BBS Economics Note

Basic Terminologies of National Income

Leave a Comment / Macroeconomics, Study Materials / Enotes World

The key terminologies/(basic terminologies of National Income) related to national income are briefly explained below. Domestic Territory of a Country United Nations states that economic or domestic territory is the geographical territory, governed by a government within which, individuals, goods, and capital distribute freely. It includes the following geographic or electoral boundaries: Normal Residents of […]

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Major Properties of the Cobb-Douglas Production Function

7 Comments / Microeconomics, Study Materials / Enotes World

In this article, we explain the major properties of the Cobb-Douglas production function Introduction to Cobb Douglas Production Function The Cobb-Douglas production function is an empirical production function developed by Charles W. Cobb (American Mathematician) and Paul H. Douglas (American Economist) based on empirical studies of various manufacturing industries of the USA. This production function

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Concept of Stock and Flow Variables

Leave a Comment / Basic Economics, Macroeconomics, Study Materials / Enotes World

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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Allocation of Resources

1 Comment / Basic Economics, Study Materials / Enotes World

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 of Opportunity Cost

Leave a Comment / Basic Economics, Study Materials / Enotes World

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

Leave a Comment / Basic Economics, Study Materials / Enotes World

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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The Laws of Returns to Scale

Leave a Comment / Microeconomics, Study Materials / Enotes World

Introduction The laws of returns to scale explain the input-output relationship under the condition that both the inputs (labor and capital) are variable and their quantity increases proportionately (by same size or proportion) and simultaneously. When both the inputs labor and capital are increased proportionately, the scale or volume of production also increases. So, the

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Law of Variable Proportion

Leave a Comment / Microeconomics, Study Materials / Enotes World

Introduction The law of variable proportion is a widely observed law of production that takes place in the short run. The law was propounded by economists like Joan Robinson, Alfred Marshall, P.A. Samuelson, etc. This law is also known as the law of diminishing returns. The law is concerned with a short-run production function.

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Factors Affecting Price Elasticity of Demand

Leave a Comment / Microeconomics / Enotes World

In this article, we have explained different factors affecting the price elasticity of demand The value of price elasticity of demand is based on so many factors and such factors are collectively called determinants of price elasticity of demand. If the magnitude of price elasticity of demand is greater than one then the demand is

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The Law of Substitution

2 Comments / Microeconomics / Enotes World

Introduction German economist H.H. Gossen developed his second law as the law of substitution or the law of equi-marginal utility/the law of maximum satisfaction in 1854 AD. This law is further developed and popularized by Prof. Alfred Marshall. According to this law, the consumer allocates her/her limited money income among various goods for getting maximum

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