Topics
Introduction to Micro and Macro Economics
Micro Economics
Macro Economics
Utility Analysis
- Utility
- Types of Utility
- Concepts of Utility
- Relationship Between Total Utility and Marginal Utility
- Law of Diminishing Marginal Utility
- Assumptions of Diminishing Marginal Utility
- Exceptions to the Law of Diminishing Marginal Utility
- Criticisms of the Diminishing Marginal Utility
- Significance of the Diminishing Marginal Utility
- Relationship Between Marginal Utility and Price
- Diminishing Marginal Utility
Demand Analysis
Elasticity of Demand
Supply Analysis
Forms of Market
Index Numbers
National Income
- Concept of National Income
- Features of National Income
- Circular Flow of National Income
- Different Concepts of National Income
- Methods of Measurement of National Income
- Output Method/Product Method
- Income Method
- Expenditure Method
- Difficulties in the Measurement of National Income
- Importance of National Income Analysis
Public Finance in India
Money Market and Capital Market in India
- Financial Market
- Money Market in India
- Structure of Money Market in India
- Organized Sector
- Reserve Bank of India (RBI)
- Commercial Banks
- Co-operative Banks
- Development Financial Institutions (DFIs)
- Discount and Finance House of India (DFHI)
- Unorganized Sector
- Role of Money Market in India
- Problems of the Indian Money Market
- Reforms Introduced in the Money Market
- Capital Market
- Structure of Capital Market in India
- Role of Capital Market in India
- Problems of the Capital Market
- Reforms Introduced in the Capital Market
Foreign Trade of India
- Internal Trade
- Foreign Trade of India
- Types of Foreign Trade
- Role of Foreign Trade
- Composition of India’s Foreign Trade
- Direction of India’s Foreign Trade
- Trends in India’s Foreign Trade since 2001
- Concept of Balance of Payments (BOP)
Introduction to Micro Economics
- Features of Micro Economics
- Analysis of Market Structure
- Importance of Micro Economics
- Micro Economics - Slicing Method
- Use of Marginalism Principle in Micro Economics
- Micro Economics - Price Theory
- Micro Economic - Price Determination
- Micro Economics - Working of a Free Market Economy
- Micro Economics - International Trade and Public Finance
- Basis of Welfare Economics
- Micro Economics - Useful to Government
- Assumption of Micro Economic Analysis
- Meaning of Micro and Macro Economics
Consumers Behavior
Analysis of Demand and Elasticity of Demand
Analysis of Supply
Types of Market and Price Determination Under Perfect Competition
- Market
- Forms of Market
- Market Forms - Duopoly
- Equilibrium Price
Factors of Production
- Factors of Production - Land
- Factors of Production: Labour
- Factors of Production: Capital
- Factors of Production - Feature of Capital
- Factors of Production - Organisation
Introduction to Macro Economics
- Features of Macro Economic
- Importance of Macro Economic
- Difference Between Mirco Economic and Macro Economic
- Allocation of Resource and Economic Variable
National Income
Determinants of Aggregates
- Total Demand for Good and Services
- Concept of Aggregate Demand and Aggregate Supply
- Consumption Demand
- Investment Demand
- Government Demand
- Foreign Demand
- Difference Betweeen Export and Import
- Effect of Population of Consumption Expediture
- Types of Investment Expenditure
- Micro Eco-Equilibrium
Money
- Meaning of Money
- Type of Money
- Primary Function
- Secondary Functions
- Standard of Deferred Payment
- Standard of Transfer Payment
- Money - Store of Value
- Concept of Barter Exchange
- Difficulties Involved in the Barter Exchange
- Monetary Payments
- Concept of Good Money
Commercial Bank
Central Bank
- Definition - Central Bank
- Central Bank Function - Banker's Bank
- Central Bank Function - Controller of Credit
- Monetary Function of Central Bank
- Non Monetary Function of Central Bank
- Method of Credit Control - Quantitative
- Repo Rate and Reverse Repo Rate
- Central Bank Function - Goverment Bank
Public Economics
- Introduction of Public Economics
- Features of Public Economics
- Meaning of Government Budget
- Objectives of Government Budget
- Features of Government Budget
- Public Economics - Budget (1 Year)(1 April to 31 March)
- Types of Budget
- Taxable Income
- Budgetary Accounting in India
- Budgetary Accounting - Consolidated , Contingency and Public Fund
- Components of Budget
- Factor Influencing Government Budget
- Price Elasticity of Demand (Ep)
- Income Elasticity of Demand (Ey)
- Cross Elasticity of Demand (Ec)
Notes
Types of Elasticity of Demand:
1) Income Elasticity:
It refers to the degree of responsiveness of a change in quantity demanded to a change in the income only, other factors including price remain unchanged. It is expressed as :
`"Ey" = "Percentage change in Qty. Demanded"/"Percentage change in Income"`
`"Ey" = "% Δ Q"/"% ΔY"`
`="ΔQ"/"Q"÷"ΔY"/"Y"`
`="ΔQ"/"Q"xx"Y"/"ΔY"`
Where,
Δ = Represents Change
Q = Orignal demand
Y = Orignal income
ΔQ = Change in quantity demanded
ΔY = Change in income of a consumer
You should know :
• Positive income elasticity:
Normal goods for which demand increases with increase in income.
• Negative income elasticity:
Inferior or goods for which demand decreases with increase in income of consumer.
• Zero income elasticity:
Necessary goods for which demand remains constant with increase in income of the consumer.
2) Cross elasticity :
It refers to a change in quantity demanded of one commodity due to a change in the price of other commodity. (Complementary goods or substitutes)
`"Ec" ="Percentage change in Qty. demanded of A"/"Percentage change in Price of B"`
Symbolically,
`"Ec"="%ΔQ"_"A"/"%ΔP"_"B"`
`="ΔQ"_"A"/"Q"_"A"÷"ΔP"_"B"/"P"_"B"`
`="ΔQ"_"A"/"Q"_"A"xx"P"_"B"/"ΔP"_"B"`
Where,
QA = Original quantity demanded of commodity A
QA= Change in quantity demanded of commodity A
PB = Original price of commodity B
ΔPB = Change in price of commodity B
You should know :
• Positive cross elasticity :
Substitute goods. Example, tea and coffee.
• Negative cross elasticity : Complementary goods. Example, tea and sugar.
• Zero cross elasticity : Non-related goods. Example, tea and books.
3) Price elasticity :
According to Prof. Alfred Marshall, price elasticity of demand is a ratio of proportionate change in the quantity demanded of a commodity to a given proportionate change in its price only.
`"Ed" ="Percentage change in Qty. demanded"/"Percentage change in Price"`
`"Ed"="%ΔQ"/"%ΔP"`
`="ΔQ"/"Q"÷"ΔP"/"P"`
`="ΔQ"/"Q"xx"P"/"ΔP"`
Where,
Q = Original quantity demanded
ΔQ = Difference between the new quantity and original quantity demanded
P = Original price
ΔP = Difference between new price and original price
Related QuestionsVIEW ALL [47]
Read the extract given below and answer the questions.
|
The Economic Times - 2024 “Lakshadweep becomes new keyword for investors. Praveg caught shareholder’s attention as it had last month received a work order for the development of operation, maintenance and management of atleast 50 tents at Lakshadweep’s island. The resorts will also offer commercial activities like scuba diving, destination weddings, corporate functions etc. Small cap soars 43% in 3 days. It is known for its luxury resorts in tourist places. During the day the stock rallied 17% to hit an all time high of Rs. 1,187.95" |
- What commercial activities would the resorts offer?
- State the quality of a factor of production highlighted above.
- Define price elasticity of demand.
- State the doctrine of Laissez faire.
