Inflation related concepts

Full Employment Level: Full employment is an economic situation in which all the available resources of the economy are fully utilised, and there exists no further scope of improvement in the economy. The Full employment level represents that economy is operating at its maximum potential. The level of unemployment is minimum, the prices in the economy […]

Non Competitive Markets

Monopoly market  Monopoly is that type of market where there is a single seller and large number of buyers. There is absence of close substitutes to the products.  Features of Monopoly market:-  (a) Single seller and large number of buyers.  (b) Restrictions on the entry of new firms.  (c) Absence of close substitutes.  (d) Full control […]

Market Equilibrium

Wage Determination in Perfect Competitive Labour Market –  Equilibrium of demand and supply of labour determines the wage rate. Marginal product of labour plays an important role in determining the demand for labour.   Marginal Revenue Product of Labour: – The marginal revenue product of labour (MRPL) is the change in revenue that results from employing an additional […]

The Theory of the Firm under Perfect Competition

Minimum Price Ceiling: It means that producer are not allowed to sell, the goods below the price fixed by Government, When government finds that equilibrium price is too low for the produce, then Govt. fixes a price ceiling higher than equilibrium price to prevent the possible loss to the producers. The price is also called floor price or […]

Production and Costs

Production: – It is mainly transformation of resources into commodities.  Production Function: Physical inputs. Production function of a firm describes the relationship between the output and the factors of production which are being used in the production process. It shows the required number of inputs needed to produce the maximum level of final output   Marginal product refers to the change in […]

Theory of Consumer Behaviour

Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.   Utility is want satisfying power of a commodity. There are two types:-  • Total […]

Introduction to Microeconomics vs Macroeconomics

Allocation of resources:-  (i) What to produce and how much to produce?  (ii) How to produce?  (iii) For whom to produce?  What to produce: – An economy have unlimited wants and limited means having alternative use. Economy can’t produce all type of goods like consumer goods, producer goods etc. So, Economy has to make a choice what type […]

Govt unveils package to spur economic growth

Finance minister Nirmala Sitharaman has announced measures to revive growth, boost consumption and uplift investor and consumer sentiment.  key announcements:   Investors:  Enhanced surcharge on FPIs stands withdrawn. Surcharge on domestic investors in equity markets also withdrawn.  Aadhaar-based KYC for opening demat accounts and investment in mutual funds.  Govt working to bring offshore rupee market to domestic market.   Govt to consult with RBI to […]