MB ECONOMICS

Basic concept of economics: 1. Wants: wants is desire to own goods and services that give satisfaction. Wants are unlimited while the means are limited. 2. Choice: Choice refers to the ability of a consumer or producer to decide which good, service or resource to purchase or provide from a range of possible alternatives. 3. Scarcity: Scarcity is the limited availability of a commodity , which may be in demand in the market or by the commons. Scarcity may also means an individual's lack of resources to buy commodities. 4. Scale of Preference: Scale of preference refers to a list of unsatisfied wants arranged in order of their relative importance. 5. Opportunity Cost: Opportunity cost is the value of the next best alternative forgone as a result of making a decision.

What is Inflation? According to Saleem, et al.(2013) Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Types of Inflation 1. Creeping Inflation 2. Walking Inflation 3. Running Inflation 4. Hyperinflation Creeping Inflation is when the rise in price is very slow likevthat of a snail or creeper. A sustained rise in prices of annual increase of less than 3 percent per annum is characterized as creeping Inflation. Such an increase in prices is regarded safe and essential for economic growth. Walking Inflation occurs wjeb prices rise moderately and annual inflation rate is a single digit. This occurs the rate of rise in prices is in the intermediate range of 3 to less than 10 percent. Running Inflation is when prices rise rapidly at the rate of 10 to 20 percent per annum. Hyperinflation occurs when prices rise very fast at fouble or tripple digit rates. This could get to a situation where the inflation rate can no longer be measura...

What is Unemployment? Everyman's dictionary of economics define unemployment as "involuntary idleness of a person willing to work at the prevailing rate of pay but unable to find it" Causes/Types of Unemployment 1. Frictional 2. Seasonal 3. Cyclical 4. Structural 5. Technological 6. Disguised *Frictional Unemployment  occurs when workers leave their old jobs but haven't yet found new ones or students looking for that first job . *Seasonal Unemployment results from regular changes in the season. Workers affected by seasonal unemployment include ice cream sellers...etc *Cyclical unemployment is when the demand for goods and services in an economy decreases, forcing companies to lay off workers in an effort to cut costs.   *Structural unemployment is a type of long-term unemployment that can last for many years. Structural unemployment can have multiple causes, such as workers not having the skills or training needed to qualify for the current job openings. *Technologica...