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ECONOMICS ANALYSIS
ASSIGNMENT

Submitted To: Submitted By:

Dr. Farooq Yahya Butt M. Junaid Aalam
Roll No. 40
EMBA (A)
Contact # 0313-6556049

Institute of Business Administration (IBA)

University of Punjab
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Table of Content Page No.

1. Needs …………………………………………………………………… 4
2. Wants……………………….…………………………………………… 4
3. Scarcity…………………………………….……………………………. 4
4. Shortage…………………………….…………………………………… 4
5. Resources …………………………………………….…………………. 4
6. Means ……………………………………….…………………………... 5
7. Trade Off………………………………..……………………………….. 5
8. Opportunity costs………………..………………………………………. 5
9. Land ……………….……………………………………………………. 5
10. Labor………….…………………………………………………………. 5
11. Capital ……………………….………………………………………….. 5
12. Entrepreneurship……………………………...…………………………. 5
13. Producers……………………..………………………………………….. 6
14. Consumers……………………………………..………………………… 6
15. Capital Goods………………………………………..…………………... 6
16. Consumer Goods………………………………………………………… 6
17. Production possibility curve…………………………………………….. 6
18. Traditional Economy………………………………………..…………… 6
19. Command Economy …………………………………………………..… 6
20. Market Economy…………………………………………..…………….. 7
21. Black Economy ……………………………………………….………… 7
22. Short Forecast …………………………………………………...………. 7
23. Intermediate Forecast…………………………………………….……… 7
24. Long Forecast……………………………………………………………. 7
25. Demand………………………………………………………………….. 7
26. Unitary elasticity………………………………………………………… 8
27. Elasticity…………………………………………..…………………….. 8
28. Inelasticity………………………………………...……………………... 8
29. Perfect elasticity…………………………………………………………. 8
30. Perfect Inelasticity………………………………………….……………. 8
31. Law of Demand……………………………………….…………………. 8
32. Law of Supply…………………………………………………………… 9
33. Equilibrium……………………………………………………………… 9
34. Surplus…………………………………………………………………… 9
35. Supply……………………………………………………………………. 9
36. Total Revenue …………………………………………………………… 9
37. Total Cost ……………………………………………………………….. 9
38. Fixed cost ………………………………………...……………………... 10

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39. Average Fixed cost………………………………………………………. 10
40. Variable cost……………………………………………………………... 10
41. Eco profit ………………………………………………………………… 10

42. Sunk cost…………………………………………………………………. 10

43. Marginal cost ……………………………………………………………. 10
44. Marginal Revenue ………………………………………………………. 10
45. Zero Eco profit……..……………………………………………………. 11
46. Break Event point………………………………………………...……… 11
47. Monopoly……………………………………….……………………….. 11

48. Oligopoly………………………………….…………………………….. 11
49. Perfect Competition …………………………………………..………… 11
50. Monopolistic Competition……………………………...……………….. 11
51. Duopoly……………………………………..…………………………… 12

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NEEDS
Example

 Transportation: Person is travelling for business or work purpose or Transportation for daily
commuting
 Utility bills: A grocery bill of Basic nutritious food and clean water are essential for survival
 Entertainment: Some form of recreation for mental well-being.

WANTS
Example

 If a person is paying bills for example Netflix or for video games that belongs to your wants, they
are not necessary for your survival
 Buying expensive chips and soda, then some of those things are wants rather than needs.
 A person is traveling for amusement, then it will be categorized as want.
 Expensive vacations, the latest gadgets, or high-end entertainment systems are wants rather than
essential for well-being.

SCARCITY
Example
• Limited funding for public schools: Government announces a small part of budget every year for public
schools due to limited amount.
• Limited availability of specialized training programs for certain professions: Such as Nuclear Scientists
or Astronauts (Facilities) are limited.

SHORTAGE
Example

 Energy: Shortages of energy resources like oil, natural gas, or electricity can occur due to
geopolitical tensions, disruptions in production, or extreme weather events affecting energy
infrastructure.
 Housing: In rapidly growing urban areas, there may be shortages of affordable housing due to
high demand and limited availability of land for development.

RESOURCES
Example

 Natural Resources Timber: Wood obtained from forests for use in construction, furniture making,
and paper production.
 Factory Workers: Employees who work in manufacturing plants to assemble products like
automobiles, electronics, or textiles.

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MEANS
Example

 A factory worker assembling products

 A software developer writing code
 A teacher providing education

TRADE OFF
Example

 Deciding whether to work or acquire a college education. The potential income that could have
been made by working during that time is known as the opportunity cost of attending education.
 Maintaining a balance between protecting the environment and economic growth. While
increasing industrial activity could help the economy, it might also be bad for the environment.

OPPORTUNITY COSTS
Example

 Rather than driving to work, an employee rides the train. Traveling by train takes 70 minutes,
whilst driving takes 40 minutes. An hour lost every day to being somewhere else is the
opportunity cost.

LAND
Example

 Business idea contains raising a live stock or agricultural work then rural area are more beneficial
for these type of business idea.

LABOR
Example

 Childcare staff
 Metro train Station Controller

CAPITAL
Example

 Example of capital include the machinery and equipment utilized in manufacturing processes.
 Marketing Capital includes Funds for advertising and promotions.

ENTREPRENEURSHIP
Example

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  Jeff Bezos established Amazon in 1994.
 Zuckerberg was a co-founder of Facebook.

PRODUCERS
Example

 Film Production Studios: Entertainment industry producers, such as Warner Bros. and Disney
 Automobile manufacturers (such as General Motors and Honda): Businesses in the automotive
sector create, produce, and market automobiles to end users.

CONSUMERS
Example

 Gym and fitness equipment consumers

 Health care equipment consumers
 Travelling consumers

CAPITAL GOODS
Example

 Agricultural machinery including harvesters and tractors

 Machines for diagnosis Medical devices, such as MRI scanners and X-ray machines

CONSUMER GOODS
Example

 Appliances, such as washing machines and refrigerators

 Clothes, Products classified as consumer products include dresses, shirts, pants, and shoes.

PRODUCTION POSSIBILITY CURVE

Example

 The nation may function on the PPC and produce a combination of industrial and agricultural
goods if resources are distributed fairly equitably between agriculture and industry.

TRADITIONAL ECONOMY
Example

 Namibia's Himba people continue traditional economic methods based on nomadic pastoralism.
Cattle and goats play an important role in their economic and cultural lives.
 Some rural groups in Papua New Guinea practice traditional subsistence agriculture, which
involves families cultivating crops for their own food and exchanging items using traditional
practices.

COMMAND ECONOMY
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Example

 Resource Allocation: The government makes decisions about the distribution of resources,
including labor, capital, and raw materials, centrally.(North Korea and Cuba)
 State Control over Production Means: The government owns or controls the majority of
businesses, industries, and resources.(North Korea and Cuba)

MARKET ECONOMY
Example

 Japan has a market-oriented economy with a strong industrial base.

 The economy of the Netherlands is market-oriented and heavily dependent on foreign trade.

BLACK ECONOMY
Example

 Unreported Labor: In order to avoid paying taxes and social security obligations, workers may
work unreported or under reportedly.
 Unreported Income: It is possible for people or companies to fail to disclose all of their income to
tax authorities.
 Smuggling: The illicit trade in products, which includes the smuggling of illicit goods, can bolster
the black economy.

SHORT FORECAST
Example

 Economists frequently offer short-term forecasts concerning the inflation rates.

 Financial analysts frequently issue short-term forecasts for stock market indices how they will
perform over the following several weeks or months.

INTERMEDIATE FORECAST
Example

 Predictions for Central Bank Interest Rates over an Intermediate Term

 Forecasts for house prices and market trends in the coming years

LONG FORECAST
Example

 Predictions for the long-term evolution of the labor market, taking into account issues like
automation, skill demands, and changes in work structure.
 Long-term forecasts on environmental sustainability, including predictions for the development
and implementation of eco-friendly practices and policies.

DEMAND
Example

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  Fuel: Customers may be willing to buy more fuel as the price of gasoline drops, increasing the
quantity demanded.
 Individual Safety Gear (PIE): The need for personal protective equipment (masks, gloves, and
hand sanitizers) rises dramatically during public health emergencies like pandemics.

UNITARY ELASTICITY
Example

 Suppose the price of gasoline increases by 10%, and as a result, the quantity demanded decreases
by exactly 10%. In this scenario the elasticity will be unitary.
 If the price of movie tickets decreases by 5%, and as a result, the quantity demanded increases by
exactly 5%, the price elasticity of demand would be unitary

ELASTICITY
Example

 Luxury items include high-end designer clothing, luxury cars, and premium electronic gadgets.
 Demand for vacation travel, particularly to popular tourist locations, is often elastic. Customers
may decide to postpone their trip plans or choose different destinations when airfares and hotel
costs rise.

INELASTICITY
Example

 Smoking cigarettes: Even with the established health hazards linked to smoking, cigarettes are
frequently regarded as inelastic.
 Tea and coffee: The demand for coffee and tea among those who enjoy them can be inelastic.

PERFECT ELASTICITY
Example

 The short-term demand for some agricultural products, like wheat or corn, may be almost
perfectly elastic in particular agricultural markets if the items are identical.
 Commodities in Perfect Competition The demand for each seller's product may be seen as
perfectly elastic in a perfectly competitive market with multiple vendors offering the same
product

PERFECT INELASTICITY
Example

 Unique Art or Collectibles: Perfectly inelastic demand may be shown for extremely uncommon
and distinctive goods, such as a rare collectible or a work of art.
 One essential drug for diabetics is insulin, which can show perfectly inelastic demand.

LAW OF DEMAND
Example

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  Think about the market for smartphones. Let's say a popular smartphone model costs 80k when it
is first released. At this rate, people are willing to buy a certain quantity of smartphones. Let's say
100,000 pieces sell for 80k apiece. Let's imagine that the same smartphone costs 70k less because
of a promotion. According to the law of demand, the quantity demanded increases in reaction to
the decreased price.

LAW OF SUPPLY
Example

 Adoption of Renewable Energy: The law of supply in the oil market may also be impacted by
moves toward renewable energy sources. The demand for oil may decline as nations use more
renewable energy sources, which would force oil companies to modify their output

EQUILIBRIUM
Example
 When the amount of wheat farmers are willing to produce (quantity provided) meets the quantity
required by customers and businesses, equilibrium in the market for that particular agricultural
crop, such as wheat, is reached.
 When the number of students requesting admission in educational programs meets the capacity of
educational institutions to accommodate the student’s equilibrium in the market for education
services is reached.

SURPLUS
Example
 If good weather results in large harvests, some crops may be oversupplied in agricultural markets.
Farmers may receive reduced prices as a result, and there may be an abundance of the specific
crop.
 In the labor market, a surplus occurs when there is an excess supply of labor, resulting in
unemployment.
SUPPLY
Example
 Farmers supply crops such as wheat, corn, or soybeans to the market
 To accommodate consumer demand, technology companies manufacture devices such as tablets,
laptops, and smartphones.

TOTAL REVENUE
Example

 A bookshop that charges Rs10 for each of the fifty copies of a book it sells each week. Rs500 is
the total revenue each week.

TOTAL COST
Example

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  An agricultural operation in agriculture has fixed expenses such as rent for the land and
depreciation on the machinery. Seeds, fertilizers, and labor for planting and harvesting are
Example of variable costs. The amount of crops produced determines the total cost of the farming
business.
FIXED COST
Example
 The fees of hiring security services for a set length of time are predetermined. For security
services, the company pays a fixed price, regardless of changes in sales or output.

AVERAGE FIXED COST

Example

 Tuition center have set expenses for staffing, utilities, and rent. The average fixed cost would be
15,000 / 500 hours, or 30 for each tutoring hour, if the institution charges 15,000 per month for
tutoring.
VARIABLE COST
Example

 The cost of packaging materials, such as boxes, bags, or containers, is a variable cost
 For Transformer manufacturing companies the cost of raw materials (such as copper) is a variable
cost

ECO PROFIT
Example
 A farmer explicitly pays for machinery, fertilizer, and seeds when investing in a new crop. The
opportunity cost of utilizing the land for different crops or uses is one example of an implicit cost.
The farmer makes an economic profit if harvest revenue surpasses both explicit and hidden costs.

SUNK COST
Example
 When a manufacturing company purchases new machinery, it often finds that the equipment
becomes outdated sooner than anticipated due to technological improvements. The antiquated
machinery's purchase price is sunk.
 Consider an individual who purchases a yearly subscription to a gym but later decides not to use
it. The cost of the unused subscription is a sunk cost.
MARGINAL COST
Example

 The cost of making one more dish from the menu could be the marginal cost in a restaurant.
 The cost of educating one more student may represent the marginal cost in an educational setting.

MARGINAL REVENUE

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Example
 Airlines frequently adjust ticket prices to maximize revenue.
 A manufacturer of widgets has to choose whether to make and market more of them. The money
made from selling one additional widget is the marginal revenue in this situation.

ZERO ECO PROFIT

Example
 Certain internet services, especially those that provide free versions monetized by advertisements
could run at a loss.

BREAK EVENT POINT

Example
 Restaurants frequently use variables including rent, labor costs, ingredient costs, and electricity
expenditures to determine their break-even threshold.
 Healthcare providers examine the break-even point for particular medical procedures or services,
including for facility costs, employee pay, and equipment prices.

MONOPOLY
Example
 Intel has historically held a dominant position in the market for x86 microprocessors, which are
widely used in personal computers
 Google is a major player in the search engine market, holding a dominant position with its search
engine service
OLIGOPOLY
Example
 The smartphone market is another example of an oligopoly. Companies like Apple, Samsung, and
Huawei have a significant market share
 A few large producers, like Arcelor Mittal, Nippon Steel, and Baowu Steel Group, are frequently
the defining characteristics of the steel sector.

PERFECT COMPETITION
Example
 In certain local bazaars or street marketplaces, where different sellers offer comparable or exact
goods.
 Certain low-skilled labor markets may exhibit perfect competition features if employers require a
high number of workers with such skills and workers provide similar skills.

MONOPOLISTIC COMPETITION
Example

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  The fitness sector, where several gyms and fitness facilities compete for clients, is an example of
monopolistic competition.
 Monopolistic competition governs the automobile industry's operations. Vehicles with different
features, designs, and performance levels are produced by several automakers.
DUOPOLY
Example
 In the market for mobile operating systems, Apple's iOS and Google's Android have established a
duopoly
 The credit card industry is often considered a duopoly with Visa and MasterCard dominating the
market.

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