8. RENEWABLE RESOURCES NON-RENEWABLE RESOURCES Pricing is based on Market Forces (Demand & Supply) Pricing is based on User Costs (present value of future prices)
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11. HUMAN CAPITAL SOCIAL CAPITAL Schwartz Model can be used to asses the value of Human Capital in an organization
20. OPPORTUNITY COST The cost of best alternative foregone If you win five million rupees in a lottery today, what will you do with that money? Settle the Debts
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24. SUNK COSTS Costs (or Losses) which have already been incurred in the past, but irrelevant to make decisions today. Suppose that you invested Rs. 1,500,000 in the Stock Market sometime back and now the investment is worth only Rs. 500,000. Financial Analysts predict the Stock Market to grow by 5% in the coming year and the market interest rate to be around 15%. Sell the Shares and go for a Fixed Deposit WHAT SHALL YOU DO?
25. PRODUCTIVITY Doing more with less. 2 + 2 = 3 INEFFICIENT 2 + 2 = 4 EFFICIENT 2 + 2 = 5 PRODUCTIVE Output / Input > 1 Improvement of Efficiency (& may be Effectiveness also).
26. Productivity enhancement of a specific industry Productivity enhancement of the country PRODUCTION POSSIBILITY CURVE Production Possibility Frontier A B a b Opportunity Cost National Productivity enhancement
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28. VALUE & VALUE IN EXCHANGE Value is greater than Value in Exchange Value in Exchange is greater than Value
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32. The Market Pyramid in China, India & Brazil OPPORTUNITIES IN THE 21 ST CENTURY 105 700 800 Less than $5,000 27 125 330 60 $5,000 to $10000 15 63 9 7 2 $10000 to $20000 Greater than $20000 Tier 1 Tier 3 Tier 2 Purchasing power (in U.S, dollars) Population (in millions) China Brazil India Tier 4
33. Pareto Improvement: Transfer of income or wealth from one to another in a manner that it increases the utility or the sense of satisfaction of both the donor and the recipient. Etah - dairy farming