Welcome to the wonderful world of Economics! This is going to set you on track to become literate in economics in no time! The aim of the blog is to introduce you to Economics and to provide you with an insight into the functioning, composition and interdependence of the distinguishable decision-makers and sectors in the economy.
The rationale behind the subject:
The first economic assumption is maximum profit. The goal of any company is to maximise profits, which cannot happen in isolation from the rest of the economy. Interaction with other economic participants is essential. For production, production factor owners or other producers supply inputs. For selling, interaction with consumers is necessary. Markets will organise most of these interactions and the market is dynamic. Participants and markets are not constant, stable and non-developing entities. Tastes and preferences, production techniques, inflation, unemployment, interest rates and taxes are variables that change frequently. A business administrator without any knowledge of economics, who ignores these instabilities in the economic sphere, may find that his company is making losses and eventually will be forced to leave the industry.
Economics will introduce you to the functioning of the economy. It will deal with the different economic participants, markets and policy makers in the economy. All these participants will influence the performance of any company. This course is an introduction to economics. In later modules, more in-depth discussion on each of these economic participants and topics will follow.
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