There are different definitions of microeconomics given by different economists and the common matter of almost all the definitions is that microeconomics refers to the study of economic behaviors of very small and individual units of an entire economy. Thus, first microeconomics divides the entire economy into several small parts and then studies each part […]
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The nominal gross domestic product is the total market value of all newly produced goods and services during each time, usually annually. Real GDP is nominal GDP adjusted for inflation or measurement of newly-produced goods and services at constant prices. Real GDP is used to measure the actual growth of production without any effects of
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After discussing several key concepts of national income at market price as well as at factor cost, in this article, we attempt to establish the relationship between concepts of national income at market price and factor cost. As we know that various concepts of national income can be measured in terms of market price as
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Introduction to Concepts of National Income at Factor Cost Factor cost is the total cost of production. It means factor cost is the total payment made by producers to the owners of factors of production in return for their assistance in the production of goods and services. So, it is the total of all earnings
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Introduction The price given by the final purchasers of the consumer as well as capital goods is known as the market price. If we determine the values of different concepts of national income at prevalent prices of goods and services, then the concepts are said to be measured at market price. Here we try to
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This article tries to briefly introduce major concepts of national income. Concepts of National Income Meaning of Concepts of National Income The concept of national income provides insight into the economic performance of a nation. National income has been defined in several ways. It may be the total market value of all final goods and
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Meaning of National Income In this article, we explain the meaning and features of national income. You will know what national income actually is and what it measures. Meaning and Features of National Income The human resources of a nation combinedly working with capital and natural resources produce annually various quantities of goods and services.
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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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Introduction The economy is a system in which all the economic agents are interdependently working and doing their respective economic activities. It means consumers are involved in buying goods and services, producers are producing and selling goods and services, and the government is there to become part of such transactions, as well as for control
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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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