What is economy factor?

Answer 1

Economics is the social science that analyzes the production, distribution, and consumption of goods and services.

Economics can also be defined as "The study of choice making by individuals, institutions, societies, nations and the world, under conditions of scarcity and surplus, towards maximizing benefits and satisfying the unlimited present and future needs." The subject Economics is defined as the "Study of choices by all in maximizing production and consumption benefits with the given resources of scarce and surplus, for present and future needs."

economic factors

Demand and Supply

The demand and supply are two principal factors that affect the working of any business model. The demand is the will and ability of consumers to purchase a particular commodity and the supply is the ability of the business to provide for the demand of consumers. It must be noted that all the factors that are included in this list are inter-connected. You may also read demand and supply analysis.

Marginal and Total Utility

Utility is the amount of satisfaction, that is derived by consumers from consumption of goods. It so happens that after continuous and successive consumption of units of the same goods, the satisfaction that is experienced by consumer starts decreasing. This often results into short term or long term fall of sales. Some organizations prepare for the launch of another brand before the fall in utility and sales is experienced. The launch of new brand, ensures that the revenue trend of the business does not fall. Diminishing utility is among the external factors affecting business. You may also read more on diminishing marginal utility.

Money and Banking

Banking facilitates monetary and fiscal policies that affect business and also the customers of the business. Money in circulation dictates the paying power or rather the demand of the consumers and the banking facility dictates the borrowing capacity of individuals as well as the business.

Economic Growth and Development

Economic growth dictates the amount of finances that the society at large is earning and development indicates the volume of money that is being invested into channels of long term up-gradation. Among all the economic factors affecting business environment, development is the most important one, as the business has to cater to the demand of an economically dynamic society.

Income and Employment

Another very important aspect of the economy that affects the working of the business, is the level of employment and rate of income. The per capita income and density of employment dictates the rate of demand, density of demand and also the purchasing power of the people.

General Price Level

Another very important aspect of the economy, that affects the business is the general price levels of the commodities that also affect the sales of the business. Costs of raw materials, paying power of people, cost of production and finally, cost of transport are some of the important components that determine the general price level and also, the sales of the firm.

Trade Cycles

Trade cycles are the fluctuating costs of goods and commodities in an economy. Rise, stability, continuity and fall are some of the important cycles that affect the prices off all goods such as raw material, credit, final goods, etc. Trade cycles also many a times affect the general price level.

Answer 2

bad, crime, greed, and want are what they seem to be these days.

Answer 3

the factors of economics are land, labor, capital and entepreneur. :p

Answer 4

the economy factor is the factor that economies our world and the factor is the social of our factor

Answer 5

Has to do with the economy