Question

What specific economic factors need to be considered when conducting economic analysis? Provide justification to your answer and include three specific examples.

Answer 1

Economic analysis is a process of analysing different economic factors by an economist.Economic analysis is mainly done to analyise the smooth functioning of a system.The analysis can be done by considering various economic factors such as availability of natural resources, progress in the technology ,development in human resources, population growth, and social factors etc.The availability of natural resources ( rivers,minerals etc),the investments such as money spends for labours,for new machineries all are analysied properly for the smooth functioning of a system and adopted better methods for increasing productivity,knowledge, skills and capacity of labour,population growth all are analysed clearly to get a clear idea about what all changes should be made for future improvements.

Example 1 : The college students decision upon attending the classes depend up on various factors such as popularity of college, teaching qualities, fees structures,infrastructure of college etc

Example 2 : An employees decision upon working for a company depends upon various factors such as salary,popularity of the company, labour cost etc

Example 3 : A patient selects a hospitals for his treatment depending upon various factors such as popularity and infrastructure of the hospitals, quality of treatments,also depends upon the availability of good doctors.