Questions and Answers
Where did Biresh Sahoo receive his Post-Doctoral Fellowship?
What is Biresh Sahoo's position in OMEGA: The International Journal of Management Science?
Where did Biresh Sahoo teach?
From which country did Biresh Sahoo become the first scholar to receive a coveted fellowship?
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What is the duration of Biresh Sahoo's Post-Doctoral Fellowship by the FRCT, Govt.of Portugal?
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What is Biresh Sahoo's experience after Ph.D.?
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What is the primary concept underlying the interdependence principle?
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According to the cost-benefit principle, what should you do when evaluating a decision?
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In the example of buying a cup of coffee, what is the cost of the coffee?
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How do economists suggest converting intangible benefits to monetary equivalents?
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What determines an individual's willingness to pay for a good?
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What is the primary purpose of the cost-benefit principle?
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What should you do if the benefits of a choice are less than its costs?
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What is an example of an intangible benefit of consuming a cup of coffee?
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What is the opportunity cost of Nerida pursuing an MBA?
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Why is there no opportunity cost associated with the time spent studying and working in the example?
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What is the key concept illustrated by the example of Nerida's MBA decision?
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If Nerida had been offered a part-time job that paid $40,000 per year while she was pursuing her MBA, how would the opportunity cost of the MBA change?
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How does the opportunity cost of a decision change based on the individual's perspective?
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Why is it important to consider opportunity costs when making decisions?
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Which of the following scenarios demonstrates the concept of opportunity cost?
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What is the main takeaway from the example of Nerida's MBA decision?
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What does the opportunity cost principle emphasize?
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Why does opportunity cost arise in economics?
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What does the marginal principle suggest about decision-making?
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Which statement reflects the interdependence principle in decision-making?
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What should be considered when calculating opportunity costs?
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How should one view costs according to economists or management scientists?
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What best describes the relationship between scarcity and opportunity cost?
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What type of decisions does the marginal principle encourage?
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Which type of interdependence involves the relationship between your choices and other people's decisions within the same market?
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You decide to cook dinner at home instead of eating out. Which type of interdependence best describes this choice?
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You decide to buy a new phone because your old one is broken. Which of the following interdependencies is MOST likely involved in this decision?
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You're deciding between buying a car or taking public transportation. Which type of interdependence is MOST likely influencing your decision?
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You decide to save money for retirement instead of spending it on a vacation now. Which type of interdependence is MOST likely affecting this decision?
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You decide to invest in a particular stock. Which type of interdependence is MOST likely impacting your decision?
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You decide to go to a concert tonight, but it means you can't finish your homework. Which type of interdependence does this represent?
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Study Notes
Instructor Background
- Over 25 years of experience in academia and research.
- Positions held at TAPMI, Manipal, Graduate Institute for Policy Studies (GRIPS) in Tokyo, Japan, Vienna University of Economics and Business, and XIMB since 2009.
- Received JSPS Fellowship (2001-02), Lise Meitner Fellowship (2008-09), and a postdoctoral fellowship from FRCT, Portugal (2007-08), the first Indian to receive the latter.
Academic Honors
- Associate Editor of OMEGA: The International Journal of Management Science since September 2016, first Indian on the editorial board.
- Served as an expert for the Czech Science Foundation (2016).
- Member of faculty selection committees at major universities in India.
Key Economic Principles
- Interdependence Principle: Best choices are influenced by personal decisions, others' choices, market developments, and expectations of the future.
- Cost-Benefit Principle: Evaluate complete costs and benefits; pursue choices where benefits are greater than or equal to costs.
Opportunity Cost Concept
- Definition: True cost of an item is what must be sacrificed to obtain it, encompassing trade-offs in decision-making.
- Decisions should factor in opportunity costs rather than just financial expenses.
- Scarcity: The fundamental economic problem arises from limited resources leading to necessary trade-offs.
Calculating Opportunity Costs
- Ask two fundamental questions regarding potential outcomes when pursuing a choice versus the next best alternative.
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Example:
- Consider the case of Nerida evaluating an MBA. Weigh tuition, cost of living, and lost income against continuing her current job.
Lessons on Opportunity Costs
- Changes in various factors can lead to different best choices.
Types of Interdependencies
- Individual Choices: Choices made affect other potential choices.
- Market Dependencies: Choices made by others in the same market impact options.
- Cross-Market Dependencies: Valuation shifts in one market can influence decisions in another.
- Temporal Dependencies: Current decisions affect future choices and available options.
Practice and Discussion Questions
- Reflect on personal choices and how they are impacted by individual decisions, choices of others, and future possibilities.
- Recognize the type of interdependency present in daily decision-making situations.
Summary Tips
- To reinforce learning, routinely ask about interdependencies and generate new options in decision-making scenarios.
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Description
Introduction to microeconomics by Dr. Biresh Sahoo, covering his background and experience in teaching and research. This lecture is part of the Microeconomics for Managers course.
