Category Archives: Economics

Law of diminishing marginal utility

Today we will discuss the law of diminishing marginal utility commonly known as law of DMU. It is known as Gossen’s first law also. It explains consumer behaviour. According to it as we go on consuming more and more units … Continue reading

Posted in Economics | Leave a comment

2 Methods of economics

There are two methods of economics Deductive method Inductive method Deductive method- classical economists favour this method. It is also known as hypothetical or abstract or priori or analytical method. Under this method there are following steps:

Posted in Economics | Leave a comment

Features and Criticism of Economics as a Science of wealth

Economics is considered as science of wealth as it is a study of the factors which are responsible for wealth generation. Thus in Economics we study a body of knowledge which relates to wealth. Economics as a science of wealth … Continue reading

Posted in Economics | Leave a comment

Central Problems of an Economy

Human wants are unlimited and the resources to satisfy these wants are scarce. Every individual tries to satisfy more and more of his wants. The scarcity of resources in relation to wants give rise to the problem “how to use … Continue reading

Posted in Economics | Tagged | Leave a comment