What goods and services to produce?

Module In Brief: introduces the basic economic theories and principles that drive a company’s day-to-day business decisions. You will also be familiarized with the basic economic problem of a business. This module also describes the concepts of demand, supply, and elasticity and how their relationship helps predict market outcomes. You will learn how demand and supply determine the prices of all the goods and services in a market-driven economy. Module Overview:Consider the last major sporting event that you watched on television. What did you give up to watch this show—the option of dining out with your friends or spending time with your family? Let us extend this example to other stakeholders. Think of how competing teams would have traveled to the event. Probably, they chartered a flight. What was their gain? How did the airline decide whether or not to accept the charter?We all make economic decisions every day of our lives. Economics is the science of making effective choices or decisions by examining the available alternativesThis module introduces the basic concepts of economics that will help you analyze and evaluate various alternatives and make effective day-to-day business decisions. To begin with, you will learn about the basic economic problem that a society faces. You will then apply this knowledge to analyze the problem and make decisions in the context of your business.Basic Economic ProblemThe basic economic problem in any society is how to allocate resources among individuals to meet their demands for what they want to consume. While the individuals’ needs are unlimited, the resources available to a society are limited. To address this problem, societies take into account the production, the sale, and the consumption of goods and services, and compare alternative ways of using the limited resources. Each society, therefore, must find answers to these three basic questions to satisfactorily run the economy:
What goods and services to produce?
How to produce them?
For whom to produce them?Module In Brief: introduces the basic economic theories and principles that drive a company’s day-to-day business decisions. You will also be familiarized with the basic economic problem of a business. This module also describes the concepts of demand, supply, and elasticity and how their relationship helps predict market outcomes. You will learn how demand and supply determine the prices of all the goods and services in a market-driven economy. Module Overview:Consider the last major sporting event that you watched on television. What did you give up to watch this show—the option of dining out with your friends or spending time with your family? Let us extend this example to other stakeholders. Think of how competing teams would have traveled to the event. Probably, they chartered a flight. What was their gain? How did the airline decide whether or not to accept the charter?We all make economic decisions every day of our lives. Economics is the science of making effective choices or decisions by examining the available alternativesThis module introduces the basic concepts of economics that will help you analyze and evaluate various alternatives and make effective day-to-day business decisions. To begin with, you will learn about the basic economic problem that a society faces. You will then apply this knowledge to analyze the problem and make decisions in the context of your business.Basic Economic ProblemThe basic economic problem in any society is how to allocate resources among individuals to meet their demands for what they want to consume. While the individuals’ needs are unlimited, the resources available to a society are limited. To address this problem, societies take into account the production, the sale, and the consumption of goods and services, and compare alternative ways of using the limited resources. Each society, therefore, must find answers to these three basic questions to satisfactorily run the economy:
What goods and services to produce?
How to produce them?
For whom to produce them?