Theory of Consumer Behaviour
Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions. Utility is want satisfying power of a commodity. There are two types:- • Total […]
Introduction to Microeconomics vs Macroeconomics
Allocation of resources:- (i) What to produce and how much to produce? (ii) How to produce? (iii) For whom to produce? What to produce: – An economy have unlimited wants and limited means having alternative use. Economy can’t produce all type of goods like consumer goods, producer goods etc. So, Economy has to make a choice what type […]
Consumer Expenditure Survey
Govt unveils package to spur economic growth
Finance minister Nirmala Sitharaman has announced measures to revive growth, boost consumption and uplift investor and consumer sentiment. key announcements: Investors: Enhanced surcharge on FPIs stands withdrawn. Surcharge on domestic investors in equity markets also withdrawn. Aadhaar-based KYC for opening demat accounts and investment in mutual funds. Govt working to bring offshore rupee market to domestic market. Govt to consult with RBI to […]
Indian economy downturn
State of the economy: August 2019 The automobile industry, seen as a bellwether of activity in the post-liberalisation years is in crisis as automakers, parts manufacturers and dealers laid off about 350,000 workers within 4 months, with more job cuts likely. Reflection of falling demand from higher income groups But, Parle Products, once the world’s […]
Cashless economy
Nearly two years after demonetization, about 99.3% of the notes sucked out of circulation has been returned. Outcomes of demonetization: Over the last two years, at least three of major claims of demonetization have collapsed. First, it was supposed to flush out black money and end corruption. The government predicted that Rs 3 lakh crore in […]
New GDP series
New GDP numbers There are variations in the ways to calculate GDP and it is the introduction of these new calculations that has caused a spike in India’s recent GDP growth rate, leading to quite a lot of confusion and debate. Earlier, India’s GDP growth rate for the year ending in March 2014 was marked […]
National Income and prices
GOODS AND PRICES One implicit assumption in all this discussion is that the prices of goods and services do not change during the period of our study. If prices change, then there may be difficulties in comparing GDPs. If we measure the GDP of a country in two consecutive years and see that the figure […]
National income measures
National income measures Gross Domestic Product measures the aggregate production of final goods and services taking place within the domestic economy during a year. But the whole of it may not accrue to the citizens of the country. For example, a citizen of India working in Saudi Arabia may be earning her wage and it […]
Income determination and circular flow of income
Income determination The basic objective of macroeconomics is to develop theoretical tools, called models, which attempt to provide theoretical explanation to questions such as what causes periods of slow growth or recessions in the economy, or increment in the price level, or a rise in unemployment. It is difficult to account for all the variables […]