Day: October 22, 2020

The ability and freedom of the consumer to determine the fundamental resource allocation decisions is limited by the following factors: Nature of the economic system – In general, the consumer is more sovereign in a free market oriented system where Read More …

Consumer Sovereignty is the willingness, ability and freedom of the consumer to largely influence the fundamental economic decisions of resource allocation. The consumer‟s willingness and ability to spend on goods and services is an indication to producers (firms) of what, Read More …

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 …