Economics is a scientific social science discipline that studies how individuals, businesses, governments, and societies allocate resources to satisfy their unlimited wants and needs. It is a complex field that can be divided into two main branches: microeconomics and macroeconomics. Microeconomics deals with the individual units in terms of how and why the individual firm […]
Being the social science discipline, Economics is a complex field that revolves around the study of how individuals, businesses, and governments make decisions and allocate resources to satisfy their wants and needs. At the core of this discipline are a set of principles that guide economic decision-making and analysis. Let’s begin understanding the basic principles
Marginal utility total utility and diminishing marginal utility are the key concepts of micro-economics asked in the curriculum of higher secondary school. Utility analysis means how and how much satisfaction or benefits the given person derives from the commodity he chose. Meaning of utility in microeconomics In simple terms, utility is the satisfying power of
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In the monopoly market, single seller enjoys all the favourable conditions, and decides market price in the absence of others. Whereas, in oligopoly market, there are more than two players enjoy all the available benefits and they collectively determine price of product. This is the difference between monopoly and oligopoly markets. Monopoly vs duopoly vs
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In economics, the law of demand and supply is the most fundamental law helps to determine the prices of commodities. It is useful for both producers and consumers as it guide them when and how much to produce and how much to buy. This article would be easy guide in understanding the law of demand
Is it correct to say that “Country’s standard of living depends on it’s ability to produce goods and services?” if yes, then how does it results? Why do economists assert that a country’s standard of living depends on it’s ability to produce goods and services? What is the relationship between productive capabilities of nation and
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Not all the time, market is left on the vagaries of sentiments of surplus seeking consumers and producers. If the volatility breaks the tolerance range, government has to step in to recorrect. As a last resort, government improves market outcomes. List of 10 basic principles of economics 1.People face trade offs2.The cost of something is
The ability of free market to recorrect its failures and maintain reasonable equilibrium in the absence of much interventions are called the idea of invisible hand proposed by Adam Smith. This is why, “Markets are usually a good way to organise economic activity”, is a basic principle of economics. List of 10 basic principles of
It is widely accepted that trade always fuels business activities, empowers consumers to desire more, generates more jobs, saving, and overall living standards. In other words, at both ends, trade can make everyone better off. List of 10 basic economics principles 1.People face trade offs.2.The cost of something is what you give up to get
Prices of commodity consumers want determine the demand of given commodity. Because, more the prices, lesser the demand due to no willingness or ability to pay the rising price to commodity. This is the reason why people responds to incentives in terms of discounts, cash back, extra quantity, voucher, tax reliefs, etc. List of 10