Economics

Our Economics Solution Library page contains numerous questions, essays, case studies and scenarios covering a wide range of topics.

Economics is one of the very important subjects in commerce and financial studies. Economics is the study of limited or scarce resources in a narrow sense. But in a broader sense, it can be defined as the study of goods, services, resources and utility. Goods and services are tangible and intangible things respectively which need to be produced using limited resources. Utility also plays a major role in economics. Utility is the satisfaction derived from the consumption of a good or a service. The concept of utility is important in economics because it gives rise to demand.

Economics can be subdivided into two major topics, microeconomics and macroeconomics. While microeconomics includes the study of demand and supply for a good or service in an industry, firms in an industry, the progression of an industry, etc, macroeconomics is far more complicated than microeconomics and it deals with concepts such as what constitutes an economy, how an economy of a country works, the various types of markets that exist, economic growth, fiscal and monetary policies adopted by governments, unemployment, inflation, business cycles, etc are discussed.

Some of the concepts that you can find in our Solution Library under Economics include

Microeconomics

Supply and Demand: Demand is a phenomenon which is the need or want of a person to consume a good or a service. Demand is countered by supply which is the availability of that particular good or service. The interaction between demand and supply give rise to price of a good or a service.

Various types of markets: In microeconomics, we can find different types of markets. Some of these markets include perfection competition, monopoly, duopoly, oligopoly, monopolistic competition, etc. Though, each of these markets can be regarded as theoretical examples, yet one can find such markets in the real world.

Firms: Firms are business units or production houses which produce goods and services and sell them in markets. In an economy, for a given industry, there can either be number of firms or few firms or sometimes there can only be one or two firms.

Macroeconomics

National income: National income is the concept where an estimation of the total economic activity of a nation or an economy is done for a period of time. National income can be further subdivided into gross domestic product, gross national product, net national income, per capita income, purchasing power parity, etc. Under national income, the concept of welfare economics can be observed on the basis of money earned by an average person in one year and how much money is spent on basic necessities.

Economic growth: Economic growth studies how can economy can increase the market value of its goods and services over a period of time. It can be measured using percentage difference of gross domestic product over a period of time, usually one year. Today, the concept of economic growth is of major concern for most nations in the world as only a handful of countries are considered to be developed and many of the nations in the world are still developing.

Business cycles: Business cycle is a phenomenon which explains the rise and fall of economies. In other words, the fluctuations in overall production, trade and economic activity over several years if plotted on a graph can show period of expansion or growth, followed by contracted or recession and sometimes depression. The recession that occurred in 2008 and The Great Depression that occurred in 1930s is a classic example of depression. Studying business cycles is perhaps the most important part of macroeconomics so as to avoid them in the future. Business cycle questions are frequently asked by many universities and business schools and hence, we have numerous questions on this topic.

Fiscal and monetary policy: This brings us to how to control the fluctuations in an economy and to make it more stable. Fiscal and monetary policies are those rules or regulations put in place by governments to control runaway economies which lead to fluctuations in the long run. While fiscal policy is the implementation of system of taxation to control an economy, monetary policies are those rules and regulations put in place by the central monetary authority or the central or the federal bank which controls the supply of money through interest rates. Various questions and essays covering fiscal and monetary policies can be found in our solution library.

Unemployment: Study of unemployment is part of macroeconomics. According to one estimate, there are around 200 million unemployed people in the world in 2012. For most countries, unemployment has become one of the major problems to handle. Unemployment can be categorized as full unemployment, partial unemployment, cyclical unemployment, etc.

Questions and Case Studies: These are some of the concepts that have been covered in our solutions in Solution Library. Apart from the above mentioned topics, one can find several questions and case studies from the Ivy League Universities in Economics.