The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price.

Economic equilibrium is a condition or state in which economic forces are balanced. Economic equilibrium is the combination of economic variables (usually price and quantity) toward which normal economic processes, such as supply and demand, drive the economy.

the management of limited resources to satisfy unlimited wants. Explanation: So, as you can see, the fundamental conflict of economics is that there are not enough resources to satisfy all our unlimited wants.

microeconomics is concerned with individual markets and the behavior of people and firms, while macroeconomics is concerned with aggregate markets and the entire economy. the choices we must make among alternatives because of scarcity.

Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. Here’s an example of a positive economic statement: “Government-provided healthcare increases public expenditures.” This statement is fact-based and has no value judgment attached to it.

Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach.

Microeconomics uses a set of fundamental principles to make predictions about how individuals behave in certain situations involving economic or financial transactions. These principles include the law of supply and demand, opportunity costs, and utility maximization. Microeconomics also applies to businesses.

What is the example of Microeconomics and Macroeconomics? Unemployment, interest rates, inflation, GDP, all fall into Macroeconomics. Consumer equilibrium, individual income and savings are examples of microeconomics.

Here are some examples of microeconomics: How a local business decides to allocate their funds. How a city decides to spend a government surplus. The housing market of a particular city/neighborhood.

Hiring Employees. Within your small business operations, how much time you spend looking for a new employee is an example of a microeconomic decision. Suppose you post an ad for a vacancy that needs to be filled quickly.

Micro economic problems

• The problem of externalities. The economic problem of pollution.
• Environmental issues.
• Monopoly.
• Inequality/poverty.
• Volatile prices.
• Irrational behaviour.
• Recession.
• Inflation.

Microeconomics breaks down into the following tenets: Individuals make decisions based on the concept of utility. In other words, the decision made by the individual is supposed to increase that individual’s happiness or satisfaction. Businesses make decisions based on the competition they face in the market.

The microeconomy is an important area of study, and the approach to learning taken here is through the role of ​the major decision makers: banks, households, workers, trade unions and firms.

Most economic decisions are made by buyers and sellers, not the government. A competitive market economy promotes the efficient use of its resources. It is a self-regulating and self-adjusting economy.

The major decision makers in our country consists of the President, the Prime Minister and the Parliament.

The major decision makers of our country include:

• The President: the head of the state and the highest formal authority in the country.
• The Prime Minister: the head of the government who actually exercises all governmental powers.
• The Parliament : that consists of two Houses, Lok Sabha and Rajya Sabha.

The decisions makers are the legistature. The judiciary also has the power of striking down law by judiciary review.

5 Steps to Good Decision Making

1. Step 1: Identify Your Goal. One of the most effective decision making strategies is to keep an eye on your goal.
2. Step 2: Gather Information for Weighing Your Options.
3. Step 3: Consider the Consequences.
4. Step 4: Make Your Decision.
5. Step 5: Evaluate Your Decision.

How to evaluate candidates’ decision-making skills

1. Challenge candidates with hypothetical scenarios in which they have to reach an important decision.
2. Asking follow-up questions is a sign that your candidates want to have as much information as possible before jumping to a conclusion.

A good decision-maker chooses actions that give the best outcome for themselves and others. They enter into the decision-making process with an open mind and do not let their own biases sway them. Good decision-makers involve others when appropriate and use knowledge, data and opinions to shape their final decisions.

Effective decision making is defined here as the process through which alternatives are selected and then managed through implementation to achieve business objectives. ‘Effective decisions result from a systematic process, with clearly defined elements, that is handled in a distinct sequence of steps’ [Drucker, 1967].

7 decision-making process steps

1. Identify the decision. To make a decision, you must first identify the problem you need to solve or the question you need to answer.
2. Gather relevant information.
3. Identify the alternatives.
4. Weigh the evidence.
5. Choose among alternatives.
6. Take action.
7. Review your decision.

All slides

• 10 Difficult Decisions You’ll Make in Life (and How to Make Them)
• Choosing a college major.
• Deciding on a career.
• Making a career change.
• Going back to school or get an advanced degree.
• Figuring out where to live.
• Renting or buying a house.
• Deciding who to date.