future. Profits also come to those people who are willing to take risks. Ability of an enterprise as well as its ability also determines how much return one can get after making an investment.
Role of governments in economies
You will find that most economic arguments concerning intervention from governments, often base themselves upon an idea that various marketplaces cannot bring forth goods or handle situations when externalities arise. Public health and different welfare programs have been labelled as public goods for quite some time now. As a student you need to have some idea about these things too while solving assignments.
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