LQ.1. Explain the law of diminishing utility. Illustrate your answer with appropriate diagrams. Discuss also the assumptions and limitations of this law. Law of Diminishing Marginal utility (Gossen’s First Law) “The Law of Diminishing Marginal Utility states that as a consumer consumes more and more units of a good, then
LQ-1 Define development economics. What is the scope/significance of development economics. What is Development Economics? Development economics is the subfield of economics which studies how economies are transformed from stagnation to growth and from low income to high income status and overcome the problem of extreme poverty. Why a separate
In the previous post we explained the concept of regression analysis in detail along with its meaning, uses and objectives. Moreover, we also discussed how regression analysis differs from correlation analysis and causation. Further, we differentiate conditional and unconditional mean. To read previous article click Nature of Regression Analysis. In
In this post, we will discuss what is a project, its key characteristics, major types, and practical examples. We will also examine important project dimensions and explain the complete project life cycle, starting from initiation to its completion. This structured approach will help you develop a strong conceptual foundation of
In this post we will discuss what is project appraisal, importance and aspects of project appraisal with examples. What is Project Appraisal Definition Project appraisal is the systematic evaluation of a proposed project to determine its feasibility, viability, and potential for success before committing resources to its implementation. Some of
Rostow stages of economic development are 5 stages through which every must pass through to become developed. These stages are given by an American Economic historian Walter W. Rostow in his book “The Stages of Economic Growth” in 1960. These stages are. The traditional society The precondition for takeoff The
Measurement of National Income In the post National Income and Its various Concepts, we define national income as National Income is the sum of income earned by all factors like land, labor, capital and entrepreneur in form of rent, wages, interest and profit in a year. Alfred Marshall in his book
In this post we will discuss the basic introduction to public finance including the concepts of budget, various types of budgets, sources of public revenue, types of public expenditure. Moreover, we pass through definitions of fiscal policy and its objective along with tools of fiscal policy. Public finance is the
LQ 1: Define Macroeconomics. Discuss its scope, importance and limitations. Macroeconomics Macroeconomics deals with the behavior and performance of the economy as a whole. It studies aggregate economic activities such as aggregate output, aggregate demand, national income, aggregate price level, employment level, international trade, business cycles etc. Scope of Macroeconomics
GDP has four types of expenditure such as consumption, investment, government expenditure and net exports. We call this expenditure as components of GDP. Each unit of money spend in the economy fall into one of these 4 components of GDP. Before studying components of GDP, we must know what GDP
In the previous lecture we discuss the types and nature of economic data used in any empirical economic analysis. To read click on Types of Economic Data. We also discuss the sources of obtaining economic data. In this post will discuss about the nature of regression analysis, its objectives, uses in
What is Foreign Aid Foreign aid is the transfer of resources from one country (usually a developed country) to another (usually a developing or underdeveloped country) to support economic needs and development goals of recipient. It can be in the form of grants, loans, technical assistance, or goods like food
Types of Economic Data Data is central to any empirical analysis. An empirical analysis uses data to test a hypothesis or theory or to estimate a relationship. The first step in any empirical analysis is to formulate a research question. Model specification is the next step followed by obtaining data.
What is National Income (NI) National Income (NI) is the sum of income earned by all factors like land, labor, capital and entrepreneur in form of rent, wages, interest and profit in a year. It can also be defined as the total market value of all final goods and services
What is National Income? Before defining national income, it is necessary to define income. Any benefit either in form of money or other that is received against a service is called income. There are four sources of income for an individual. Rent: It is the income receive from lending their
