Economics for Business- Assignment
Added on 2020-10-05
13 Pages3286 Words454 Views
Economics forBusiness
ContentsINTRODUCTION...........................................................................................................................1LO1 Understand the language of economics...............................................................................1LO2 Basic methodology and models used in Economics and their application to real-lifesituations......................................................................................................................................2LO3 Demonstrate the ability to analyse real world situations that occur in economy................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONEconomics for business include the part of economics knowledge which assists the businessorganisations to make appropriate business decisions (Suleiman and et. al., 2012). Such theoryhelps the managers to assess the practical issues that are faced by organisations working atinternational level. Present essay is based on British Cheddar cheese in UK. This assignmentincludes the various aspects of economics and its application in business organisations. Itincludes the supply and demand analysis to determine the price of a product. Also, it covers thefactors that affect the demand and supply and in turn the price determination of a product. Also itincludes the real life considerations that are to be kept in mind by enterprises to arrive at the finalselling price of product.LO1 Understand the language of economicsEconomics is the study of how societies, governments, businesses, households, andindividuals indulge in allocation of resources as resources are limited in response to unlimitedhuman needs (Petria, Capraru and Ihnatov, 2015). The language of economics is all about how aperson utilizes limited resources for the satisfaction of unlimited wants such that it results inmaximum satisfaction. This is the subject matter of Economics.As people live in an economy, it is imperative to study economics because economicsaffects almost every activity happening in the world. Everyone is a part of economic systemwhere economic activities take place every minute. Economics is based on the concept thathuman wants are infinite and keep on changing and evolving constantly resources against whichresources available are limited and scarce. This excess of wants over what can be produced withthe aid of limited resources available is the essence of economics. This brings about the basiceconomic problem of scarcity. Thus, in result brings the choice of what to produce, how toproduce and who will finally consume the finished products. The study of economics helpspeople in making choices in relation to business entities driving to gain profitability, consumersseeking for more of less quantity of goods and services. It also aids government in trying to makepolicies in a manner that aims at welfare of society.Economics depicts the behaviour of business organisations in relation to taking decisionsabout allocation of scarce resources to fulfil the needs and preferences of its wide base ofcustomers. It includes the factors that determine the demand and supply of products and servicesof an economy. The economic decision of what to produce of business organisations is based1
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