Basic Economics helps entrepreneurs in understanding micro and macro economic variables very well.Presentation is useful for start up/budding enterpreneurs.

1. Dr. Binod Sinha
Professor – PGDM
Balaji Institute of Modern
Management,Pune

2. • Science of Wealth---Adam Smith :1776
• Man and Material well being.---Marshall :1890
• Economics is the science which studies human
behaviour as a relationship between ends and
scarce means which have alternative uses.---
Robbins :1932
• Economics is the study of how men and society
choose, with or without the use of money, to
employ scarce productive resources which could
have alternative uses, to produce various
commodities over time, and distribute them for
consumption, now and in the near future, among
various people and groups in society.– Nobel
Prize winner Paul Samulson :1970

3.  Economics for Engineers -----The application
of economic principles to engineering
problems, for example in comparing the
comparative costs of two Alternative capital
projects or in determining the optimum
engineering course from the cost aspect.
 Economics for managers--------Decision
making
 Economics for entrepreneurs------ earning
profitability

4.  Opportunity Cost
 Discounting
 Incremental
 Marginal

5.  Individual
 Household
 Firm

6.  Aggregate
 Total

7. • Willingness and ability to buy…..Demand
• D=f(x,y,z,a,b,c)
• Demand and Price
• Demand and Income
• Demand and related goods
Assumption and Exception ----------
Share
Gold
Inferior Goods
Ignorance

8.  Estimation
 Expected
 Future
 Demand
--------------------Direct Demand
----------Derived Demand

9.  Expenditure incurred.
 Input transform into output
 Different Cost
 Cost and Production in Long run and short
run
 Production Possibility Curve
 Indifference Curve

10.  GDP
 INFLATION
 FOREIGN EXCHANGE
 Balance of trade
 Balance of Payment
 Unemployment

11.  The gross domestic product (GDP) is one of
the primary indicators used to gauge the
health of a country's economy. It represents
the total dollar value of all goods and
services produced over a specific time period
OR you can think of it as the size of the
economy.
 Gross domestic product (GDP) is the
monetary value of all the finished goods and
services produced within a country's borders
in a specific time period. Though GDP is
usually calculated on an annual basis, it can
be calculated on a quarterly basis as well

12.  In India, GDP is calculated by summing the
Gross Value Added (GVA) per institutional
sector (Agricultural sector, Irrigation,
Livestock products, Manufacturing, etc) .
GVA is the measure of the value of goods and
services produced in an area, industry or
sector of an economy, in economics.

13.  Factors affecting economic growth. ...
Economic growth is an increase in real GDP;
it means an increase in the value of goods
and services produced in an economy. The
rate of economic growth is the annual
percentage increase in real GDP.

14.  Changes in real gross domestic product
measure economic growth. An increase in
GDP over a particular period is an indication
that the country is experiencing economic
growth. On the contrary, a decrease in GDP
over time indicates economic stagnation or
decline.

15.  he following equation is used to calculate
the GDP: GDP = C + I + G + (X - M) or GDP =
private consumption + gross investment +
government investment + government
spending + (exports - imports). Nominal
value changes due to shifts in quantity and
price.

17.  World gdp was US$ 77,779.05 Billion in Jan
2017 as per economic watch.

18.  Entrepreneurs are no doubt catalysts of
change and innovation. Entrepreneurship
stems from the need of fulfilling a gap that
exists in the market and this sets the entire
process of development in motion. The
entrepreneurial growth in our country has
triggered a host of economic benefits,
together with new businesses, new jobs and
new products and services.

19.  Thanks