Consumption function
Ajit Kumar It is the function that represents the relationship between consumption and income. It depicts a positive relationship between the two variables and helps in determining the rate of change in…
Ajit Kumar
Law of consumption
This law was introduced by the renowned economist Keynes. This law states that, with an increase in income, the consumption also increases but at a lesser rate as compared to…
Circular flow of income
When a producer produces a product or service with the help of different factors of production like labour, capital, land, etc., and after production, payment is made to each factor…
Difference between Capital Goods and Consumer Goods
Capital Goods Consumer Goods 1. These goods are used by producers as a part of the production process.2. These goods are used to generate revenue.3. e.g., Coffee machine 1. These…
Classification of goods
1. Consumption Goods : These are the goods which are directly consumed by a buyer/consumer. For example Butter, bread, vegetables, smartphones, Furniture, etc. 2. Durable Goods These are the goods…
Macro Economics
Macroeconomics deals with the aggregate of systems of the economy. For example, aggregate demand, aggregate supply and Gross domestic product (GDP), etc. It measures the economy as a whole.