Demand Forecasting – Understanding Predictions

Demand Forecasting – Understanding Predictions

DEMAND FORECASTING Forecasting of demand is an art and science of predicting the probable demand for a product or service at some future date on the basis of certain past behaviour patterns of some related events and prevailing trends in the present. BASICS Forecast means to predict.  So what is…

MIXED ECONOMY

MIXED ECONOMY

Table of Contents:MIXED ECONOMYFEATURES OF MIXED ECONOMYCO-EXISTENCE OF PRIVATE AND PUBLIC SECTORPRIVATE SECTORPUBLIC SECTORCOMBINED SECTORMIXED ECONOMY HAS THE FOLLOWING MERITS AVAILABLE TO CAPITALIST AND SOCIALIST ECONOMYFACTSCONCLUSIVE STATEMENT The mixed economic system depends on both markets and governments in allocation of resources. Every economy in the real world makes use of…

SOCIALIST ECONOMY

SOCIALIST ECONOMY

Table of Contents:SOCIALIST ECONOMYCHARACTERISTICS OF SOCIALIST ECONOMYCOLLECTIVE OWNERSHIPECONOMIC PLANNINGABSENCE OF CONSUMER CHOICERELATIVELY EQUAL INCOME DISTRIBUTIONMINIMUM ROLE OF PRICE MECHANISM OR MARKET FORCES ABSENCE OF COMPETITIONMERITS OF SOCIALIST ECONOMYDEMERITS OF SOCIALIST ECONOMYCONCLUSIVE STATEMENT Characteristics of Socialist Economy: Collective OwnershipEconomic PlanningAbsence of Consumer choiceRelatively Equal Income DistributionMinimum Role of Price Mechanism or Market…

CAPITALIST ECONOMY

CAPITALIST ECONOMY

Table of Contents:CAPITALIST ECONOMYCHARACTERISTICS OF CAPITAL ECONOMYRIGHT TO PRIVATE PROPERTYFREEDOM OF ENTERPRISEFREEDOM OF ECONOMIC CHOICEPROFIT MOTIVECONSUMER SOVEREIGNTYCOMPETITIONABSENCE OF GOVERNMENT INTERFERENCEHOW DO CAPITALIST ECONOMIES SOLVE THEIR ECONOMIC PROBLEMS?DECIDING WHAT TO PRODUCE?DECIDING HOW TO PRODUCE?DECIDING FOR WHOM TO PRODUCE?DECIDING ABOUT SAVINGS, CONSUMPTION AND INVESTMENTSINTERPRETATIONMERITS OF CAPITALIST ECONOMYDEMERITS OF CAPITALIST ECONOMYCONCLUSIVE STATEMENT An…

BASIC PROBLEMS OF AN ECONOMY

BASIC PROBLEMS OF AN ECONOMY

BASIC PROBLEMS OF AN ECONOMYWhat To Produce?How To Produce? For Whom To Produce?What Provisions (if any) are to be made for Economic Growth?ECONOMIC SYSTEM   CLASSIFICATION OF ECONOMIESCAPITALIST ECONOMY, SOCIALIST ECONOMY & MIXED ECONOMY    BASIC PROBLEMS OF AN ECONOMY Just like resources are scarce for humans, all countries face the problem of scarcity…

Exceptions to the law of Demand

Exceptions to the law of Demand

Table Of Contents:Exceptions to the law of demandConspicuous goodsGiffen goodsConspicuous  necessitiesFuture expectations about pricesIncomplete information and irrational behaviourDemand for necessariesSpeculative goods   Expansion and Contraction of demand    Increase and Decrease in demand      Effect of non-price determinants of demand    Movements along the demand curve VS. shift of demand curve Exceptions to the law of demand: we…

Learn and understand how to easily perform a break even analysis

Learn and understand how to easily perform a break even analysis

The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal. There is no net loss or gain, and one has “broken even,” though opportunity costs have been paid and capital has received the risk-adjusted, expected return. In short, all costs that must be paid are paid,…