Economics Notes for 2nd Semester

Introduction to Business Economics:
- Business economics is the study of how businesses make decisions regarding the allocation of resources.
- It combines economic theory with business practices to help businesses make informed decisions.
- Topics covered include demand and supply, pricing strategies, production costs, and market structures.

Microeconomics:
- Microeconomics focuses on individual economic agents such as consumers, firms, and markets.
- It examines how individuals make decisions based on constraints and incentives.
- Key topics include demand and supply, consumer behavior, production costs, and market structures.

Macroeconomics:
- Macroeconomics studies the economy as a whole, looking at factors such as inflation, unemployment, and economic growth.
- It examines government policies such as fiscal and monetary policy to stabilize the economy.
- Key topics include GDP, inflation, unemployment, and international trade.

Market Structures:
- Market structures refer to the characteristics of a market that influence the behavior of firms and consumers.
- Examples of market structures include perfect competition, monopoly, oligopoly, and monopolistic competition.
- Each market structure has unique features that affect pricing, output levels, and market power.

Business Cycles:
- Business cycles refer to the fluctuations in economic activity over time.
- They consist of four phases: expansion, peak, contraction, and trough.
- Understanding business cycles is crucial for businesses to make strategic decisions in a dynamic economic environment.