ECONOMIIC

ENVIRONMENT OF
BUSINESS
AFTERSCHOOOL – DEVELOPING CHANGE
MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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 ECONOMIIC ENVIRONMENT
OF BUSINESS
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Bikaner
M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk
www.afterschoool.tk

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What is consumer surplus?
 Difference of total utility from the goods
and total utility from the money spent.
 It is the difference in the utility from
goods and the utility of price paid.
 It is upto the point where Marginal utility
is equal to price paid.

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Who gave the concept of
consumer’s surplus?
 Alfred Marshall

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Price is 10 units (utility), and marginal utility from 1
unit is 30, from 2nd it is 20 and from 3rd it is 10, from
4th it is 5 units. What is my consumer surplus?

I shall use 3 units (where marginal utility

is equal to price paid).
 Thus my total utility is 30+20+10 =60.
but utility of price paid is 10*3 = 30. Thus
my consumer surplus is 60-30 =30
answer.
 I shall not by 4th unit because price paid
is more than utility.
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What is indifference curve?
 Itrepresents all those combinations of
goods which give same satisfaction to
the consumer.
 For example: I derive equal satisfaction
from 3 units of rice plus 10 units of bread
and the same satisfaction is available
from 10 units of rice+3 units of bread
thus both these combinations are on
indifference curve.

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If we are at less than Production
Possibility curve(PPF), what does it
denote?
 We are not at full employment level, we
are not yet able to achieve full
productivity.

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If opportunity costs are constant
(which is not possible), what will be
the shape of PPF (production
possibility curve)?
 It will be a straight line – not a curve.

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Can we product some item beyond
PPF (higher then the PPF)?
 NO. (with the given resources and given
productivity level, it would not be
possible).

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According to economists, what
should be our approach in decision
making?
 RATIONAL (analyse goals and take a
decision consistent with goals – with the
objective of optimisation)
 (but according to some management
thinkers, we cannot be completely
rational and we try to satisfice rather
than optimise.)

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What is fundamental assumption
in economics?
 People want to optimise – i.e. they want
to select the alternatives which will give
them the best returns in comparison to
inputs

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Who said that “economics is
neutral between ends”?
 ROBBINS

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In a free market economy, what will
happen if demand exceeds supply?
 Prices will increase.

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What is the point of consumer’s
equilibrium?
 It is the point where the consumer has
maximum possible satisfaction from
given combination of goods.
 It is at a point where marginal rate of
substition between goods X & Y is equal
to the ratio between the prices of these
goods.
 MUx/MUy = Px / Py

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What is budget line, how does it
help?
 If we allocate the total budget on two
products for various units, we get budget
line. The point where budget line touches
the highest indifference curve, is the
point where consumer decides to go for
– because that is the point of consumer’s
equilibrium.

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If my income doubles, but prices are
stable, what will happen to budget
line?
 It will shift upwards.

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If my income remains stable, but
prices are doubled, what will happen
to budget line?
 It will shift downwards.

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Suppose you have Rs. 1000 with you
as your budget. X costs Rs. 200 per
item and Y costs Rs. 250 per item.
What is the maximum possible point
on X’s axis in the budget line?

 1000/200 = 5 answer.

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What is price elasticity of
demand?
 Change in demand due to change in
prices.

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What is income elasticity of
demand?
 Change in demand due to change in
income. If income will increase, generally
the demand will increase and vice versa.

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For luxury goods, the income
elasticity is usually in what range?
 More than 1.

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For inferior goods, the income
elasticity is usually in what range?
 Less than 1.

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If price increase from 120 to 200 and
demand decreases from 300 to 200
units, what is the price elasticity?
 (Q1-Q2)/(Q1+Q2) * (P1+p2)/ (P1-P2)
 (300-200)/(300+200) * (120+200)/(120-
200)
 =100/500 * 320/(-)80

 =.2*-4

 = -.8 answer.

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Price is reduced from 300 to 200 but
demand increases from 300 to 500
what is price elasticity?
 (Q1-Q2)/(Q1+Q2) * (P1+p2)/ (P1-P2)
 =(-200/800) *(500/100)

 =-.25*5

 =-1.25 (answer)

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Can price elasticity be positive?
 Generally No (but exceptions are
possible – for example in giffin goods)

 Giffingoods = inferior goods for example

Bajra, Jwar, inferior rice, etc.

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What is short run in economics?
 The period in which you can modify only
one factor of production is called short
run.
 The period in which you can modify both
the factors of production (labour and
capital) is called long run.

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What is planning curve?
 Long run average cost curve is called
planning curve (because you may plan
out your production).

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Which curve can never be U
shaped curve?
 Average fixed cost curve – as it is always
reducing.

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Which costs have direct relation
with production – i.e. they increase
with production and reduce with
production (if production reduces)?
 Variable costs.

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When is a firm on break even
point?
 When AC = AR or TC=TR
 (there is no profit no loss).

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WHEN IS THE FIRM IN
EQUILIBRIUM?
 When MR = MC (it may be in profit or
loss – but the point of equilibrium is
always at this point, and MC curve
should come from below the MR curve
and cut it and then go up).

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India has what share of world
poverty?
 1/3

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What was per capita income of
Indians in 2007?
 Approximately $700 per annum

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What is HDI?
 Human Development Index
 It is prepared by United Nations
Development Programme. (UNDP)

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WHICH IS THE APEX BANK FOR
AGRICULTURAL CREDIT?
 NABARD

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WHAT IS DIRECT TAX IN % OF GDP
IN INDIA AND WHAT IS TAX
COLLECTION EXPENSES IN INDIA?
 DIRECT TAXES ARE ABOUT 5% OF
GDP IN INDIA AND TAX COLLECTION
EXPENSES ARE ABOUT 3000 CRORE
RUPEES IN INDIA.
 GDP = GROSS DOMESTIC PRODUCT

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WHAT IS MODVAT AND VAT?
 MODVAT = MODIFIED VALUE ADDED
TAX (it is used in excise)
 VAT = Value Added Taxes

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What are RRBs?
 Regional Rural Banks.

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What was sex ratio in India in
2001?
 933 females per 1000 males.

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What was population density in
India in 2001?
 324 persons per square kilometers.

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What was crude birth rate and
death rate in 2001 in India?
 Birthrate was 25.4 per 1000 and death
rate was 8.4 per 1000.

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What was life expectancy in
India in 2001?
 Itwas 62.3 for males, 65.3 for females
and overall 63.8.

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What was literacy rate in India
in 2001?
 It was 65.38% on the whole
 It was 75.85 for males and 54.16 for
females.

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 ABO UT A FTERSCH OOO L
Afterschoool conducts three year integrated PGPSE (after
class 12th along with IAS / CA / CS) and 18 month PGPSE
(Post Graduate Programme in Social Entrepreneurship)
along with preparation for CS / CFP / CFA /CMA / FRM. This
course is also available online also. It also conducts
workshops on social entrepreneurship in schools and
colleges all over India – start social entrepreneurship club in
your institution today with the help from afterschoool and help
us in developing society.

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Why such a programme?
 To promote people to take up entrepreneurship
and help develop the society
 To enable people to take up franchising and
other such options to start a business / social
development project
 To enable people to take up social
development as their mission
 To enable people to promote spirituality and
positive thinking in the world

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Who are our supporters?
 Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
 You can also support us – not
necessarily by money – but by being
promotor of our concept and our ideas.

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About AFTERSCHOOOL PGPSE – the best
programme for developing great entrepreneurs

 Most flexible, adaptive but rigorous programme

 Available in distance learning mode
 Case study focused- latest cases
 Industry oriented practical curriculum
 Designed to make you entrepreneurs – not just
an employee
 Option to take up part time job – so earn while
you learn
 The only absolutely free course on internet
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Workshops from
AFTERSCHOOOL
 IIF, Delhi
 CIPS, Jaipur
 ICSI Hyderabad Branch
 Gyan Vihar, Jaipur
 Apex Institute of Management, Jaipur
 Aravali Institute of Management, Jodhpur
 Xavier Institute of Management,
Bhubaneshwar
 Pacific Institute, Udaipur
 Engineering College, Hyderabad

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Flexible Specialisations:
 Spiritualising business and society
 Rural development and transformation
 HRD and Education, Social Development
 NGO and voluntary work
 Investment analysis,microfinance and inclusion
 Retail sector, BPO, KPO
 Accounting & Information system (with CA / CS /CMA)
 Hospital management and Health care
 Hospitality sector and culture and heritage
 Other sectors of high growth, high technology and social
relevance

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Salient features:
 The only programme of its kind (in the whole world)
 No publicity and low profile course
 For those who want to achieve success in life – not just a
degree
 Indepth knowledge and expertise
 Professional approac: World class approach
 Strong intellectual and business capabilities
 Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
 Scholarships for those from poor economic background
 Latest and constantly changing curriculum – keeping pace
with the time
 Placement for those who are interested
 Admissions open throughout the year
 Latest and most advanced technologies, books and study
www.afterschoool.tk AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS
material
Components
 Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
 Meditation, spiritualisation, and self development
 Essential softwares for business
 Business plan, Research projects
 Participation in conferences / seminars
 Workshops on leadership, team building etc.
 Written submissions of research projects/articles / papers
 Interview of entrepreneurs, writing biographies of entrepreneurs
 Editing of journals / newsletters
 Consultancy / research projects
 Assignments, communication skill workshops
 Participation in conferences and seminars
 Group discussions, mock interviews, self development diaryng
 Mind Power Training & writing workshop (by Dr. T.K.Jain)

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Pedagogy
 Case analysis,
 Articles from Harvard Business Review
 Quiz, seminars, workshops, games,
 Visits to entrepreneurs and industrial visits
 Presentations, Latest audio-visuals
 Group discussions and group projects
 Periodic self assessment
 Mentoring and counselling
 Study exchange programme (with institutions out of India)
 Rural development / Social welfare projects

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Branches
 AFTERSCHOOOL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these
branches – and for promoting social
entrepreneurs.

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Case Studies
 We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
Please help us in this process. Help us
to be in touch with entrepreneurs, so that
we may develop entrepreneurs.

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Basic values at afterschoool
 Share to learn more
 Interact to develop yourself
 Fear is your worst enemy
 Make mistakes to learn
 Study & discuss in a group
 Criticism is the healthy route to mutual support
and help
 Ask fundamental questions : why, when, how
& where?
 Embrace change – and compete with yourself
only
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www.afterschoool.tk
social entrepreneurship for better
society

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