what is diffreence between Micro and Macro economics?
Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize it's production and capacity so it could lower prices and better compete in its industry
Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by unemployment rate.
While these two studies of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end product's price charged to the public.

The bottom line is that microeconomics takes a bottoms-up approach to analyzing the economy while macroeconomics takes a top-down approach. Regardless, both micro- and macroeconomics provide fundamental tools for any finance professional and should be studied together in order to fully understand how companies operate and earn revenues and thus, how an entire economy is managed and sustained.
source: http://www.investopedia.com/ask/answers/110.asp

other links
http://inflationdata.com/articles/20...acroeconomics/
http://www.engineersblogsite.com/dif...economics.html
https://www.mint.com/the-difference-...icroeconomics/
http://www.preservearticles.com/2011...economics.html
http://economics.about.com/od/econom...oeconomics.htm

what are the fundamental problems faced by an economy?

there are three problems

1. what to produce?
2. how to prouce?
3. for whom to produce?

1) What to produce:

This problem is what should the economy produce in order to satisfy consumer wants (as seen by demand curves) as best as possible using the limited resources available. If a country produces goods in a way that maximises consumer satisfaction then the economy is allocatively efficient.

2) How to produce:

This problem is how to combine production inputs to produce the goods decided in problem 1 as most efficiently as possible. An economy achieves productive efficiency if it produces goods using the least resources possible. A productively effiecient economy is represented by an economy that is able to produce a combination of goods on the actual curve of the PPF.

3) For whom to produce:

Should the economy produce goods targetted towards those who have high incomes or those who have low incomes. What sort of demographic group should the goods in the economy that are produced be targetted towards? If the economy is addresses this problem then it has reached preto efficiency or pareto optimality.

If all three problems are addressed at any one time then the economy has achieved static efficiency. If the economy achieves static efficiency over a period of time then it is dynamically efficient.

All these problems are focused around the problem of unlimited wants and limited resources. Where resources are the fators of production (such as labor, capital, technology, land..) which are used to produce the products that satisy the wants.

source:
http://answers.yahoo.com/question/in...1122947AABLMhR


what is the basic /central/fundamental single problem? (in other words)
http://en.wikipedia.org/wiki/Economic_problem

what is utility in economics?
"capability of wants satisfaction possessed by the goods"
or
The capacity of a good or service to meet the demand of a consumer. The amount of economic utility of a good or service determines what the demand will be for that good or service, which impacts the price that people will be willing to pay to obtain it.
source: http://www.investorwords.com/16394/e...c_utility.html

Read more:

A consumer's utility is hard to measure. However, we can determine it indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility. Utility is a concept that was introduced by Daniel Bernoulli. He believed that for the usual person, utility increased with wealth but at a decreasing rate.

source: http://www.investopedia.com/terms/u/utility.asp

In economics, utility is a representation of preferences over some set of goods and services. Preferences have a (continuous) utility representation so long as they are transitive, complete, and continuous.
Utility is usually applied by economists in such constructs as the indifference curve, which plot the combination of commodities that an individual or a society would accept to maintain a given level of satisfaction. Individual utility and social utility can be construed as the value of a utility function and a social welfare function respectively. When coupled with production or commodity constraints, under some assumptions, these functions can be used to analyze Pareto efficiency, such as illustrated by Edgeworth boxes in contract curves. Such efficiency is a central concept in welfare economics.
In finance, utility is applied to generate an individual's price for an asset called the indifference price. Utility functions are also related to risk measures, with the most common example being the entropic risk measure.
source: http://en.wikipedia.org/wiki/Utility


What is Utility?

The goods satisfy human wants. This want satisfying quality in a good is called Utility. Utility is that quality in a commodity by virtue of which it is capable of satisfying a human want. Air, water (free goods) and food, cloth etc. (economic goods) satisfies people’s wants and hence they possess utility.

In day to day life we use this term in different way but in Economics utility is having a specific meaning. Hence
a) Utility and usefulness are different. For example a poison when we consume it is definitely injurious and hence it never is useful but it satisfies the human want, i.e. the want of person who decides to suicide and hence it possesses utility.

b) Utility is not synonymous with pleasure. A good which possess utility may not give pleasure when. Consumed e.g. a medicine when a patient consumes does not give pleasure since mostly it is bitter. But it possesses utility because it is required to cure from sickness. Thus pleasure is different and utility is different.

c) Utility is subjective means no commodity possesses utility in itself independently of the consumer. It is a consumer’s mind which gives it utility. A literate person may find utility in books, new paper etc. as he is able to read those, but on the contrary an illiterate person never find any utility. Thus utility depends on mans mind rather than on the things itself.

d) Utility varies in different situations. Moreover the same things may possess different utilities for different purposes. For example water has different utilities when it is used for drinking, bathing and washing purposes.

Types of Utility:

From Utility: Due to change in form there is change in utility, e.g. Wood when transformed into furniture, utility will increase.

Place utility: When goods transported from one place to another place utility can increase. For example apple will fetch more prices in other part of country than in Kashmir and Himachal Pradesh.

Time utility: By storing a commodity and selling it at a time of scarcity, utility can be realized more.
source: http://agriinfo.in/?page=topic&superid=9&topicid=181

this is very important topic , there are many laws /theories associated with this topic. this is why i have provided many links to study better.

there are four types

Frictional: when somebody is temporarily not working, eg. recent graduate

seasonal: as in tourism industry

structural: when people are not working because there is no demand for their particular skill set eg, if somebody is PhD in medieval economics, it is very difficult for him to be hired.

cyclical : due to economic slow down. refer 4 stages/cycles of business
(my next topic is Business/economic cycle)


Frictional Unemployment
Finding a job takes time, and sometimes the reason a person is unemployed is because they are waiting to find a job that works for them or taking time to decide between multiple job offers. In addition, it takes time for employers to interview potential candidates and decide which individual they want to hire. Frictional unemployment is defined as voluntary unemployment because it results from the time needed to match job seekers to job openings, according to Econguru.com. One example of frictional unemployment is voluntarily quitting one job and taking time off to find another one.

Structural Unemployment
Structural unemployment is caused by a mismatch between the needs of employers and the skills that a workforce in a country has, according to Drexel University. For example, law schools in the United States train more lawyers than the country needs, which can make it difficult for a lawyer to get a job as a lawyer. As a result, a lawyer may be able to get a job working at a retail store, but he declines the job because it was not the field of work he was trained for. Structural unemployment can also be caused by geographical problems. For example, individuals who are willing to do construction work might live in a rural area, but the construction jobs are only available in urban areas.

Seasonal Unemployment
Seasonal unemployment is when a person is unemployed because certain types of jobs are only available at certain times of the year. For example, an individual who plows driveways might only have work in the winter, and a lifeguard might only have work in the summer when it's warm outside. Another example is that the demand for postal workers usually rises around the holidays. Seasonal unemployment is simply caused by decreased demand for goods or services during particular times of the year. Seasonal unemployment is the most predictable type of unemployment because it happens each year.

Cyclical Unemployment
Cyclical unemployment is the type of unemployment that's caused by economic recessions and is the type of unemployment talked about frequently in the news. Cyclical unemployment is caused by negative economic growth. In other words, cyclical unemployment is when there is not enough demand to supply jobs for people within a country. This type of unemployment can result in widespread unemployment within a country.
source: http://www.ehow.com/info_8182767_4-t...mployment.html

list of remaining important topics

1. economic law
2. demand and supply functions (with graphs)
3. market structure (very NB topic, includes monopoly, price discrimination, price takers etc )
4. porter's diamond model of national advantage (about new factor endowment)
5. theory of comparative cost
6. market equilibrium (we have covered ceiling and floor)
7. 3 laws of marginal utility (famous one is diminishing Law of MU)
8. indifference curve and budget line
9. business /economic cycle (four phases/stages, ie boom, recession wagera )
10. PPF (production possibility frontier)
11. multipliers (spending , tax and money multipliers)
12. externality
13. subsidy
14. difference between consumer surplus and producer surplus (with graph)
15. production function
16. isoquant/isocost/isoprofit curves (mujh se interview m ye poosha tha)
17. 3 laws of returns (constant/increasing/decreasing)
18. quantity theory of money (important from interview point of view)
19. types of tax (progressive/regressive/proportional) (we have done direct and indirect)
20. incidence of tax
21. unerdeveloped countries (important from theory/interview point of view )
22. canons of taxation (Adam Smith)
23. what is gold standard and how currency notes are issued by SBP?
24. types of demand for money (transaction, speculation wagera)
25. mechanism of money supply in pakistan and role of banks/SBP
26. dead weight loss
27. close vs open economy
28. crowding out effect
29. poverty (theory)
30. comparative vs competetive advantage (at international level , ie between countries)
31. economies of scale /scope (in production)
32. marginal rate of substitution
33. elasticity (demand , supply, income, cross, point etc)
34. difference between accounting profit and economic profit
35. value added tax (VAT is important topic)
36. relation between demand , elasticity and total revenue (a simple graph)
37. game theory (oligopoly)
38. consumer equilibrium (utility concept)
39. forfeiture and escheat
40. faults in tax collection system of pakistan (theory)
41. bretton wood system (IMF)
42. principle of maximum social advantage
43. deficit financing (budgeting)
44. budget gap (inflationary vs deflationary)
45. stagflation
46. purchasing power parity
47. coase theorem
48. paradox theorem
49. big topics of econometrics eg regression, statistical inference,confidence interval, type I and II errors, p/f/t/z/r values, least square method

these are important topics.

if you cover them , Inshallah, you will attempt economics MCQs more than 80% easily.

good luck. i shall remain in touch.

@jaris

I am preparing for lecturer test for Economics. I need your notes in pdf. If it you have them plz share here... Thanks..

salamz, can you tell me questions which were came in test if u have remembered, as u shared about questions asked in ur interview??

I heard lecturer jobs are going to be announced in september .i want to know whether lecture ecomics seats will be announced or not .