Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
the budget line and its economic interpretationthe indifference curve shows us consumer preferences but it does not show us the situation in the
properties of indifference curves an indifference curve is usually convex to the origin indifference curves slope downwards from left to right a set
indifference curve analysisin the 1930s a group of economists including sir john hicks and sir roy allen came to believe that cardinal measurement of
marginal utilitythe extra utility derived from the consumption of one more unit of a good the consumption of all other goods remaining unchangedthe
utilityutility is the amount of satisfaction derived from the consumption of a commodity or service at a particular time utility is not inherent
theory of consumer behaviourthrough the study of theory of consumer behaviour we can be able to explain why consumers buy more at a lower price than
factors influencing demand for a productthese are broadly divided into factors determining household demand and factors affecting market
individual and market demand schedulethe plan of the possible quantities that will be demanded at different prices by an individual is called
the firmthe unit that uses factors of production to produce commodities then it sells either to other firms to household or to central authorities
householdthis refers to all the people who live under one roof and who make or are subject to others making for them joint financial decisions the
economics for accountantsa few teachers and some students have questioned the rationale for including economics in a course of study for professional
disadvantages of mixed economylarge monopolies can still exist in the private sector and so competition does not really take placethere is likely to
advantages of the mixed economynecessary services are provided in a true market economy services which were not able to make profit would not be
features of this systemthe mixed economy includes elements of both market and planned economies the government operates and controls the public
the mixed economythere are no economies in the world which are entirely market or planned all will contain elements of both systemsthe degree of mix
disadvantages of the planned systemthe centrally planned economies suffer from the following limitationslack of choice consumers have little
advantages of planned systemi uses of resources central planning can lead to the full use of all the factors of production so reducing or
features of planned economythe command economies relies exclusively on the state the government will decide what is made how it is made how much
planned economyis a system where all major economic decisions are made by a government ministry or planning organisation here all questions about the
disadvantages of a free economythe free market gives rise to certain inefficiencies called market failures ie where the market system fails to
advantages of a free market systemincentive people are encouraged to work hard because opportunities exist for individuals to accumulate high
resource allocation in a free enterprisealthough there are no central committees organising the allocation of resources there is supposed to be no
features of free market systemthe features of a free market system arei ownership of means of productionindividuals
the free enterprise price systemthe free market system is where the decision about what is produced is the outcome of millions of separate
when somebody wearing muddy shoes rides a public bus he imposes a negative externality on other riders passengers get some mud rubbed off on them and