1. 9 Feb 2012

2. What is Elasticity of Demand & Elasticity of Supply?

3. Elasticity
Degree of responsiveness of Demand or Supply to unit change in Prices
Or Technically: Price elasticity of demand (PED or Ed)
Measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.
Holding constant all the other determinants of demand, such as income

4. Bounded Rationality

5. Bounded Rationality
Bounded rationality is the idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.
Behavioural Economists say that the idea of completely rational consumer behaviour is bunk

6. What is The Invisible Hand

7. The Invisible Hand Given by Adam Smith
All Individuals looking after their interests, market will regulate itself
“Laissez Faire”

8. What is Budget Deficit

9. Budget Deficit
Budget Deficit is the Excess of Spending of a Govt to its revenues
Deficit Financed through:- External Borrowing or Printing of Currency
IMF supports reducing Budget Deficit
Avoiding the Debt Crisis
Keynesian Economics says a Govt should spend itself out of Recession
India’s Budget Deficit targeted at around 5%

10. Stagflation

11. Stagflation Stagnation and Inflation
GDP growth zero, however inflation increases
Money loses its value
Austria, Afghanistan, Zimbabwe

12. Real GDP & Nominal GDP

13. Real & Nominal GDP GDP adjusted for Rate of Inflation
Value of Goods and Services produced in the economy at Base Year Prices
Nominal GDP is not adjusted for Prices
India Gross Domestic Product is worth 1729 billion dollars or 2.79% of the world economy

14. Demographic Dividend

15. Demographic Dividend
When the Population of a country ages, its productivity per person increases
There are more people in the working population
However, doesnot last forever
Population stabilises

16. Natural Monopoly
A type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry. Because it is economically sensible to have certain natural monopolies, governments often regulate those in operation, ensuring that consumers get a fair deal

17. G20

18. What is G20? G20 is a group of 20 major economies
19 countries plus the European Union
Collectively, the G-20 economies account for more than 80 percent of the global  (GNP)
80 percent of world trade (including EU intra-trade)
Two-thirds of the world population
Self Appointed Group
In operation since 2008
Followup to G8

19. G20 Members Argentina Australia Brazil Canada China France Germany
India
Indonesia
Italy
Japan
Mexico
Russia
Saudi Arabia
South Africa
Korea
Turkey
United Kingdom
United States
European Union*

20. Sources www.investopedia.com http://www.economist.com/economics-a-to-z
Micro Economic Theory (Ferguson & Gould)
Macro Economic Theory (Dornbusch & Fisher)

21. To keep Smiling All day, remember 3 things you are grateful for in the morning