MEFA UNIT 1 (1)

Intermediate goods and transfer payments.

To optimize operations and boost profitability.

The application of economic methods in the organizational decision-making process.

To sell a maximum amount of goods with minimum advertisement costs.

Decision making under certainty, resource allocation, cost-benefit analysis, and market analysis and forecasting.

The process by which equilibrium is achieved, including both equilibrium and disequilibrium.

The integration of economic theory with business practice for facilitating decision making and forward planning by management.

Maximizing output to meet customer demand.

The utility of the good begins to diminish.

Profit maximization.

The production, distribution, and consumption of goods and services.

By guiding decisions related to customers, competitors, suppliers, and internal operations.

Issues such as quantity to supply, pricing, production methods, and profit maximization.

Needs, wants, preferences, and requirements of consumers.

At constant prices (real income) or market prices (nominal income).

As the study of production, consumption, and distribution of goods and services.

Joel Dean with the publication of his book in 1951.

To resolve internal issues arising in business operations.

Adam Smith.

Economic aspects of managerial decisions and those managerial decisions that have an economic context.

It moves from general facts to particular assumptions and builds theories.

Government’s expenditure on final consumer goods.

Economic, social, and political environments.

It can be imaginative and far from reality, leading to utopic solutions.

It affects decisions on how many hours to work and play, which is fundamental to the labor market.

By making operations more efficient and effective, ensuring wise resource use and goal achievement.

The total value of final goods and services produced by normal residents during an accounting year, after adjusting for depreciation.

Taxes, depreciation, and non-factor inputs (raw materials).

Goal achievement and dealing with practical situations or problems.

Only a particular point of equilibrium.

Income Method, Production (Value-Added) Method, and Expenditure Method.

It involves making decisions about the future, which includes levels of risk and uncertainty.

Static analysis is far from reality, while dynamic analysis is nearer to reality.

As the applications of economics theory and methodology to business administration practice.

Earning and spending money to satisfy wants such as food, clothing, and shelter.

Rules and principles to facilitate the attainment of desired economic goals of management.

They are not competitive but complementary to each other.

It includes logical reasoning on the part of the economist or analyst.

Planning, organizing, staffing, directing, and controlling.

GNP at MP = GDP at MP + Net Factor Income from Abroad (NFIA).

It is Net National Product (NNP) at Factor Cost (FC).

Logical thinking and creative skills for decision making and problem-solving.

Because it involves the application of different economic principles, techniques, and methods to solve business problems.

Domestic Income + NFIA = National Income.

Economics and Management.

A practical and logical approach.

The text does not specify, but generally includes production, income, and expenditure methods.

One-third.

A method that involves assuming factual information and using logical reasoning to arrive at a conclusion.

By adding the value added by all firms.

It removes the need for experimentation.

Private Sector’s Expenditure on final consumer goods.

They assist organizations in making rational, progressive decisions by analyzing practical problems.

Businessmen strive for maximum profits by buying materials at a cheaper cost.

Investment or Capital Formation.

NNP at MP = GNP at MP - Depreciation.

Market demand, costs and benefits.

Statistics and experimentation.

It is often difficult to gather and access the facts required for experiments.

To understand their impact on the organization.

To produce maximum quantity of goods of a given quality at a reasonable cost.

The total value of final goods and services produced within a domestic territory during an accounting year, after adjusting for depreciation.

Problems related to a particular organization, making it a part of microeconomics.

By providing tools to deal with business-related problems and uncertainties.

To determine the effectiveness of operations within an economy.

By adding all factors of production (rent, wages, interest, profit) and mixed income of self-employed.

They equally affect the functioning of the business.

Y = C + I + G + (X - M)

Price determination of a product considering competitors and market conditions.

GDP at Market Price (MP).

As the application of economic concepts and analysis to the problems of formulating rational managerial decisions.

Scarcity and choices.

Depreciation and taxes.

1. Determining and defining objectives. 2. Collection and analysis of data. 3. Developing and analyzing possible courses of action. 4. Selecting a particular course of action.

It is simple and convenient, being observation-based and easy to practice.

'X' is Exports and 'M' is Imports.

Prof V K R V Rao in 1931-32.

Deductive Method and Inductive Method.

As simple, objective, and rational calculations.

Because it deals with quantities.

Used by those believing in classical theories.

Households, businesses, governments, and the banking system.

Works under the science model.

The market, which is part of the economy as a whole.

Economic theory.

Accounting, finance, statistics, mathematics, production, operations research, human resources, marketing, etc.

The consumer’s behavior towards a product or service.

The investigation of a particular topic from the perspective of an economist, including processes like production, consumption, and employment.

Volume of production, process, capital, and labor required.

Deductive Method and Inductive Method.

Unrealistic assumptions of perfect competition and perfect knowledge.

1. Provides tools and techniques for decision-making. 2. Shows the interaction between various areas in which the firm operates.

Observation, Logical reasoning, Experimentation.

Value of Output minus Value of non-factor inputs.

Proper allocation of the organization’s capital.

The finite nature and availability of resources.

Dadabhai Naoroji in 1867-68.

Valuable tools and techniques to make smart, strategic decisions.

To determine business goals and targets and assess the organization's position.

The issue of equity.

No, they are not included unless through an IPO.

By creating the impression of scarce supply to influence consumer behavior.

CSO merged with the National Sample Survey Organization to form the National Statistical Organization.

Money is used to purchase goods and services, flowing in one direction while goods and services flow in the opposite direction.

Generalised results.

It does not show the path of change, only the conditions of equilibrium.

As a 'still picture'.

The science and art of getting things done through people in formally organized groups.

Tools and techniques useful in decision-making.

It is assumption-based, which can lead to invalid solutions.

Through choices about sharing and using those resources.

Poverty and Unbritish Rule in India.

NNP at FC = NNP at MP - Net Indirect Taxes (NIT).

In 1948-49.

Dr. P C Mahalanobis.

The price of a rare item will be higher than that of a common one.

Ministry of Statistics and Programme Implementation.

Practical.

Works under the social science model.

Less structured.

Through economic conditions, GDP, and economic policies.

Progressing from a practical outlook to a scientific problem.

Efficiency of allocation and equity (distributive fairness).

It is very practical and applicable, being simply descriptive.

It can be combined with deductive methods or deductive reasoning.

National Accounts Statistics.

Abstract.

Analytical, priori or abstract method.

Confirmation of the making of the hypothesis.

In dynamic economics, all quantities must be dated and refer to different points of time.

Net Exports are calculated as X - M.

Goods produced for self-consumption and estimated rent of self-occupied property.

Behavioral economics.

If analysts lack balanced judgment, they may extract insufficient data.

To influence consumer choice through perceived scarcity.

In static economics, all economic variables refer to the same point of time.

The National Statistical Office (NSO).

Used by those who believe in Neo-classical theories.

Where money goes and what it's exchanged for in the economy.

Historical, empirical or posterior method.

Highly structured method.

As a 'movie' of the market.