Economy Theories Solve Customer Problems PDF Download

Author: Johnny Ch Lok
Publisher:
ISBN:
Category :
Languages : en
Pages : 336

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Book Description
Economy theory solves business problem, manager can use economics to strategize and solve a variety of business problems. Is it bossible? In fact, the basic problem of an economy ca be solved either by the decisions of the government or by the market through interactions of buyers and sellers. How to judge whether it is one good economic theory? A good theory is simple enough to be understood, when complex enough to capture the key features of the object or situation being studied. Somethimes economists use the term model instead of theory. For example, the most common four economic theories may include: Since the 1930 s, four macroeconomic theories have been proposed: Keynesian economics, monetarism, the new classical economics and supply-side economics . All of these theories are based, in varying degree. So, applied economics solves economic problems may be by solved by providing informaton on how people, businesses and governments behave.However, business economics is a field in applied economics which uses econoic theory and quantitative methods to analyze business. Business economics focused on the economic issues and problems related to business organizations. Business economics also covers most of the problems that a manager or an establishment faces for example, price theory, on the other hand, helps the firm in understanding how prices are determined under different consumer emotion or external economic environment etc. factors. Moreover, business economics and quantitative methods also applies economic theory to the study of organizations. for example, the principal-ahent problem has become a standard factor in political science and economics, basic economic theory explains how and why that when demand exceeds supply, producers tend to raise price, or public choice theory how and why affect economic output, due to global economic outlook is significant trade uncertainty.So, economists explore how individuals and businesses can help secure a healthy environment, when they attempt to find the most right economic theories to help businesses to solve their business problems. In general, it makes use of statistical and analytical tools to assess economic theories in solving practical business problems. For example, rapid devaluation solutions can be applied to solve economic crisis, fiscal occurrence in the 1930 s. It helps to stimulate demand and creates jobs to solve social unemplyment challenge in 1930s. This will provide some relief to businesses and tax cut increases disposable income in 1930s global economic fiscal crisis occurrence. For anther exmaple, the gig economy is enabled by technology, such as robotic productive tool invention, it can help factories to raise efficiency to manufacture as well as reduces labors number. So, effective economic theory may help managers to solve any organizational problems easily.⦁How new economic development in oil industry The future global economic growth, it will influence personal incomes and GDP rise. They would carry different weight in different countries at different times. Starting from low levels of incomer and economic development. Household consumption will change from being dominated by basic heat to rapidly rising energy use for higher levels of comfort in space heating and cooling ( and large dwellings), and greater use of electrical appliances, finally to a degree of saturation influenced by the income distribution patterns of the country concerned. Income distribution typically changes very slowly, so that the technical market for heart will never be saturated because there will always be a proportion of poor people living in small spaces less comfortably than the average. Industrial energy consumption will be influenced by technical efficiency within each sector, and by changes in the structures of the economy, e.g. changing proportions of agriculture, heavy and light industry, and services.

Author: Johnny Ch Lok
Publisher: Independently Published
ISBN: 9781653715961
Category :
Languages : en
Pages : 44

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Book Description
⦁The problem of economic growthIf productive capacity grows, an economy can produce progressively more goods, which raises the standard of living. The increase in productive capacity of an economy is called economic growth. There are various factors affecting economic growth. The problems of economic growth have been discussed by numerous growth models, including the Harrod-Domar model, the neoclassical growth models of Solow and Swan, and the Cambridge growth models of Kaldor and Joan Robinson. This part of the economic problem is studied in the economies of development. ⦁Needs and wants problemsNeeds are things or material items of peoples need for survival, such as food, clothing, housing, and water. Everyone has a different needs and wants. Until the Industrial Revolution, the vast majority of the world's population struggled for access to basic human needs. Wants are effective desires for a particular product, or for something that can only be obtained by working for it. While the fundamental needs of survival are key in the function of the economy, wants are the driving force that stimulates demand for goods and services. To curb the economic problem, economists must classify the nature and different wants of consumers, as well as prioritize wants and organize production to satisfy as many wants as possible. ⦁Five bases problems of economyIn our societies, in general, our societies will have these similar problems The following points highlight the five basic problems of an economy. The problems are: 1. What to Produce and in What Quantities? 2. How to Produce these Goods? 3. For whom is the Goods Produced? 4. How Efficiently are the Resources being Utilised? 5. Is the Economy Growing?. Problem 1: What to Produce and in What Quantities?The first central problem of an economy is to decide what goods and services are to be produced and in what quantities. This involves allocation of scarce resources in relation to the composition of total output in the economy. Since resources are scarce, the society has to decide about the goods to be produced: wheat, cloth, roads, television, power, buildings, and so on. Once the nature of goods to be produced is decided, then their quantities are to be decided. How many tonnes of wheat, how many televisions, how many million kws of power, how many buildings, etc. Since the resources of the economy are scarce, the problem of the nature of goods and their quantities has to be decided on the basis of priorities or preferences of the society.

Author: Johnny Ch Lok
Publisher:
ISBN: 9781653710478
Category :
Languages : en
Pages : 44

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Book Description
⦁Demand and supply principle can misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same timeWhy can demand and supply principle misuse to predict consumer behaviour when the two firms participate advertisement to promote their products in the same time ? I shall explain as below: Assume that two competing firms must decide whether to have a big advertising budget. Advertising would allow one firm to steal some of the other's customers. But when they both advertise, the effects on customer demand cancel out. The firms end up having spent money needlessly.We might expect that neither firm would choose to spend much on advertising, but the model shows that this logic is off base. When the firms make their choices independently and they care only about their own profits, each one has an incentive to advertise, regardless of what the other firm does. When the other firm does not advertise, you can steal customers from it if you do advertise, when the other firm does advertise, you have to advertise to prevent loss of customers. So, these two firms end up in a bad equilibrium in which both have to waste resources. This market can not apply demand and supply principle to predict consumer behaviours because they depends advertisement to promote their products. If these two firms advertise their products in the same time. Then, it is not possible that if one firm increases it price and it will cause its customer number loss, due to its advertise can help it to attract customers to consider its product from television or radio or newspapers or magazine promotion channels. So, I suppose that these two firms decide to increase their price, when they advertise their products to let customers to know in the same time. They will not lose their customers or reduce their customers easily. Because their customers can be persuaded to choose to buy their products to compare other similar products in preference. So, their increasing price will not influence their customers number lose easily. It explains that demand and supply principle is not right to this case, so demand and supply principle can misuse to help them to predict consumer behaviours when they advertise their products in the same time. Also, demand and supply principle is not suitable to them to predict consumer behaviours when they advertise their products in the same time. They will do wrong prediction to their consumers purchase desire when they advertise their products in the same time.ON conclusion, using these demand and supply and price elasticity techniques, economists derive specific prediction for how consumers choose which products to buy, how households save, how firms invest, how workers search for jobs, as well as for how these actions depend on the particulars. They can help them to predict job and consumption behaviours more accurate, it depends on whether the situation is right, such as both competition firms participate to advertise their products in the same time case, it is not right to apply above economic principle to predict consumer behaviours. They will get wrong prediction when they apply this principle to predict consumer behaviours.

Author: Milton Friedman
Publisher: Transaction Publishers
ISBN: 1412809657
Category : Business & Economics
Languages : en
Pages : 377

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Book Description
Economics is sometimes divided into two parts: positive economics and normative economics. The former deals with how the economic problem is solved, while the latter deals with how the economic problem should be solved. The effects of price or rent control on the distribution of income are problems of positive economics. The desirability of these effects on income distribution is a problem of normative economics. Within economics, the major division is between monetary theory and price theory. Monetary theory deals with the level of prices in general, with cyclical and other fluctuations in total output, total employment, and the like. Price theory deals with the allocation of resources among different uses, the price of one item relative to another. Prices do three kinds of things. They transmit information, they provide an incentive to users of resources to be guided by this information, and they provide an incentive to owners of resources to follow this information. Milton Friedman's classic book provides the theoretical underpinning for and understanding of prices. Economics is not concerned solely with economic problems. It is a social science, and is therefore concerned primarily with those economic problems whose solutions involve the cooperation and interaction of different individuals. It is concerned with problems involving a single individual only insofar as the individual's behavior has implications for or effects upon other individuals. Price Theory is concerned not with economic problems in the abstract, but with how a particular society solves its economic problems.

Author: Johnny Ch Lok
Publisher:
ISBN:
Category :
Languages : en
Pages : 336

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Book Description
Explaining how organizational strategy solving problemEconomy theory solves business problem, manager can use economics to strategize and solve a variety of business problems. Is it bossible? In fact, the basic problem of an economy ca be solved either by the decisions of the government or by the market through interactions of buyers and sellers. How to judge whether it is one good economic theory? A good theory is simple enough to be understood, when complex enough to capture the key features of the object or situation being studied. Somethimes economists use the term model instead of theory. For example, the most common four economic theories may include: Since the 1930 s, four macroeconomic theories have been proposed: Keynesian economics, monetarism, the new classical economics and supply-side economics . All of these theories are based, in varying degree. So, applied economics solves economic problems may be by solved by providing informaton on how people, businesses and governments behave.However, business economics is a field in applied economics which uses econoic theory and quantitative methods to analyze business. Business economics focused on the economic issues and problems related to business organizations. Business economics also covers most of the problems that a manager or an establishment faces for example, price theory, on the other hand, helps the firm in understanding how prices are determined under different consumer emotion or external economic environment etc. factors. Moreover, business economics and quantitative methods also applies economic theory to the study of organizations. for example, the principal-ahent problem has become a standard factor in political science and economics, basic economic theory explains how and why that when demand exceeds supply, producers tend to raise price, or public choice theory how and why affect economic output, due to global economic outlook is significant trade uncertainty.So, economists explore how individuals and businesses can help secure a healthy environment, when they attempt to find the most right economic theories to help businesses to solve their business problems. In general, it makes use of statistical and analytical tools to assess economic theories in solving practical business problems. For example, rapid devaluation solutions can be applied to solve economic crisis, fiscal occurrence in the 1930 s. It helps to stimulate demand and creates jobs to solve social unemplyment challenge in 1930s. This will provide some relief to businesses and tax cut increases disposable income in 1930s global economic fiscal crisis occurrence. For anther exmaple, the gig economy is enabled by technology, such as robotic productive tool invention, it can help factories to raise efficiency to manufacture as well as reduces labors number. So, effective economic theory may help managers to solve any organizational problems easily.In general, the main economic problems may include: What to produce in which quantities? How to produce? For whom to produce? How efficiency are the resources being utilized? Is the economy growth? So, economic problems are the science that studies human behavior in relationship with ends and scarce means that have alternative uses. In other way, it deals with the problem of choice, economic problems asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. Hence, it brings this question: What causes economic problems? It may be explained that goods and services . All economic problems that satisfy human wants and produced with the help of resources, such as land, labour, capital, and enterprise. These resources are scarce when wants are unlimited, due to scarcity of these resources, an economy can not produce all that goods and services as required by its citizens.

Author: Michael Mandler Associate Professor of Economics Harvard University
Publisher: Oxford University Press, USA
ISBN: 0195349202
Category : Business & Economics
Languages : en
Pages : 226

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Book Description
By examining the development of economics in the 20th century, this book argues that the breakthroughs of post WWII general equilibrium theory and its rejection of utilitarianism and marginal productivity have been misunderstood. Mandler maintains that although earlier neoclassicism deserved criticism, current theory does not adequately address the problems the discarded concepts were designed to solve, and that intractable dilemmas therefore appear.

Author: Michael Mandler
Publisher: Oxford University Press, USA
ISBN: 0195100875
Category : Microeconomics
Languages : en
Pages : 222

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Book Description
This text compares the economic theory of the early neoclassical economists with the theory of value of the post-World War II period, and in particular the Arrow-Debreu model of general equilibrium. It argues that many of the problems faced in the early part of the century, that led in many cases to revolutions in the 1930s and 40s, have not been successfully resolved by later theoretical work.

Author: John Lok
Publisher:
ISBN:
Category : Fiction
Languages : en
Pages : 50

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Book Description
What are our social customer and economic problems usually we will encounter in our lives. Can economists apply any economic theories to attempt to solve any economic or customer problems absolutely? Do economists apply any economic theories to solve any problems in any economic environment or situations or they need find the suitable economic theories to solve the suitable environment of economic or customer problems? In my this book final chapter, I shall attempt to indicate some customer problems in electronic commerce strategy aspect and I shall explain how to apply economic theories to solve online consumers buying problem. I hope my readers can learn how and why economic theories can be the best strategy to solve e-commerce customer problems in e-commerce industry.

Author: Johnny Ch Lok
Publisher:
ISBN:
Category :
Languages : en
Pages : 70

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Book Description
In businessmen profit earn aik vire, they can also apply behavioral economic theory to seek rationally to maximize, their rxpected, returns and had full knowledge of the data needed to succeed in this attempt, they knew the relevant cost and demand functions, calculated marginal cost and marginal revenue from all actions open to them, and pushed each line of action to the point at which the relevant marginal cost and marginal revenue were equal. Hence, for example, it is not by learning and applying appropriate mathematical formulas that one becomes and Nexpert or decision maker, bur rather by developing the required skills. often learned in the pool hall and in the firm through learning -by-doing. A training program for firm decisionmaking players, concentrating on math and engineering courses would by itself, not produce experts. Thus, behavioral assumptions should need to assume for optimal or rational intelligentchoice behavior. Moreover, there exists a variety of non-profit maximizing behaviors that have a positive probability of never failing. In fact, it has shown that firms that maximize profits are the least likely to be the market survivors.Hence, in different firms behavioral view, this sensitivity of outcomes to process can have important consequences for analysis at the level of market and economy, which assumes that consumer individual typically makes choices in their own best interest, " were best interest" is something that not incorporating into their calculations, the true costs and benefits of their choices.Hence, behavioral economy theory can help product sellers to predict consumer individual choice, attitude in order to find what the important factors influence they choose to buy the seller's products in preference. Also, behavioral economic theory is an analytical predictions, how intelligent individuals actually behave. This approach to choice behavior does not assume that individuals are in any way irrational, even through such behavior is expected to deviate substantively. Hence, the behavioral economic theory assumes humans are rational and maximum their individual self interest. In consumption view, in general, consumers choose to buy any products in preference, they will evaluate whether the product can bring the maximum economic or useful benefit to them in order to make the final purchase in our society. Such as organic food choice case, food consumers' choices, where people's may come from direct influence of other people's behavior and social norms on our behaviors. Then, theory assumes we independently know what we want and that our preferences are fixed. So, this standard theory is very good at explaining short -term decision-making.

Author: Johnny Ch LOK
Publisher:
ISBN:
Category :
Languages : en
Pages : 296

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Book Description
Something Behavioral (e.g., Prospect Theory) applies to investor share buying choiceWhat Is the Prospect Theory? Prospect theory assumes that losses and gains are valued differently, and thus individuals make decisions based on perceived gains instead of perceived losses. Also known as the "loss-aversion" theory, the general concept is that if two choices are put before an individual, both equal, with one presented in terms of potential gains and the other in terms of possible losses, the former option will be chosen. How the Prospect Theory Works Prospect theory belongs to the behavioral economic subgroup, describing how individuals make a choice between probabilistic alternatives where risk is involved and the probability of different outcomes is unknown. This theory was formulated in 1979 and further developed in 1992 by Amos Tversky and Daniel Kahneman, deeming it more psychologically accurate of how decisions are made when compared to the expected utility theory.The underlying explanation for an individual's behavior, under prospect theory, is that because the choices are independent and singular, the probability of a gain or a loss is reasonably assumed as being 50/50 instead of the probability that is actually presented. Essentially, the probability of a gain is generally perceived as greater. Although there is no difference in the actual gains or losses of a certain product, the prospect theory says investors will choose the product that offers the most perceived gains. Tversky and Kahneman proposed that losses cause a greater emotional impact on an individual than does an equivalent amount of gain, so given choices presented two ways--with both offering the same result--an individual will pick the option offering perceived gains. For example, assume that the end result is receiving $25. One option is being given the straight $25. The other option is gaining $50 and losing $25. The utility of the $25 is exactly the same in both options. However, individuals are most likely to choose to receive straight cash because a single gain is generally observed as more favorable than initially having more cash and then suffering a loss.Types of Prospect Theory According to Tversky and Kahneman, the certainty effect is exhibited when people prefer certain outcomes and underweight outcomes that are only probable. The certainty effect leads to individuals avoiding risk when there is a prospect of a sure gain. It also contributes to individuals seeking risk when one of their options is a sure loss.The isolation effect occurs when people have presented two options with the same outcome, but different routes to the outcome. In this case, people are likely to cancel out similar information to lighten the cognitive load, and their conclusions will vary depending on how the options are framed.*The prospect theory says that investors value gains and losses differently, placing more weight on perceived gains versus perceived losses. *An investor presented with a choice, both equal, will choose the one presented in terms of potential gains. *The prospect theory is part of behavioral economics, suggesting investors chose perceived gains because losses cause a greater emotional impact. *The certainty effect says individuals prefer certain outcomes over probable ones, while the isolation effect says individuals cancel out similar information when making a decision.