Macroeconomics is the study of aggregates like national income, national product, total consumption, total saving, total investment, etc. The study of macroeconomics assists to realize the operation of a complicated modern economic system. It defines and describes how the economy functions and how the level of national income and employment is determined based on aggregate […]
Use or Importance of Macroeconomics Read More »
The word ‘scope’ refers to the range or area covered by anything, any subject, or any topic. Thus, considering this point the term scope of macroeconomics means the topics or issues that are covered by macroeconomics. Macroeconomics has got birth after the publication of J.M. Keynes’s General Theory of Employment, Interest, and Money in 1936.
Scope of Macroeconomics Read More »
Macroeconomics is the part of economics that studies about the economy. The unit to deal in macroeconomics is the entire economy rather than a part of the economy. Thus, macroeconomics deals with the economic problems faced by an economy. Here we will briefly discuss the meaning and features of macroeconomics. Ahuja (2016) states that macroeconomics
Meaning and Features of Macroeconomics Read More »
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,
Meaning and Definition of Demand Read More »
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
Difference between Microeconomics and Macroeconomics Read More »
The willingness to buy a commodity or a service for which necessary resources are available is known as demand. Both desire and resourcefulness are essential requirements for demand. An individual or a family will have demand for several things like food, house, computer, clothes, medicine, car, education, health care, entertainment, and so on to satisfy
Besides the analysis of consumer behavior and consumer demand, the technique of the indifference curve can be used in the analysis of several other economic phenomena and issues. Mainly the technique of indifference curves is applied in the areas like consumer’s surplus, the individual labor supply curve, numerous doctrines of welfare economics, the burden of
Application and Uses of Indifference Curve Read More »
Learning Objective To explain the derivation of the demand curve with help of the price consumption curve (Price effect and derivation of the demand curve) The price effect is defined as the change in quantity demanded of a commodity due to a change in its price, assuming the price of other goods and the income
Price Effect and Derivation of Demand Curve Read More »
Different factors directly affect the consumer’s equilibrium condition, including changes in the price of one good, the price of other goods, and money income. It means a change in the price of the goods; the price of other goods and the money income of the consumer brings a change in the consumer’s equilibrium from one
Decomposition of Price Effect into Substitution and Income Effects Read More »
The income of the consumer is also one of the major factors affecting the consumer’s equilibrium or objective of utility maximization. Consumer’s purchase decision of goods and services changes with the change in his/her income size because the size of income defines the consumer’s ability to pay and purchase. Here we will explain the meaning
Income Effect and Income Consumption Curve Read More »