Last time we discussed the 8 factors affecting demand. Let us today discuss the Concept and types of Demand schedule.
Demand schedule is the tabular presentation showing the relation between quantity demanded and price of the commodity.
It is of two types:
- Individual demand schedule
- Market demand schedule
- Let us discuss them:
Continue reading “Concept and 2 types of Demand schedule”
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”
Last time I have discussed about the concept and nature of utility. Today I will discuss about the Types OF UTILITY APPROACH.
Utility approach is basically of 2 following types: Continue reading “TYPES OF UTILITY APPROACH”
CONCEPT OF UTILITY
Dear friends let us first discuss the concept or meaning of utility.
Utility may be defined as the want satisfying power of a good. A commodity is demanded because of the want satisfying power of a commodity as long as good satisfy human want they set to possess. Continue reading “Concept and nature of utility”
Today we will discuss the concept of opportunity cost with the help of examples.
The concept of opportunity cost was developed by Austrian school of economics. Later on it was popularized by American economist Devenport. Continue reading “Concept of Opportunity cost”
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:
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.
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.
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”
Economics is the study of human activities which they perform with their limited resources to satisfy their unlimited wants. Continue reading “Concept of Economics and Economic Problem”
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.
||Five year plans
||Objectives of plans
||First Five Year Plan
- Social service
- Reconstructing economy
- To solve food crisis and increasing production capital
||Second Five Year Plan
- To increase investment in basic and key industries
- To solve the problem of employment and inequality
||Third Five Year Plan
- To expand basic industries like steel, chemical and fuel
|| Plan Holiday
- 14 banks were nationalized and green revolution happened
||Fourth Five Year Plan
- Growth with stability
- Improve public sector
- To increase employment opportunities and self sufficiency in agriculture sector
||Fifth Five Year Plan
- Increase employment, medical facilities, improve social welfare
- Agricultural development, export promotion and import reduction
||Sixth Five Year Plan
- To encourage modernization
- Reduce poverty
- To improve standard of living and reduce regional disparities
||Seventh Five Year Plan
- To provide people food, cloth, shelter
- Universal education and health facilities
||Eighth Five Year Plan
- To reduce population explosion
- To make primary education compulsory
- To strengthen infrastructure
||Ninth Five Year Plan
- To improve quality of life
- To regional imbalance
- To promote self dependence
||Tenth Five Year Plan
- To reduce regional discrepancies of financial market
- To accelerate saving and promote investment
- To make strategies for reducing population
||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
||Twelfth Five Year Plan
- To improve the international trade and promoting export
- Making India progressive
||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.
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 of a commodity, the utility obtained from every additional unit goes on decreasing. Law can be explained with the help of following example: Continue reading “Law of diminishing marginal utility”