8 factors affecting demand

Concept of demand: Before discussing the factors affecting demand, let us discuss the concept of demand.

Demand is the ability and willingness to buy a product at given price and a particular time. The word demand is different from the want and the word desire. Want means that a person has the money but he does not want to spend. Desire is just a wish; it means that a person does not have the money to buy a product.

Demand has following conditions:   

1.Time 2. Price that is why Demand is the ability and willingness to buy a product at given price and a particular time. Continue reading “8 factors affecting demand”

Difference between positive economics and normative economics

Last time we have discussed the types of economics. Today we will discuss the difference between positive economics and normative economics. Let us discuss it:

POSITIVE ECONOMICS:  

It deals with the economic issues of past, present and future and tells about what was, what is, what would be. Positive economics is basically based on the facts and figures which can be verifiable.

For example India is the second largest populated country; it is a positive statement nobody can deny it as it is based on the facts and figures.

NORMATIVE ECONOMICS:

It deals with the opinions of economists related to the economic issues and tells about what ought to be. Normative economics is basically based on the opinions which can’t be verifiable. For example there should be the development industries in underdeveloped countries to make them developing countries. So this statement is just an opinion and it is just a judgment.

I hope you have understood the difference between positive economics and normative economics.

Types of Economics

The term economics is very common and Economics can be broadly classified into two parts:

MICRO ECONOMICS: in microeconomics we study “I” which means individual. It means in micro economics we study everything from the point of view of individual. The word micro itself means small. In micro economics we study individual firm, individual producer, individual consumer etc. Continue reading “Types of Economics”

Five year plans, the year of implementation and objectives of these plans

Dear friends, let us discuss today about the various five year plans, the year of implementation and objectives of these plans. The thirteenth plan is going on.

Year Five year plans Objectives of plans
1951-56 First Five Year Plan
  • Social service
  • Reconstructing economy
  • To solve food crisis and increasing production capital
1956-61 Second Five Year Plan
  • To increase investment in basic and key industries
  • To solve the problem of employment and inequality
1961-66 Third Five Year Plan
  • To expand basic industries like steel, chemical and fuel
1966-69  Plan Holiday
  • 14 banks were nationalized and green revolution happened
1969-74 Fourth Five Year Plan
  • Growth with stability
  • Improve public sector
  • To increase employment opportunities and self sufficiency in agriculture sector
1974-78 Fifth Five Year Plan
  • Increase employment, medical facilities, improve social welfare
  • Agricultural development, export promotion and import reduction
1978-79 Rolling Plan  
1980-85 Sixth Five Year Plan
  • To encourage modernization
  • Reduce poverty
  • To improve standard of living and reduce regional disparities
1985-90 Seventh Five Year Plan
  • To provide people food, cloth, shelter
  • Universal education and health facilities
1992-97 Eighth Five Year Plan
  • To reduce population explosion
  • To make primary education compulsory
  • To strengthen infrastructure
1997-2002 Ninth Five Year Plan
  • To improve quality of life
  • To regional imbalance
  • To promote self dependence
2002-2007 Tenth Five Year Plan
  • To reduce regional discrepancies of financial market
  • To accelerate saving and promote investment
  • To make strategies for reducing population
2007-2012 Eleventh Five Year Plan
  • To strengthen the weaker sections of the society
  • To empower women
  • To expand irrigation facilities
  • To improve quality of life of citizens
2012-2017 Twelfth Five Year Plan
  • To improve the international trade and promoting export
  • Making India progressive
2017-2022 Thirteenth Five Year Plan
  • To promote start up India
  • Making young entrepreneurs.

 

This was all about the various five year plans, the year of implementation and objectives of these plans. The thirteenth plan is going on.