Found 235 Articles for Economics

Introduction In simple words, Balance of Payments is a record of all the transactions between two economies in a period like a year or so. Now let us look into how an economy can do transactions with the rest of the world. There are two main accounts in Balance of Payments, one is the current account, and another one is the capital account. The formula to calculate the Balance of Payments (BoP) is - BoP = Current Account + Financial Account + Capital Account + Balancing Item Current Account The current account keeps all the records of imports and ... Read More

Introduction People need to exchange one thing for another to live life. For example, the barter system allowed people to exchange one thing for another at a certain rate. However, there were many drawbacks to the barter system. There was hardly any specific measure and the exchange rates were hard to set. That is why money was introduced as a medium of exchange to buy goods. Economic Definition of Money Money is a medium of economic exchange, and it is a commodity that is accepted by all. If we look at it, it is just a piece of paper, ... Read More

Introduction Sometimes, some types of consumption cannot be avoided because they are the needs, not wants. People often have to make consumptions that are needed for living and they do so without considering income. Such consumptions are always in demand whether the availability is enough or not. Definition: Autonomous Consumption Autonomous consumptions are consumptions that must be made irrespective of income levels. These type of consumptions are extremely necessary for life and they must be consumed by borrowing money or spending money from savings. For example, food and energy must be consumed even if the income of a person is ... Read More

Introduction Consumption patterns of individuals differ according to income. This is natural because when people have more income, their disposable income rises. Therefore, the consumers who earn more tend to make more purchases. Such incomes increase production and demand in a market. Definition: Induced Consumption Induced consumption is the consumption made with disposable income. Usually, when people have more disposable income, they spend more on a variety of items that are not usually necessary for a living. The induced consumption starts when people start to gain disposable income. So, when disposable income is nil, induced consumption is at zero. ... Read More

Introduction A recession refers to the weaker conditions of economies due to various reasons. The economies depend on markets to run well. When the condition of the markets becomes unhealthy, there are chances for economies to collapse. This is what actually happens during a recession. This can happen worldwide as witnessed during the great recession in 2008. What is a Global Recession? A global recession refers to the economic downturn that affects all the nations of the world. It is usually observed that when the economy of a country becomes too fragile, the effect is transmitted to other ... Read More

Introduction Every country has its wings that control its monetary and economic affairs of the country. To control and check the financial, monetary, and economic affairs, these organizations play an important role. In India, the Reserve Bank of India is such an authority. What is the Reserve Bank of India? Established by the British Raj in 1935, the Reserve Bank of India is the chief banking and regulation authority that regulates the Indian banking systems. The RBI is also responsible for monitoring the economy and providing support to banks in times of economic downturn. There are some specialized ... Read More

Introduction Attrition or resigning from jobs is a common phenomenon. People change or leave jobs for many reasons. But, it happens within a limit. Most workers prefer to stay in the same company according to traditional standards. However, in the case of the great resignation, people started to resign in huge numbers. Here’s more about the movement. What do you understand by the Great Resignation Movement? The great resignation is an ongoing process of attrition en masse that started in early 2021. Many economists believe that the primary reason for the great resignation is the Covid 19 pandemic as ... Read More

The economic utility is a term used to describe the economic disparities among people. These disparities may exist in wealth or income. Let us learn in this tutorial more about the concept of economic inequality, its types, and causes. Introduction All people in the world don’t have equal amounts of wealth and their incomes also vary widely. As a result, the gap between rich and poor widens. This leads to various forms of economic disparity in society. Knowing the reasons and finding solutions to economic inequality is that is why important. What is Economic Inequality? The economic utility is a ... Read More

Introduction The labor in an economy can be of various natures depending on the type. In a knowledge economy, the knowledge workers have a unique nature of labor. Knowing the types of labor and the skills required for obtaining a job in a knowledge economy is important because the future of economies lies in the knowledge domain. What is a Knowledge Worker? Knowledge workers are employees who have to think for a living. They differ from information, skilled, and task workers and they need to strategize work activities and plan the course of action to complete the tasks. Task workers, ... Read More

Introduction Knowledge or intellectual assets can be a boon for economies. As the world is getting technologically savvier, the use of intellectual capital in shaping the economies are growing. In such circumstances, the idea of a knowledge economy can be an important source of wisdom. Definition: Knowledge Economy A knowledge economy is a type of economy that depends largely on intellectual capital, and scientific developments and research play a key role in it. It is more prevalent in highly-developed nations, and a large part of consumption and production in it depends on intangible assets. These intangible assets may include ... Read More