Meaning of price effect, income effect and substitution effect - Separation of income effect and substitution effect of a price change - Slutsky's method - Hicks' method
Prof. Marshall writes that the application of marginal utility concept extends over almost every field of economics, including production, distribution, consumption, public finance, and so on.
Matters of economic of growth and decline hinge on the population. This is called human capital, and to truly understand the world, we must understand the role that populations play in an economy's growth or decline. This article will help you understand how human capital reshapes an economy.
President Trump pulled the United States out of the Trans-Pacific Partnership and has engaged in tariff wars with China, Canada, and other trading partners as he seems to be seduced by the false allure of protectionism.
Indifference curve analysis is basically an attempt to improve cardinal utility analysis (principle of marginal utility). An indifference curve is also known as iso utility curve (“iso” means same).
Meaning of consumer's equilibrium - assumptions - budget line or price line - indifference map - necessary conditions for consumer's equilibrium - deriving consumer's equilibrium graphically
What does 'Economic Facts and Fallacies' by Thomas Sowell cover? And how does it compare to other Thomas Sowell books?
Natural wool textiles are the best fabrics used during the winter to provide warmth. In this article you will know the history of wool, characteristics of wool fibers, woolen microstructure, sheep wool types, wool manufacturing process, uses, and the good washing of wool fabrics.
If the basic needs approach (BNA) sees poverty in terms of consumption deprivation, the capabilities approach (CA) looks at poverty as deprivation of opportunities required to lead the life people want to live..
The late 19th century was a critical time of change: social, economical, political, and more. This change resulted from the revolutions of the previous centuries. Three such revolutions in particular are the French Revolution, Scientific Revolution, and the Christian Reformation. The culmination of these three revolutions gave birth to new political, social, and economical ideologies of Capitalism, Socialism- governmental and non-governmental, and Communism/Anarchism. Each ideology broke bonds w
I originally wrote the base paper for this hub as part of an assignment for my Econ 224 Macroeconomics class over at American InterContinental University Online. I received an A on the paper, although it was a bit of a bear for me to write. There...
Silk is one of the finest and most strength natural fiber. In this article, you will know the history of natural silk, the life cycle of the silkworm, silk types, the chemical structure of silk fiber, physical and chemical properties, and how to maintain silk fabrics.
Being poor is no fun; among the many negatives are bad health, exposure to crime, and lack of education.
With a negative net worth, Zombie Banks would be required to file for bankruptcy if they were operating under normal business rules.
Gross Domestic Product is the standard measure of how well or poorly an economy is doing. Some economists say it’s a false indicator.
Gossen, a German economist, is the first to explain the law of diminishing marginal utility based on general observations of human behavior. Therefore, the law is also termed as ‘Gossen’s first law’.
Taxes are as old as sin, as certain as death, and as popular as a skunk at a lawn party, but they do fund social programs we all rely on.
The term “monetary standard” refers to the monetary system of a country. There are three main types of monetary standards...
What is GDP or GNP? How are GDP and GNP related? What is Nominal GDP and Real GDP? A short overview of these important economic concepts.
This article takes an academic approach to answering frequently asked questions about the Great Recession of 2007-2008.
There are three types of equilibrium, namely stable, neutral and unstable equilibrium. Prof. Schumpeter explains the three positions with a simple illustration of a ball placed in three different...
We've all heard the terms Supply & Demand before, but how much do you really know about one of the fundamental principals of economics? In this article, we'll cover the basics everyone needs to know.
Linen fibers are natural fibers that have a long history. In this article, you will know a brief history of flax, the microstructure of flax fiber, physical and chemical properties, flax industry, its uses and how to care for linen fabrics.
The law of returns to scale examines the relationship between output and the scale of inputs in the long-run, when all the inputs are increased in the same proportion.
Meaning and assumptions of consumer's surplus - Measurement of consumer's surplus: The law of diminishing marginal utility approach and the indifference curve approach.
Poverty is now accepted as a situation of multidimensional deprivation. The multidimensional poverty index (MPI) offers a unique measure of shortages in the lives of the poor.
The concept of opportunity cost occupies an important place in economic theory. The concept was first developed by Wieser. The opportunity cost of anything is the alternative that has been foregone...
This case examine the implications of the merger of Pepsi Co. and Quaker Oats Company for the rivalry between Coca-Cola Co. and PepsiCo, and for value creation by each firm.
All these economic books are international best sellers. They are representative of views endorsed by millions of people, and deal with austerity, capitalism, inequality and the super-rich.
Indifference curve analysis possesses certain distinguishable and unquestionable merits over Marshall’s cardinal utility analysis. Following are the undeniable merits of indifference curve analysis.
Income Effect on Consumer's Equilibrium - Substitution Effect on Consumer's Equilibrium - Price Effect on Consumer's Equilibrium - Derivation of Demand Curve from Price Consumption Curve
Many products that used to last a lifetime now break down in a few years forcing consumers to buy a replacement.
Some important economic concepts such as law of demand, consumer's surplus, elasticity of demand and law of substitution are based on the law of diminishing marginal utility.
Want to know who are the best business men and women of India. Then here is the list of Indian entrepreneurs for you to get inspired from their stories.
How does the Federal Reserve use interest rates to control the economy, and how do these changing interest rates affect you as a consumer or business owner?
This article explains the law of diminishing marginal utility with the help of a schedule and diagram. It also states the assumptions and exceptions of the law of diminishing marginal utility.
Law of demand states that while other things do not change, there is an inverse relationship between the price of a commodity and the quantity demanded at a specified time. In simple terms, people...
In the process of business expansion, producers may benefit from the emergence of economies of scale. These economies are broadly classified into two types: Internal Economies and External Economies.
Winemaking is a multifaceted and delicate process that has transcended centuries and is enjoyed by many cultures. However, the intricate method of creating wine has both numerous positive and negative environmental, social as well as economical impacts.
What is "the fetishism of commodities"? If, as Marx posits, the social relations within capitalist society exist between commodities and not between workers, then do workers even have socail relations at all? If so, in what context? Marx asks, is a commodity valuable because human labour was expended to produce it or because it is intrinsically valuable?
The law of supply states the functional relationship between price and the quantity offered for sale. At higher prices, more sellers are interested in producing the product, and each existing seller..
Industrialization plays a vital role in the economic development of underdeveloped countries. The developed countries of the world broke the vicious circle of poverty through industrialization.
An indifference curve, since it represents level of satisfaction, is a subjective phenomenon. Each person has a unique set of indifference curves. However, all indifference curves possess some...
What is the best way to stimulate an economy? Is it best to lower taxes or increase wages, both or neither? These are questions which both Democrat and Republican politicians debate in the course of attempting to determine the best path for growing...
Giffen goods explanation - Income and substitution effects on Giffen goods - Income and substitution effects on normal goods - Income and substitution effects on inferior goods
The market period is a very short period in which the supply of a commodity is fixed. It is the variations in demand that determine the price in such a market period...
This article analyses the advantages and disadvantages of a firm’s international expansion and make some concluding recommendations.
The law of equi-marginal utility or Gossen's second law explains how a consumer allocates his income among various commodities for getting maximum satisfaction.
The central bank is the agency to formulate and implement the monetary policy. The commercial banks are the financial intermediaries between savers and investors as both are supply side of the money market.