Day: October 22, 2020

Ceteris Paribus is a Latin expression which means all other things remaining constant. It is an essential component of a scientific method. If, for example, we wish to examine the effect of price on demand we do not simultaneously change Read More …

In society, people tend to vary in their ideas and views. They are influenced differently by different events in different situations. Similarly, such events may or may not happen as expected and their explanations may or may not be by Read More …

Production possibility curve (PPC) is the locus of combinations of two commodities whose production fully and efficiently utilizes the available resources and technology in a given period of time. It shows the maximum output a county can produce with its Read More …

The opportunity cost of an action is the value of the benefit expected from the next best foregone alternative. It is a derivative concept which arises due to the scarcity of resources (for production) or goods and services (for consumption) Read More …

Scarcity being the central economic problem is defined as the inadequacy/ insufficiency/ inability of (economic) resources or goods and services available to fully satisfy unlimited wants. Human wants are people’s desires for goods and services (backed by the ability to Read More …

a) Specialization The economies of mass production upon which modern standards of living are based would not be possible if production took place in self-sufficient farm households or regions. As such, many societies and individuals specialize or concentrate on only Read More …

There are no economies in the world which are entirely „market‟ or planned, all will contain elements of both systems. The degree of mix in any one economy is the result of a complex interaction of cultural, historic and political Read More …

Is a system where all major economic decisions are made by a government ministry or planning organisation. Here all questions about the allocation of resources are determined by the government. Features of this system The command economies relies exclusively on Read More …

The free market system is where the decision about what is produced is the outcome of millions of separate individual decisions made by consumers, producers and owners of productive services. The decisions reflect private preferences and interests. For the free Read More …

Economics is used in two important ways today. The first is to describe, explain and predict the behaviour of production, inflation, incomes etc. But for many, the fruit of such labours is found in a second task – to improve Read More …