Basic Economics

Economics is concerned with the most efficient allocation of scarce resources to various uses and with the creation and distribution of wealth. The complete economic picture can best be understood by first discussing how the individual consumer or household chooses to allocate a limited budget and how these individual choices subsequently lead to demand for a product. Section 2.1 reviews of some important aspects of consumer economics. 

When a product is in demand, numerous firms attempt to produce it at a profit. What processing unit should be built to produce the product and how the unit should be operated to make a profit are important aspects of a subject known as the economics of the firm. Section 2.2 discusses portions of this important subject relevant to the CPI. 

The design of a chemical processing unit to meet a specific consumer demand and the comparison of alternative process costs (by retum-on-investment and discounted-cash-flow analysis) are well covered in texts on process economics and are not treated in this book. 

The financial well-being of the firm depends on the economic performance of the countries in which it operates. Section 2.3 discusses selected parts of national and international economics. 

---

From the cash flow and cumulative cashflow some basic economic indicators can be determined. The cashflow determines the economic lifetime of the field. When the cashflow turns permanently negative due to decreasing revenues (e.g. revenues are... 

Subsidy is a transfer of money from government to an individual or a firm to stimulate undertaking a particular activity. Subsidies and subsidy-hke programs arc major parts of energy policies. However, such energy grants are only one example of government aid and not the most important examples. The basic economic principle that people respond favorably to financial incentives implies that such transfers stimulate the action that is aided. 

In the early 1990s Drucker forecast the value of knowledge to business The basic economic resource— the means of production, to use the economist s term—is no longer capital, nor natural resources (the economist s land ), nor labor. It is and will be knowledge. Value is now created by productivity and innovation, both applications of knowledge to work [15],... 

Economists consider environmental policies within the framework of the category of externalities, as evidenced by Cropper and Oates [6] "The source of basic economic principles of environmental policy is to be found in the theory of externality."... 

Basically, economic valuation is performed by two different main methods. You either observe indirect statements of economic value = Reveal preferences. Or you ask individuals for their economic value = State preferences. One important aspect to have in mind is that valuation is performed to identify demand for resources and services for which there is no functioning market [18]. 

Weitzman M (2009) Some basic economics of extreme climate change In Touffot J-P (ed) Changing Climate, Changing Economy (c) Cournot Centre for Economic Studies 2009... 

It can play one of two roles. First, as an end in itself or as an alternative or adjunct to profitability and shareholder equity, or, second, as an intermediate objective leading to one of these more fundamental outcomes. If we examine the first of these alternatives we see a range of theories that have subordinated profitability to other variables as primary outcomes. For example, research in the economic theory of commercial banking modifies the basic economic goal of profitability to include a superordinate need for liquidity (Cooper, 1949), and Margolis (1958) argues that the context of uncertainty in which business activities are conducted will lead so-called deliberative firms to utilize criteria that they believe will lead to profitability in this... 

In Table 9.2, the basic economic assumptions and parameters are reported. 

Sowell, T. (2004). Basic economics A citizen s guide to the economy (rev. ed.). New York Basic Books. 

Based on the results from laboratory-scale equipment and the first production plants, the basic economics of the process were calculated. The processing costs are between 0.15 and 0.60 Euro/kg (composition of costs investment 20%, personell 37%, and operating 43%) and vary depending on the substances to be micronized, the scale of the equipment, etc. 

Basic economics The law of supply and demand is fundamental to an understanding of... 

The basic economics are quite sensitive to the relative value of propylene to ethylene. This is illustrated in Figure 9.6, which shows how the production cost of ethylene changes with the relative value propylene and ethylene. 

A reverse income statement models the basic economics of the proposed innovation based on projected profit, not revenue. 

Control of Industrial Water Quality Control of Solid Waste Purchase. Handling, and Storage of Hazardous Materials Personal Protective Equipment Costs of Industrial Hygiene Control Basic Economic Analysis... 

Any paper on the literature of raw materials for production of chemicals from petroleum and natural gas must therefore be concerned with the composition of these substances and their basic refined derivatives, with processes for the separation of pure chemical raw materials from these products, and with the basic economics involved. 

There are a number of good introductory texts in basic economics. The following authors have been found to be particularly helpful ... 

As a student, the future chemical professional takes courses in basic economics and social science as well as perhaps business courses that develop skills and give insight into economic and sociopolitical factors. To be used effectively, this nontechnical knowledge should be related to the technical and scientific knowledge while the student is in school. 

Basic economic, financial, and accounting principles are covered in Chapters 2-4. 

---