Answer to Question #146509 in Macroeconomics for pashmina Kumari

Question

Explain, using examples, the difference between the following:

a. Market Process and Traditional Process
b. The three basic economic questions from the stand point of a Country and of a Company
c. Economic goals and Non-economic goals
d. Explicit Costs and Implicit Costs
e. Determinants of Demand and Determinants of Supply

Answer 1

a)Market process entails strategic marketing analysis,marketing-mix planning while Traditional Process entails requirements, gathering,documentation and system design.

b)In order to meet the needs of its people, a firm must ask itself the following questions;

What goods and services should be produced?

How should these goods and services be produced?

Who consumes these goods and services?

c)Economic goals include efficiency, equity, economic freedom, full employment, economic growth, security, and stability while Non economic goals include customer loyalty, employee welfare, labor productivity and production volume also matter.

d)Explicit costs include payments for wages and salaries, rent while implicit costs include expanding a factory onto land already owned.

e)Determinants of demand include the price of the goods, income of the buyers while Determinants of supply include number of sellers in the market, government regulations.