Other Major Concepts Under Economic Terminologies

Here are a few brief descriptions of the basic concepts in economics. We should realize their meanings before starting with the introduction of miscellaneous topics.

• Capital resources – These summarize the inventory items which are essential for the manufacturing of products in a business procedure. Examples of capital resources are large-scale machinery in factories or juicers in a general fruit juice shop.
• Commodity material –In general, this term is used to mention the raw inputs to a business. A business can either secure them from other businesses or gather them from nature. Commodities are purchased in bulk to lower costs and to execute uninterrupted production. An example of a commodity for a premium clothing brand is good quality textile. 
• Consumer –In the world of economics, a consumer is someone who is entitled to the ownership of a product or service after an amount is paid for the same. The consumer can be an individual or an institution as well. 
• Demand –In literal terms, demand signifies the desire of consumers to own a specific product or service at a fixed range of price. As the number of potential consumers goes on increasing, the demand also rises accordingly. Another related concept is the shift in demand. This happens when the selling price of any item is increased because of reasons other than the manufacturing cost. 
• Supply –This basic concept denotes the metric expression of product or service availability. When the availability increases, the price drops as the consumers get ample options. Scarcity emerges when supply decreases. 
• Elasticity –Elastic nature of an economy is understood by observing the market over time. It is an economic indicator that explains – at times of higher supply prices ought to be low and vice versa for periods of higher demand. 
• Equity –A business denotation that indicates the percentage of ownership in an enterprise. An owner can hold a particular amount of equity after selling shares to investors. Shares are sold to earn working capital and business expertise in return. 
• Liquidity –Any form of an asset can get modified into cash. A cheque is more liquid than a one-year fixed deposit plan. 

Miscellaneous Topics in Economics 

Even it is necessary for a layman to learn about the objective of miscellaneous topics to control his finances. In this following discussion, we will go through the concept of miscellaneous topics in an economy. 

• Consumer price index – The abbreviation CPI is more popular. It is a macro economical term. It is the comparative or weighted average of consumers to commodity bundles over time. It is measured by finding the ratio of updated price to the previous price of an item or service. To find the percentage we simply multiply the value by 100. If CPI rises there is the possibility of inflation. 
• Economic growth –This metric expression is determined by comparing the production volume of one period with another. An aggravated economic growth is reflected in a nation’s GDP. 
• GDP – We are well acquainted with its full form. It is a gross domestic product. GDP signifies the total monetary value of a country’s production across all manufacturing and serving sectors. It is calculated against a stipulated period, usually a year. 
• Unemployment –Another miscellaneous economic indicator that points out the people who do not represent the labor class in an economy. 

Thus, through the introduction of miscellaneous topics, we have already attained basic theories of economics. Now let us read the objective of miscellaneous topics. 

• Stability in the market – Market prices should not be subject to deflation otherwise, there will be fluctuations in costs. Deflation indicates that an economy is crumbling down slowly. 
• Restrict stagnation –employment rates must be optimal to avoid this negative effect. Stagnation in economic growth lowers the demand for services and products. This condition is undesirable in any economy and must be restricted well in advance. 
• Restrict recession –A recession involves two or more calendar quarters of negative economic growth. The miscellaneous factors must check recession otherwise the recovery procedures from the detrimental effects are complicated to execute. 

Conclusion 

We have completed our basic study of economics through the introduction of miscellaneous topics and an elaborate explanation of their features. A society’s population affects the macroeconomic conditions through their behavior. Thus advisory services of economists can help to check the detrimental effects of economic downturns to a remarkable extent.