Economic

09 Differences between Microeconomics and Macroeconomics

Microeconomics and Macroeconomics

Microeconomics and macroeconomics are considered as the most important division of the broad range of economic concepts. Economists use different methods to analyses economic issues. The standard of modern economies is discussed as positive economics and normative economics. In positive economics, different economic issues are described based on the existing situation based on the facts, …

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Economic Systems – 06 Main Economic Systems

Economic systems

Economic systems are a complex network of individuals, organizations, and institutions and their social and legal interrelationships. The function economic system is to solve the basic economic problems. Based on the relative scarcity of economic resources all the economies face a common issue “Choice”. The choice is an issue of allocating available limited resources in …

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The Price Theory

price theory

The price Theory is a microeconomic principle that explains that the price of any specific product is determined through the interaction of demand and supply forces in the market. The price so determined is considered as the equilibrium or the market price of the product. As per the law of demand, the price of the …

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Scarcity in Economics and Division of Labor – 7 advantages of division of labor

Scarcity

Scarcity is the basic economic issue that all societies face equally. In economics, the term “Scarcity” refers to the situation that “the available resources in an economy are not sufficient to fulfill all the human wants completely”. This is a theoretical concept that is based on the insatiable nature of the human mind. Once the …

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Opportunity Cost

Opportunity Cost

Opportunity Cost is an important concept in computing the true cost of resource allocation either in consumption in production. The concept of opportunity cost is used by the economists’ true cost of resource utilization. In economic analysis, two types of cost are considered.   Financial cost – this is the cost incurred in the form of …

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Market Supply

Market Supply

Similar to the demand of production, the market supply of a product is the horizontal summation of the individual firm’s supply schedules. The market supply is a dependent variable that will be influenced by some other factors mentioned below. Price of the product Prices of other products Prices of the factors of productions Government policies …

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Demand in Economics

Demand

In economics, the term “Demand” refers to the desire for goods and services backed by the purchasing power and the willingness to purchase. Mere “Desire” for products does not reflect in the market. The demand supported by the purchasing power is termed as the “Effective demand”. Hence, the demand for a good can be defined …

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