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Nature and Structure of the Economy

NATURE OF THE ECONOMY The nature of economics is related to the study of wealth or human behaviour or of scarce resources. The scope is very wide and includes the […]


Economics is a social science concerned with the production, distribution and consumption of goods and services. It studies how individuals, businesses, governments and nations make choices on allocating resources to […]

Nature of Economic Environment

Economic Environment is considered both as positive and normative science. It also covers both micro and macro aspects of different pollution problems. Positive and Normative aspects Environmental economics is an […]

Consumption Function

The consumption function, or Keynesian consumption function, is an economic formula that represents the functional relationship between total consumption and gross national income. It was introduced by British economist John […]

Modern (Keynesian) Approach

Keynesian Theory of Income and Employment (a) Criticism against Classical Theory Keynes criticised the Classical theory stating that the assumptions on which the theory is based are wrong and impractical. For […]

Theory of Full Employment and Income: Classical

Income and employment theory, a body of economic analysis concerned with the relative levels of output, employment, and prices in an economy. By defining the interrelation of these macroeconomic factors, […]

Precautions in Estimation of National Income

9 Main Precautions that must be followed in the Estimation of National Income Transfer payments are not included in estimating national income. Imputed rent of self-occupied houses are to be […]

National Income in India

National Income in India A study of the national income in India over the last 60 years, it is very much essential for attaining a clear understanding about the impact […]

Methods of Measurement National Income

There are four methods of measuring national income. Which method is to be used depends on the availability of data in a country and the purpose in hand. (1) Product […]

National Income: Concepts, Definition

National income is an uncertain term which is used interchangeably with national dividend, national output and national expenditure. On this basis, national income has been defined in a number of […]

Multiplier in 2, 3, 4 Sector

To simplify the analysis, it has been classified into a two-sector model, a three-sector model and a four-sector model. First two sectors are related to a closed economy in which […]

Circular flow in 2, 3, 4 sector

Circular Income Flow in a Two Sector Economy Real flows of resources, goods and services have been shown in Fig. 6.1. In the upper loop of this figure, the resources […]

Macro-Economic Variables

The description and forecasting of macroeconomics require statistics on macroeconomic variables. The most prominent of these variables is the GDP, inflation, interest rates, and unemployment, but there are many others. […]