Author: admin
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Utility Analysis
What is Utility Analysis? Consumers are the ones who make the majority of consumption decisions. A consumer is someone who buys goods and services to fulfil demands. He makes choices about the kinds of items to be bought to fulfil his desires. The primary goal is to maximise satisfaction from the goods and services he purchases…
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Difference between Needs and Wants
What are Needs and Wants? Human life is intricately woven with the interplay of needs and wants, forming the tapestry of our existence. Needs represent the fundamental requisites for survival and well-being, encompassing essential elements such as food, water, shelter, and clothing. These are universal constants that cut across cultural boundaries and stand as the…
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Theory of Consumer Behaviour
Consumer Behaviour is the study of individual customers, organizations, or groups’ behaviour while selecting, purchasing, using, and disposing of the goods, ideas, and services so they can meet their wants and needs. In simple terms, consumer behaviour is the study of consumers’ actions and reactions in the marketplace and the reason behind their actions. Consumer A…
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Production Possibilities Curve (PPC)
As the resources available around us are scarce, we cannot satisfy all of our needs and wants. And even if all the resources in the economy are utilized in the best possible manner, their capabilities are restricted due to scarce resources. Therefore, we are forced to make economic decisions and choose among alternate goods and…
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Opportunity Cost
What is Opportunity Cost? Opportunity cost can be defined as the potential benefit that an individual misses out on by choosing one option over another. When an individual prefers one alternative over another, then the non-absorbed profit of the latter alternative is the opportunity cost. Opportunity cost generally remains overlooked and creates a barrier for…
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Central Problems of an Economy
A number of activities happen around us in our daily life, such as activities performed in shops, offices, hospitals, etc. The collection of these organisations and institutions is known as an economy. These units allow human beings to earn and simultaneously help them to produce goods and services for their use. An economy provides living to the…
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Economic Problem & Its Causes
We all know that human wants are unlimited, but the means to satisfy these wants are limited. Therefore, all the wants cannot be fulfilled. An economic problem means the problem of making choices occurs because of the scarcity of resources. It arises because people have unlimited wants, but the means to satisfy them are limited. …
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Difference between Microeconomics and Macroeconomics
Microeconomics and macroeconomics are two branches of economics that study different aspects of the economy, but they are closely related. Microeconomics focuses on the behavior of individuals within the economy, such as households, firms, and industries. However, Macroeconomics deals with the economy as a whole. What is Microeconomics? Microeconomics is a branch of economics studying the behaviour of an individual…
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Microeconomics and Macroeconomics
Microeconomics and Macroeconomics are two branches of economics that study different aspects of the economy. Microeconomics zooms in on the decisions made by individuals and businesses, while macroeconomics zooms out to look at the broader picture of how the economy functions as a whole. What is Microeconomics? Microeconomics is a branch of economics studying the behaviour…
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Introduction to Microeconomics
Microeconomics is a branch of economics studying the behavior of an individual economic unit. Adam Smith is known as the father of economics and microeconomics. Microeconomics help in contemplating the attributes of different decision-makers in an economy like individuals, enterprises, and households. In simple terms, microeconomics help in understanding why and how different goods have different…