Average and Marginal Propensity to Save - APS vs MPS

Propensity to save represents relationship between saving and income. Saving depends upon the level of income. The greater the level of inco...

Explain Saving Function with Schedule and Diagram

Saving function or propensity to save shows relationship between saving and income. It is a counter part of consumption function. We can dri...

Average and Marginal Propensity to Consume - APC vs MPC

Propensity to consume represents the relationship between consumption expenditure and disposable income. This concept was introduced by Brit...

Consumption Function with Schedule and Diagram

Consumption function is the relationship between consumption expenditure and disposable income. This concept was introduced by British econo...

Difference Between Autonomous and Induced Investment

The construction of buildings, roads, dams, schools, colleges or purchase of machinery, buildings, factories, equipment, raw materials or ot...

Fiscal Policy - Meaning and Its Objectives

When government receives revenue, it has to spend. For receiving and spending this revenue, the government structures a fiscal policy which ...

Price Discrimination: Definition, Types & Examples

Price discrimination is the practice of charging different prices from different customers for the same product or service. It is ver...

The Various Concepts of National Income

National income means the total money value of all goods produced and services rendered annually in a country. There are various concepts of...

Understanding Fixed Cost and Variable Cost of Business

The total expenses incurred by any business are divided into two main categories which are fixed and variable costs. They incurred by busine...

Difference Between Balance of Trade and Balance of Payment

After World Trade Organization (WTO) which was founded in January 1, 1995, the world became a global village. Now every country freely trans...

Difference Between Micro and Macro Economics

Economics is the study of how people use limited resources to satisfy their unlimited wants.   The subject-matter of economics is divided in...

The Four Factors of Production

The factors of production are the building blocks of the economy. They are the resources or inputs that allow us to produce goods and servic...

4 Phases of Business or Trade Cycle with Graph

Business cycle refers to the fluctuations in an economy.   It illustrates the expansion and contraction in economic activities of a country ...

Different Types of Unemployment

Unemployment occurs when the labor force is not getting a job or actively seeking for a job. Unemployment exists in every country, whether i...

Law of Diminishing Returns - Increasing Cost

The law of diminishing returns is very old and fundamental principle of economics. It plays an essential role in production theory. Accordin...

Difference Between Monopoly and Monopolistic Competition

In economics, market is referred to the situation in which buyers and sellers contact with another to carry on business transactions.   On t...

Types of Markets - Perfect & Imperfect Competition

In common language, the term market is referred to the place where goods are bought and sold. But in economics, it has different meaning. In...

Law of Increasing Returns - Diminishing Cost

An increase of variable factors of production while keeping other factors constant, there is an increase of marginal output to a certain poi...

Equilibrium of Demand and Supply - Market Price

Demand and supply are the fundamental concepts of economics and they are the backbone of market economy. The price of a commodity is determi...

Price, Income and Cross Elasticity of Demand

Elasticity is the degree of responsiveness of one variable to a change in another variable. In economics, elasticity of demand refers to a c...