Meaning of Stock Variables A stock can be defined as an amount determined at a particular point in time. On August 1, 2020, there may be Rs. 20,000 in your bank account. On August 10, 2020, there may be Rs. 25,000 in your bank account. All such values are stock values, as these are measured […]
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Resource allocation plays a vital role in solving economic optimization problems. The productive resources like land, labor, capital, equipment, technology, etc. are inadequately available. Due to the inadequate availability of resources, the issue of resource allocation becomes serious. Resource allocation can be defined as the distribution of resources (human, financial, and natural resources) for various
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Concept and Meaning of Opportunicty Cost The problem of scarcity and choice gives birth to the concept of opportunity cost. It means the concept of scarcity and choice is also related to the economic problems of scarcity and choice. Resources are scarce and at the same time, they can be put into alternative uses. Therefore,
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Scarcity and Choice: The Emergence of Economic Problems Scarcity The wants of human beings are limitless and resources to fulfill them are limited. It is a fact that the total quantity of products that can be produced by applying the productive resources of an economy is insufficient to satisfy all the needs and wants of
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Meaning and Definition of Demand Demand for goods and services implies the number of goods and services that buyers are wanting or willing and capable to acquire at various potential prices during a particular time. In common sense, demand implies a desire or wish to have something or some goods or services. But in economics,
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The subject matter of economics is broadly divided into two branches, namely microeconomics and macroeconomics. Microeconomics and macroeconomics have become household worlds today. Microeconomic and macroeconomic analysis is now considered two important approaches to economic analysis. Microeconomics The prefix ‘micro’ is originated from the Greek word ‘mikros’, meaning small. It is the study of the
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In the theory of supply, it is important to distinguish between a movement along the supply curve and a shift in the supply curve (change in quantity supply and change in supply). The concept related to movement along and shift in supply curve can explain below; Movement along a Supply Curve/Change in Quantity Supply When
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A supply curve is a diagrammatic presentation of the law of supply. It delivers the same information as a supply schedule does. The supply curve is a geometric expression of the schedule showing a positive relationship between the price of the commodity and its supply. The supply curve is derived based on the same assumptions
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A supply schedule is a tabular representation of various combinations of the price of the product and quantity supply that the sellers are willing to produce and offer for sale in the market during a given time. Therefore, the supply schedule also expresses the relationship between the price of the product and the quantity supply
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The law of supply or supply hypothesis gives us the relationship between price and quantity supply of the commodity. It states that other things remaining the same, the quantity of any commodity that a firm will produce and offer for sale rises with a rise in its price and falls with a fall in its