‘The sum of expenditures of individuals, firms, governments and foreigners gives the expenditure calculated GDP.’ It involves...
Month: September 2022
‘The sum of rent, salary, interest and profit gives the lion share of the income -calculated GNP’...
“The sum of values of goods and services created in the economy gives the output calculated GDP.”...
Availability of natural resources: A country with abundance of natural resources will experience increase in national income...
Wages and Salary are rewards for labour’s services. They are amount of money paid to labour for...
Introduction Unemployment exists if the number of people who are willing to work and seeking jobs exceeds...
Employment It is an act of giving jobs to people by an institution (company) in return for...
Introduction Demand for labour is a derived demand. Labour is not needed for his own sake but...
Definition It is the total number of people (members of labour force) who make their services available...
Definition of Market A market is a point of contact, place or any means of communication whereby...
Investment may be defined as expenditure on physical assets which are not for immediate consumption but for...
Cost of Living It is the total amount of money which a household (a consumer or an...
National Income Accounting refers to “Measurement of National Income”. It is the compilation of all incomes earned...
The following are some of the important conditions under which a monopolist operates. He is faced with...
It is a market structure with many firms which produce heterogeneous products (branded goods) that are sold...
Price discrimination (PO) occurs when units of the same product are sold at different prices not on...
A Monopoly is a market situation in which there is only one firm producing and selling a...
A decrease in demand If there is a decrease in demand; say from DI to D2, the...
Determination of equilibrium price and quantity in a market Equilibrium in a market Equilibrium means a state...
Change in quantity supplied A change in quantity supplied is a change that occurs as a result...
The quantity of goods supplied varies from time to time. The following are some of the factors...
The following are the major types of supply. 1) Joint supply – Goods produced together: It is...
Theory of supply, like theory of demand, is aimed explaining all important aspects of supply, especially law...
Change in quantity demanded It is a change that occurs as a result of a change in...
The following are the major factors that influence (affect) demand for a commodity. Consumer’s income: The most...
The major types of demand are outlined below: 1) Joint or Complementary demand – demand for goods...
1) Inferior Goods “Inferior goods are goods whose demands fall as income rises”. In other words, they...
Abnormal demand It is a situation in which people buy more and more goods as their prices...
It is a curve that relates different quantities of a commodity demanded to their various prices. That...
Meaning of a theory A theory is simply defined as follows:- “It is an organized body of...
Oligopoly is a market situation in which there are few producers of a commodity It is an...
It is use of goods and services that satisfy immediate human wants. It is the act of...
Saving is a part of income set aside or reserved for future use. It is a portion...
It refers to eagerness, keenness or much desire to save. It is the urge of individual to...
It is output per labour hour. That is, it is output per worker in an hour. It...
Middlemen (wholesalers and retailers) do encounter lots of problems in the course of the distribution of commodities...
The Role of Co-operatives in Distributive Trade A co-operative society is defined as a voluntary and business...
Definition of Distributive Trade This is also known as chain of distribution. It refers to the various...
An earthquake is defined as a violent tremor in the earth’s crust which sends out a series...
Capital Formation or Accumulation Capital formation or capital accumulation refers to increasing a country’s stock of real...
National or public debt refers to the debt a country owes to its citizens or other countries...
A budget may be defined as a financial statement of the total estimated revenue and the proposed...
Taxation especially direct tax can be classified according to the following systems. These are: 1) Progressive tax:...
There are two major types of tax. These are direct tax and indirect tax. Direct Tax Direct...
Incidence of taxation refers to the point at which the tax burden finally rests. The burden here...
Taxation may be defined as the act or method of imposing a compulsory levy by the government...
Government expenditure refers to total expenses incurred by public authorities at all levels of administration (local, state...
Government (or Public) revenue may be defined as the total income that accrues to all levels of...
Fiscal policy may be defined as the use of income and expenditure instruments or policies to control...
Public Finance may simply be defined as the aspect of economics which deals with government revenue and...
