WELCOME I  heartily welcome you to read about the various factors which are responsible to save income and to determine the level of aggregate consumption. It is Macro Economics so, all the concepts are considered as aggregate (Total) values.  Consumption function The concept of consumption function is introduced by J.M Keynes a British economist. That's why it is also called as "Keynesian consumption function". according to Keynes it is useful to find out the aggregate values of consumption and expenditure in an economy and to predict based on available data.  Consumption function refers to the functional relationship between total consumption and the total national income when other things remains constant. This can be expressed as a mathematical formula: C = f(Y) where C refers to the total consumption. f refers to the functional relationship  Y refers to the income or disposable income. classification of determinant factors J.M Keynes classified the determinants of co

Syllabus MACRO ECONOMICS  Module– I : Introduction Macro Economics – Concept of Circular Flow of Incomes –National Income Analysis: Concepts  and Components – Methods of Measurement –Difficulties and Limitations in the Estimation of  National Income. Module– II : Theories of Income and Employment Keynesian Theory of Income and Employment: Effective Demand – Consumption Function:  Average Propensity to Consume (APC) and Marginal Propensity to Consume (MPC) – Factors  Determining Consumption Function – Savings Function: Average Propensity to Save and  Marginal Propensity to Save – Concepts of Multiplier and Accelerator  Module– III : Investment & Theories of Interest Rate Capital and Investment: Types of Investment, Determinants of Level of Investment – Marginal  Efficiency of Capital and Marginal Efficiency of Investment, Neo-Classical and Keynesian  Theories of Interest . Module – IV : Supply of Money & Demand for Money Functions and Classification of Money – Money Supply – Mea

WELCOME TO YOU I heartily welcome you to read this post. these are concepts related to employment and finance (budget). ------------------------------ Classical economics The term "Classical Economics" refers to a part in economics (school of thought of economics) that originated in the late 18th and early 19th centuries. the main principles of classical economists (classism) are: Personal liberty private property freedom of private enterprises. Laissez-Faire (les-ay-fair) Classical economists believed that the role of government in economic activities should be very less that is nominal. They argued that the free play of economic forces leads to proper and full utilisation of economic resources including labour. in any circumstances the state shall not enter in the matters of economic activities and market. Laissez-faire is a policy of non-intervention in economic matters.  Say's law of market JB Say, A French economist introduced this law of market. It is based on the c

WELCOME TO YOU I heartily welcome you to read this post on few important concepts related to "Statistics" in economics.  ------------------------------ Introduction to the reader Namaste, before understanding the concepts in statistics (stats) let us understand the Meaning, need, requirement and importance of statistics in Economics.  Statistics The word statistics has been derived from the Latin word "Status" and Italian word "Statista" which means a Political State.  The word "statistics" is used in two ways: Singular plural. Singular Singular means collection, classification and presentation of the data.  Plural Plural sense statistics means the data. It refers to all the statistics as a single data. Importance of statistics in economics Statistical data is useful to understand the economic problems.  With the help of statistics we can analyse the nature of many economic problems like poverty, unemployment, etc.  The increasing importance of s

WELCOME TO YOU I heartily welcome you to read this post on concepts of "National Income". It helps to understand why few countries achieve more national income and vice versa. National income of a country determines the standards of the people and quality of resources. It is the net result of all economic activities during an year. It is one of the main indicator to measure the Economic development of a country. ------------------------------ National income National income is the total (Aggregate) value of all final goods and services which are produce in a country during in a financial year. It measures in terms of money value (monetary value) Per capita income when we divide total income with total population in the country, we obtain/get the value of per capita income.  Per capita income = national income / total population. It indicates the living standards of the people in a country (Economy). Disposable income Disposable income = personal income-personal taxes. i.e. DI

WELCOME TO YOU I heartily welcome you to read few concepts related to "Distribution", "Rent", interest, etc. Distribution is one of the main key activity in Economics. ------------------------------ Contract rent Contract rent is the higher charge of rent for using a durable good. It doesn't include which we pay monthly such as the Electricity bill because electricity is not durable. Example, Room rent   (example from our daily life) Rent for using any of the  durable assets or material like vehicles. It is a periodic rent (monthly) for using any material or good. It may be annually (per year) or even for short period less than a day. for example, rent charged for cycling for few hours. It always based on the agreements. Economic rent It is also called as Pure rent. It refers to the payment for using productivity of the land (Natural resources) as a reward. It is the pure rent after deducting or subtracting the elements like interest, profit, wages, depreciation

WELCOME TO YOU I Heartily welcome you to read few important points which I've noted from the webinar. ------------------------------ Research and innovation Innovation refers to implementing new ideas for the development of industry and other fields like agriculture which aims at growth. It also refers to ideas for improving existing ones. Human resource (Refers to skills and abilities of a person) are result in qualitative research and education. Linking any of the subject to the matter of society leads to development of new areas in the subject. Each subject may have different goals and fields but, research is same. Concentrating on subject and digestion of matters from other books is very important which is possible only by continues acquisition of knowledge and work. Inability of the students in terms of research, new findings and exploration is the failure of the teacher. Adaptation is very important for research. (Adaptation refers to software and scientific skills) which imp

WELCOME TO YOU  I heartily welcome you to read the post on concepts related to "Market" in economics. They play a significant role in structuring economy and development. Let us read now! ------------------------------ Market Market refers to a place where the buyers and sellers meet together and transactions of buying  and selling takes place is called market. Communication Plays a vital role in the market. Transactions may be in the form of: Goods: refers to physical commodities which are manufactured in industry/firm. Services: Refers to transactions without involving money. Other Information. Local market If transaction of a particular goods takes place in a particular area, It is called as local market. The business continued with that product in that area only. Because these goods are highly perishable which means they cannot transported to long distance places. They cannot stored for long time. For example, vegetables, fruits, milk, etc.. National market When a commodi

WELCOME TO YOU I heartily welcome you to read this post on "factors of production" which is an important concept in Economics as well as business sciences. Generally it is the Part of quantitative research analysis but      indirectly qualitative analysis also.  ------------------------------ Production As we've written in production concepts, It is the process of converting inputs to output which has utility to satisfy human wants. Production of a good is not possible with only a person. The process has to involve both natural resources and manmade factors. Production is a main concept in economics. It is the question arises what to create/produce, when and time.  Factors of production Now we know that it is not possible to produce a commodity/good with only 1 involvement. It has to engage with number of cycles and have to move different hands to reach the hands of consumer. Factor of production refers to the resources or factors which participate in the process of produ