Micro Economics
- Basic Concepts of Economics
- Consumer Behaviour
- Demand & Supply
- Production, Costs, Revenue
- Market Structure
- Pricing & Distribution
Welfare Definition
Economics has evolved over centuries, shaped by the contributions of various economists. One influential perspective is the welfare definition, introduced by Alfred Marshall and supported by other economists like A.C. Pigou, Adrian Cannon, and William Beveridge. This school of thought, known as the neo-traditional school, prioritizes human welfare over wealth. This blog explores the detailed nuances of Marshall’s welfare definition, its underlying principles, and the criticisms it has faced.
The Definitions of Economics
Explore the definitions of economics and discover the diverse perspectives that shape this evolving field of study.
Utility and Its Features
Utility is a key concept in economics, representing the capacity of goods and services to fulfill human needs or desires. While it may seem straightforward, utility has intricate implications when it comes to understanding consumer behavior and demand. This blog explores utility in detail, its relationship with satisfaction, and its distinctive characteristics.
The Factors that Determine Demand
Demand, a fundamental concept in economics, refers to the quantity of a good or service consumers are willing and able to purchase at a given price. However, demand is not static—it is influenced by various factors, ranging from consumer preferences to government policies. Let’s dive into the key factors that determine demand and explore how they shape market dynamics.
Factors of Production
The production process is a cornerstone of economic activity, driven by key components known as factors of production of The Pillars of Economic Activity These factors are indispensable in the creation of goods and services. Traditionally categorized as Land, Labor, Capital, and Organization, they play a pivotal role in any production system. Let’s delve deeper into these foundational elements.
The Role of Time in Price Determination
Renowned economist Alfred Marshall emphasized the critical role of time in determining prices. He introduced the concept of “periods,” during which the forces of demand and supply interact to establish the equilibrium price. Depending on the period in question, either demand or supply can exert a stronger influence on price determination.
Understanding Wage Rate Differences
Wage rates are far from uniform across different regions, occupations, and time periods. Even within the same region, wage disparities exist between various professions. The reasons for these differences are multifaceted and rooted in the nature of work, regional factors, and changing economic conditions. Let’s delve into the key factors influencing wage rate variations.