MA Economics Notes TU

Sales Revenue Maximization Model/Baumol’s Model to Theory of the Firm

Leave a Comment / Managerial Economics, Study Materials /

Introduction William J. Baumol confronted the assumption of profit maximization and argued that maximization of sales rather than profit is the ultimate objective of the firm. So, a firm should direct its energies on promoting and maximizing sales. He, therefore, called his hypothesis as Sales Revenue Maximization hypothesis.  The sales maximization model is thus an alternative […]

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Indicators/Parameters of Economic Development

Leave a Comment / Development Economics, Study Materials /

Economic development is a multidimensional process. It is a dynamic process of change. Economic development is a positive change whereby opportunities, the living standard of people, etc. increases along with the economic prosperity of the nation. The measurement of the extent and pace of economic development and expressing it in any specific index is a

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The Deductive Method

Leave a Comment / Microeconomics, Study Materials /

Methods of Analysis Economic laws or generalization states the relationship between economic variables. Economic theory provides an explanation of the stated relation between the variables. It means economic theory brings out the logical reasoning and logical basis of generalization. An economic theory deduces generalization through the procedure of logical reasoning and explains the condition under

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Methodological Issues in Economics

Leave a Comment / Microeconomics, Study Materials /

Meaning of Methodology in Economics Every science follows certain methods for the formulation of its laws, principles, and theories. Since economics is a science, it also adopts certain methods for the discovery and formulation of its laws and principles thus there are certain methodological issues in economics. There are some writers, who recognize the claim

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Properties and Limitations of Economic Model

Leave a Comment / Microeconomics, Study Materials /

Economic theory tends to the construction of a model that can describe the economic behavior of individual units and their interactions which create the economic system of the region, a country, or the world. A model is a simplified representation of the real circumstance of economic entities. The model includes the major features of the

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Difference Between Economic Model and Econometric Model

Leave a Comment / Microeconomics /

Economic theories try to define the relationship between different economic variables. These relationships can be expressed into varieties of firms like graphs, tables, mathematical equations, and so on to make them more undersetting and more general. If the theoretical relations or theoretical models are checked against real-world data and if empirical data verify the relationship

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