Types of Economic Planning

Economic planning has become a craze in modern times. It initiates, controls and regulates the economic activities by the state, with a view to achieving well defined objectives within a given time period. The control by the state on economic activity is different in different countries. Let us discuss in brief the various forms of planning which are being practiced in various countries of the world. General Planning and Partial Planning: In general planning, a comprehensive and integrated plan is conceived, initiated and directed by a central authority. The plan covers all aspects of the economy and the central authority [...]

By |2021-08-06T10:36:36+05:00August 6th, 2021|Development Economics|0 Comments

Strategy of Economic Planning

Economic planning implies the setting of certain targets which are tried to be achieved within a planned period. The targets are to be accomplished through various measures. Strategy of planning implies the selection of measures and methods out of various alternatives to achieve the targets. Strategy of planning is not to be the same for all countries, due to different political systems and periodical requirements for economic development. The following elements are taken into consideration by the planners before deciding the strategy of planning. Growth Rate: Determination of the overall growth rate occupies a central position in the strategy of [...]

By |2021-08-06T10:33:05+05:00August 6th, 2021|Development Economics|0 Comments

Aims and Objectives of Economic Planning

Planning is regarded as a solution for all economic ills. It is therefore, advocated for the achievement of a variety of objectives. The objectives are not the same for all the countries not for all times. The objectives depend on the stage of economic development, socio-economic conditions and requirements of particular situations. A planning authority makes an assessment of the variable domestic and external resources and keeping in view the resource constraint, determines the objectives and targets of a plan with a duration of five years. An underdeveloped economy cannot depend upon single objective planning but aims at multi-objective planning. [...]

By |2021-08-06T10:23:05+05:00August 6th, 2021|Development Economics|0 Comments

Measurement of Economic Development

Different economists have used various measures to access the level of development at a particular time. Some measures have been given below: Prof. W.W. Rostow: Economic development is measured in "daily average product of labour", i.e. if daily average product of labour is increasing country is developing and this increase is possible only when there is optimum use of productive resources, principle of division of labour is adopted and modem technology is used so that labour efficiency could increase, H.F. Williamson, Arthur Lewis: These economists measure economic development in per capita income. According to them if per capita income is [...]

By |2021-08-05T11:22:33+05:00August 5th, 2021|Development Economics|0 Comments

Supply: Meaning and Definition of Supply

The amount of goods and services produced are called production and the portions of the produce offered for sale at prevailing prices in a given period of time is known as supply. OR "Supply is a schedule of the amount of a product that would be offered for sale at all possible prices, at any instant of time e.g., a day, a week and so on". Similar to demand supply is always related to a price of that product but there is a direct relation between supply and price i.e., at higher prices larger quantities will be offered because larger [...]

By |2021-10-22T10:23:56+05:00August 4th, 2021|Economics, Microeconomics|0 Comments

Demand: Meaning and Definition of Demand

Meaning of Demand: Demand means the desire to purchase a commodity for which the consumer has the power to purchase. So, demand has two conditions: (1) Desire/ Willingness to purchase (2) Power to purchase or Purchasing power If either of the two conditions of demand are not fulfilled, demand will not come into existence. The desire for a commodity is not demand, for example, the desire of a poor man to purchase a car does not demand because he has no power to purchase it. On the other hand, a rich man has the power to purchase a car, but [...]

By |2021-10-22T10:23:48+05:00July 17th, 2021|Economics|0 Comments

How do we measure utility or pleasure?

This question cannot be answered but back in the 1800s economists such as Jeremy Bentham thought that eventually they would be able to measure pleasure by measuring brain waves. In the expectation of this discovery they even developed a measure of pleasure which they called a util. They predicted that someday a machine that could measure utils would be developed. Not surprisingly they called this machine a Utilometer. The Utilometer was to be connected to people's heads and an economist would read it as people went through their daily activities. Util: Although utility cannot be measured, this term is sometimes [...]

By |2021-10-22T10:23:42+05:00January 1st, 2021|Economics|0 Comments

Relationship Between Total Utility and Marginal Utility

Total utility refers to the total satisfaction one gets from one's consumption of a product while marginal utility refers to the satisfaction one gets from the consumption of an incremental or additional unit of a product above and beyond what one has consumed up to that point. Here, it is necessary to define the principle of diminishing marginal utility, which states that the marginal utility of an item tends to decline as more of the item is consumed over any given period. The relationship between total utility and marginal utility exist as at first unit of consumption of a commodity [...]

By |2021-10-22T10:23:25+05:00December 13th, 2020|Economics|0 Comments

Utility: Meaning and Different Aspects of Utility

Utility: When we consume a product, we in fact use its utility. Therefore, we are now analyzing the concept of utility. Utility is the power of a product by which a human want is satisfied. For example, bread satisfies hunger, cloth satisfies the want for clothes and T.V. satisfies the want for entertainment. The more we want a product the more utility we get from it and if we don't use a product, we don't get utility from it. Hindus don't eat beef so there is no utility for them in it. Muslims don't eat pork. So, they don't find [...]

By |2021-10-22T10:23:09+05:00December 9th, 2020|Economics|0 Comments

Utility: Meaning and Characteristics of Utility

Utility: An early introduction of the utility notion into social sciences was accomplished by the English Philosopher Jeremy Bentham (1748-1831) After studying legal theory to draw some social legislation. He proposed that society should be organized on the “Principle of Utility” which he defined as “Property in any object to produce pleasure, good, or happiness or to prevent pain, evil or unhappiness”. All legislations according to Bentham should be designed on utilitarian principles to promote “The greatest happiness of the greatest number”. The next step in the development of utility theory came when the Neo-classical economists such as William Stanley, [...]

By |2021-10-22T10:22:44+05:00November 24th, 2020|Economics|0 Comments

Measurement Scales: Nominal, Ordinal, Interval and Ratio

Measurement Scales: By measurement, we usually mean the assigning of numbers to observations or objects and scaling is a process of measuring. The four scales of measurement are briefly mentioned below: Nominal Scale: The classification or grouping of the observations into mutually exclusive qualitative categories or classes is said to constitute a nominal scale. For example, students are classified as male and female. Number 1 and 2 may also be used to identify these two categories. Similarly, rainfall may be classified as heavy, moderate and light. We may use number 1, 2 and 3 to denote the three classes of [...]

By |2020-11-13T07:57:57+05:00November 13th, 2020|Statistics For Economists|0 Comments

Goods and Types of Goods in Economics

Goods: A good is a material thing used to satisfy a human want or in other words, a good is a material thing which has utility to satisfy any human want. For example, chair, table, book, table lamp, paper, pen etc. are all goods which are used to satisfy different wants. Economic goods can be divided into these categories: Consumer Goods: Consumer goods are the things which have utility to satisfy human wants. These goods are directly used by the people themselves to satisfy wants. For example, food, shelter, clothing, T.V., radio, refrigerator etc. are goods while the services are [...]

By |2021-10-22T10:22:31+05:00November 9th, 2020|Economics|0 Comments

Difference between Goods and Services

In order to satisfy unlimited wants people take up economic activities in the form of land, labour, capital and organization. As a result of the combination of these four factors of production goods and services are produced. These are the (limited) resources to satisfy human wants. What are the real resources or what are goods and services? Goods: A good is a material thing used to satisfy a human want or in other words, a good is a material thing which has utility to satisfy any human want. For example, chair, table, book, table lamp, paper, pen etc. are all [...]

By |2021-10-22T10:22:18+05:00November 9th, 2020|Economics|0 Comments

Human Wants: Meaning, Types and Their Characteristics

Human Wants: Human wants are the ends which human beings pursue for their satisfaction. Human wants are the instinctive desires which are however to be fulfilled. For example, everybody wants food, clothing, shelter etc. not only this, people also want bungalow, cars, air conditioners etc. Human wants keep on rising with the passage of time and there is no end to them. Human wants can be classified as (i) Economic wants (ii) Non-Economic wants. (i) Non-Economic Wants: Non-economic wants are the kind of wants which can be satisfied without undertaking any economic activities in the form of land, labour, capital [...]

By |2021-10-22T10:22:11+05:00November 7th, 2020|Economics|0 Comments

Managerial Economics by William F. Samuelson and Stephen G. Marks

DESCRIPTION Samuelson & Marks’ Managerial Economics, 7th Edition provides a detailed introduction to managerial economics for undergraduates, MBAs, and executives. This text illustrates the central decision problems managers face and provide the economic analysis they need to guide these decisions. TABLE OF CONTENTS Chapter 1 Introduction to Economic Decision Making Section I: Decisions within Firms Chapter 2 Optimal Decisions Using Marginal Analysis Chapter 3 Demand Analysis and Optimal Pricing Chapter 4 Estimating and Forecasting Demand Chapter 5 Production Chapter 6 Cost Analysis Section II: Competing within Markets Chapter 7 Perfect Competition Chapter 8 Monopoly Chapter 9 Oligopoly Chapter 10 Game Theory and [...]

By |2021-07-19T11:13:29+05:00October 20th, 2020|Books|0 Comments
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