Law of Diminishing Marginal Utility
Ajit Kumar The law of diminishing marginal utility states that as more and more units of a commodity are consumed, the marginal utility derived from every additional unit must decline. This means…
2023
Relationship between Total utility and Marginal utility
Quantity of Ice cream Total utility Marginal utility 0 0 – 1 10 10 2 18 8 3 25 7 4 31 6 5 31 0 6 29 -2
Consumer equilibrium
Consumer equilibrium refers to a situation when the consumer’s satisfaction from a commodity equals the amount that they are paying to purchase the commodity. Price can be easily measured, however,…
Understanding Microeconomics: An Introduction to the Study of Individual Economic Behavior
Microeconomics is a branch of economics that focuses on the study of individual economic behavior. It is concerned with the decisions made by individuals, households, and firms, and how these…
Foreign exchange
It is the rate, at which domestic currency is exchanged for foreign currency. For Example 1$= 70 Indian Rupee. Exchange rate system can be constituted as: Fixed Exchange rate system…
Understanding the Balance of Payments*
The statement which holds all the transactions of a country’s foreign trade with other countries for a specified period of time, is called balance of payment. According to Kindleberger, “Balance…
Revenue deficit
When revenue expenditure is greater than the revenue receipts of the government, it is called Revenue deficit.It does not include Capital receipt and capital expenditure. Revenue deficit = Revenue expenditure…
budget expenditure
It refers to estimated expenditure of the government on its development and non-development programme or its planned and non-planned programme during a particular fiscal year. Budget expenditure refers to the…
Budget
A budget is a financial plan that outlines the estimated income and expenses over a specific period, typically on a monthly or annual basis. It serves as a tool for…
Methods of Credit Control
Credit control refers to the various measures taken by a central bank or monetary authority to regulate and manage the availability, cost, and use of credit in an economy. Effective…