Found 235 Articles for Economics

What is Intertemporal Choice in Economics? Intertemporal choices refer to present choices that may affect what becomes available in the future. In other words, it shows how current decisions impact the availability of options in the future. Therefore, it becomes very desirable to understand the limits of current consumption because if the availability of resources gets too scarce in the future, it may create problems in life. Intertemporal choices are often needed to be made in life. For example, people’s choices of current savings and investments are intertemporal choices. People often need to decide how much to spend now ... Read More

What is the Law of Diminishing Marginal Returns? The law of diminishing marginal returns states that after an optimal amount of capacity increasing the inputs results in a decreased amount of outputs. In other words, after a critical point of increase, the outputs start to decrease for every unit of input invested in a production system. Although additional input after the optimum level decreases the output, the law does not imply this directly. For the law of diminishing returns to hold good, all other factors of the system must remain constant. The law is also known as the Law of ... Read More

Economic Utility and its Features We know that utility is related to satisfaction. Economic utility refers to a good or service's ability to satisfy consumers' needs or wants. As goods and services have different amounts of need, the economic utility of goods and services differ from one another. The economic utility is directly related to market demand. The goods that have higher economic utility are demanded more by consumers, while a good that has low economic utility will be asked for less by consumers. As the economic utility is dependent on consumer demand, some goods may not have any ... Read More

What is the Law of Diminishing Marginal Utility (Gossen’s First Law)? The law of diminishing marginal utility states that the utility derived from each additional good or service is less than the previous consumption of the good or service. In other words, the satisfaction gained from additional consumption goes on decreasing with each additional consumption of the same good. Unlike total utility, the marginal utility may attain the value of zero or a negative amount when the utility becomes completely unfavorable for the consumer. This is an outcome of continuous consumption of a good. It implies that satisfaction is the ... Read More

What is Total Utility? Total utility is the amount of utility or satisfaction derived after consuming a specific good or service. It is an aggregate amount expressed by the unit utils. Total utility is directly linked with consumer behavior in a specific market. The more the amount of total utility, the more will be the demand for the product in the market. In this manner, total utility is a precursor of the demand-supply chain in marketing. There are multiple tools available in economics using which economists can derive the total utility of consumption of a product. Thereby, the economists ... Read More

What is Total Utility in Economics? Total utility refers to the aggregate amount of fulfilment or satisfaction received from the consumption of a specific good or service. There is another form of utility known as a marginal utility which is the satisfaction derived from consuming one additional good or service. In economics, total utility is often expressed as the quantifiable summation of happiness or satisfaction obtained from consuming multiple products or services. It is part of consumer behavior in a given market. There are special calculations involved in determining the total utility of a good or service. Total utility is ... Read More

What is Rational Consumer Choice? Rational choice is a school of thought based on the assumption that consumer choices are made in sync with the personal preferences of human beings. It helps economists understand the behavior of society via personal actions as explained in rationality. In rational consumer choice school, the choices are consistent because they are made depending on personal preferences. In rational choice theory, the school that is based on rational consumption, agents are illustrated by their non-changing preferences over all conceivable global results. Agents are termed rational if their rationality is complete and ordered. By completeness, it ... Read More

What is Consumer Choice? Consumer choice is the choice of a consumer to buy a product or not. Usually, consumption or the behavior to buy products increase with increasing income. Moreover, it also depends on the happiness the consumer derives out of the product he/she buys. In other words, a consumer will choose to buy a product if his budget exceeds the price of the product. Typically, when incomes increase, the budgets for consumption increase automatically. However, utility or the satisfaction derived from buying a product does not necessarily increase with increasing incomes. In fact, the utility may be related ... Read More

Introduction Liabilities that are contingent on future events are known as contingent liabilities. When it is possible to estimate their magnitude, such obligations are documented. If it doesn't satisfy both requirements, it might or might not be reported in a footnote. Examples of frequent contingent liabilities include product guarantees, open inquiries, and future legal actions. The meaning of contingent liabilities also refers to the fact that they vary depending on the sum estimated and the possibility that they will appear in the future. The financial statement's readers are given enough information according to the accounting regulations.What are Contingent Liabilities? ... Read More

Do you know, which subject is considered as evergreen subject, it is Economics, the reason as to why it is considered as evergreen subject is because of its utility and huge demand in the job markets. If you have completed a degree in Economics, then you have more number of chances getting employed. As per study, it has been found that nearing to 65% of the individuals who have completed their graduation course in Economics’ usually get employed, within six months except one in five opt to study further.There are numerous job options available to people who have completed their ... Read More