Archive for August, 2009
Law of Diminishing Marginal Utility
August 30, 2009 | Economics | Comments Off
Law of diminishing marginaL utility when a good is free: The law of diminishing marginal utility describes a familiar and fundamental tendency of human behaviour. The law of diminishing marginal utility states that, “as a consumer consumes more an...
Total Utility and Marginal Utility
August 29, 2009 | Economics | Comments Off
Total Utility and Marginal Utility: People buy goods because they get satisfaction from them. This satisfaction which the consumer experiences when he consumes a good, when measured as number of utils, is called utility. It is here necessary to make...
Concept Of Utility
August 28, 2009 | Economics | Comments Off
Concept Of Utility: Jevon (1835-1882) was the first economist who introduced the concept of utility in economics. According to him ‘utility’ is the basis on which the demand of an individual for a commodity depends ‘Utility’ is defined as th...
Cardinal Utility Analysis
August 27, 2009 | Economics | Comments Off
Cardinal Utility Analysis: Human wants are unlimited and they are of different intensity. The means at the disposal of a man are not only scarce but they have alternative uses. As a result of scarcity of resources, the consumer cannot satisfy all hi...
Application of Economics
August 26, 2009 | Economics | Comments Off
Importance of the Study of Economics: The importance and utility of the subject of Economics can be judged from this fact that it is now considered to be one of the most important and useful subject as compared to any other branch of knowledge. The...
Macro Economics
August 26, 2009 | Economics | Comments Off
Macro Economics: The name ‘macro’ is derived; from the Greek word “uakpo” which means huge or large. Macro-economics, the remaining half of economics, is the study of the manners of the economy as a total. In other words, macro economics de...
Microeconomics
August 26, 2009 | Economics | Comments Off
Microeconomics is derived from a Greek word means small. Basically it is the study of particular economic units, firms, households, individual prices, wages, income, individual industries and commodities. The theory of microeconomics or price theory ...
Economic Analysis and Economic Policy
August 25, 2009 | Economics | Comments Off
Economic Analysis and Economic Policy: Economics, like other social sciences, has two aspects. One aspect is analytical and the other is practical. Both these aspects are of great importance because economic analysis is the basis for economic polic...
Methods of Economics Analysis
August 25, 2009 | Economics | Comments Off
Methods of Economics Analysis: An economic theory derives laws or generalizations through two methods (1) Deductive Method and (2) Inductive Method. These two ways of deriving economic generalizations are now explained in brief. Deductive Method...
Nature of Economic Laws
August 24, 2009 | Economics | Comments Off
The Nature of Economic Laws: Economics, like all other sciences, has drawn its own set of generalizations or laws. Economic laws are nothing more than careful conclusions and inferences drawn with the help of reasoning or by the aid of observation ...