Article Categories
- All Categories
-
Data Structure
-
Networking
-
RDBMS
-
Operating System
-
Java
-
MS Excel
-
iOS
-
HTML
-
CSS
-
Android
-
Python
-
C Programming
-
C++
-
C#
-
MongoDB
-
MySQL
-
Javascript
-
PHP
General Economics Articles
Found 94 articles
Net National Product
What is Net National Product (NNP)? The net national product refers to the total market value of finished goods and services that are produced by both domestic and foreign citizens of a nation. The calculation is usually done for a term of one year. So, when we talk about NNP we observe the market value of finished goods and services. The value of NNP can be obtained by subtracting the value of depreciation from the Gross National Product of a nation. NNP considers all products produced by the citizens of a country irrespective of their location. Therefore, NNP is a ...
Read MoreLong Term Liabilities
Introduction Liabilities are obligations of a company that is payable within a certain time period. Depending on the nature and time period, liabilities are divided into three types. They are – Current liabilities or short-term liabilities Long-term liabilities Contingent liabilities. Current liabilities or short-term liabilities are payable within the same business cycle or the operating cycle of a business. Long-term liabilities are payable within a period of more than a year. Then, there are contingent liabilities that have not occurred yet and depend on certain events for getting started. What are Long-Term Liabilities? Long-term liabilities are important ...
Read MoreManaged Floating Exchange Rate
Introduction In order to understand what a floating exchange rate is, one must first understand what an exchange rate means. The exchange rate of a currency is the rate of exchange of the currency against foreign currencies (usually, it is compared with US Dollars). The exchange rate regime is adopted by the Central Bank of India or the Reserve Bank. The idea of an exchange rate is to ideate, establish, and operate a functional rate of exchange against foreign currencies. This is also known as the forex rate. Let us see first what is depreciation and appreciation of currencies in ...
Read MoreMarginal Product Formula
Introduction Marginal product formula helps businesses predict the demand and thereby produce just enough products according to market demand. Businesses are concerned with the market demand and want to keep production in sync with the market demand. The marginal product formula helps them to take production decisions wisely. Knowing the marginal product helps businesses keep production at a high while costs at a low level. What is the Marginal Product Formula? The marginal product formula determines what happens to overall production when one factor of production is changed. These factors may be anything that is directly related to production, such ...
Read MoreMarginal Revenue and Price Elasticity of Demand
What is Price Elasticity of Demand? Price elasticity of demand shows what happens to price when the demand for a product changes. It is obvious that demand and prices are related to each other. When the price increases, usually, the demand for the product goes down. Alternatively, when the price of demand for a product goes up, the price shall come down. This means that price and demand have an inverse relationship. When there is a rise in one of the factors, the other factor goes down. When this inverse relationship holds good, the product is said to have price ...
Read MoreMarginal Revenue
What is Marginal Revenue? The increased revenue obtained from an additional unit’s sale of a product is called marginal revenue. The word marginal always expresses something extra; so in the case of revenue, it shows the extra revenue generated. Marginal revenue follows the law of diminishing returns. According to the law, the output slows down with a gradual increase in inputs. In the case of a perfectly competitive business, marginal revenue means to continue to produce output up to the point when marginal revenue equals the marginal cost. Example Suppose company ABC produces pens at the rate of Rs ...
Read MoreMarket Demand Curve is the Average Revenue Curve
What is a Demand Curve? The demand curve is a graph that shows the relationship between the price of and the demand for a commodity in the market. The price of the good is usually shown on Y-axis while the demand for the product is placed on the X-axis. This price-quantity relationship can be shown for both individual customers and the markets. When the graph is plotted for the individuals it is called an individual demand curve while when the graph depicts the market condition it is called a market demand curve. Demand curves usually slope downwards because, with ...
Read MoreTypes of Market Economies
Introduction: What is a Market Economy? A market economy is a type of economy where demand and supply control the marketplace. In a market economy, there is minimal government intervention whereas the price and quantity of goods are determined by the demand and supply of products in the market. A market economy encourages entrepreneurship and drives competition and innovation in the economic system which leads to consumer satisfaction and production efficiency. Market economies are also known as free markets where government intervention is minimal to moderate. Businesses in a free market are free to take decisions regarding the price ...
Read MoreRevaluation of Assets and Reassessment of Liabilities
Introduction Business organizations, particularly partnership businesses where partners retire or new partners are introduced need to revalue the assets and liabilities from time to time. Business organizations need to revalue their assets and reassess their liabilities from time to time because, with the passage of time, the values of assets and liabilities may change. This is particularly the case in partnership businesses where partners retire or new partners are introduced. Whenever the profit-sharing ratio in a partnership firm changes, the firm needs to value its assets and reassess the liabilities to remain up to date in terms of the current ...
Read MoreRole and Importance of Small-Scale Industries
Introduction Small-scale industries play a very important role in developing the economy of a nation. The small-scale industry in India generates employment, reducing poverty and unemployment which are considered social evils. The small-scale industry is responsible for the rural and urban growth of the economy. The small-scale industries also play a key role in increasing manufacturing and infrastructure which leads to further development of the economy. Moreover, small- scale industries help the economy grow without producing pollution and help reduce slum areas by providing jobs to the slum residents. Therefore, we can say that small- scale industries are largely responsible ...
Read More