• Economics Basics: Theory of Consumer Behavior

    Jul 31 • economics • 1019 Views

    Read INTRODUCTION TO ECONOMICS

    Economics Basics: Theory of Consumer Behavior

    Consumer Budget :   A consumer having fixed budget to buy a set of goods is consumer’s budget. Its exchange value of a consumer for a set of product and a particular time.
    Example: In case of Richa , her pocket money was Rs 2000 which was her monthly budget.

    Budget Set:  Set of products or bundle of products which a consumer can exchange or get under restriction of his/her budget is called Budget set.

    Example

    In case of Richa : She prioritised as follows

    1. Get her spectacles.
    2. Transportation for 30 days.
    3. Buy 2 Book.
    4. Birthday of Brother will be settled in about Rupee 500.
    5. Go for a movie with two friends.

    Other sets which Richa could have got in Rupee 2000 are as follows

    1. Get her spectacles.
    2. Transportation for 30 days.
    3. Buy 2 Book.
    4. Birthday of Brother will be settled in about Rupee 700.
    5. Go for a movie alone.

    And many more such sets according to her preference under Consumer budget of Rupee 2000.

    Rupee 2000 ≥ P1x1+p2x2+p3x3+pnxn in case of Richa

    Where p1 , p2 till pn  are set of products and x1 , x2 till xn are cost for respective product.

    Budget line:  The set of products or bundle of Products which are selected by consumers on line of Budget is called Budget line.

    In case of Richa any number of variation of Richa’s selection of products which cost exactly equals to Rupee 2000 is budget line.

    Capture

    Challenges in Budget set

    P1x1+P2x2+Pnxn > M

    Change in Budget Set

    P1x1+P2x2+Pnxn > M

    P1x1+P2x2+Pnxn < M

    Monotonic Preference

    When a consumer get satisfied with one set of product more than other set of product in terms of volume as in 1 set volume is more and other is equal then this sort of preference is known as Monotonic Preference.

    Price Ratio and slope of Budget line

    Substitution Between Goods

    Amount of goods consumer is willing to give up for another goods is substitution of goods.

    Two sets of goods

    Set 1:  (x1, x2)

    Set 2:{ (x1+Δx1) + (x2+Δx2)} where Δx1 > 0 and Δx2 <0

    Rate of substitution = Δx2/Δx1

    Diminishing rate of Substitution:  Amount of goods x1 we are using more to respective decreasing of goods x2 is rate of substitution.

    Indifference curve:  

    Capture

    Plutus Academy has contributed these notes, one of the top coaching institute for  SSC and IBPS exams.

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  • Economics Notes for Competitive Exams

    Jul 26 • SSC Exam • 3109 Views

    Introduction to Economics

    Economics is study of utilization of scarce resources to meet maximum utility.

    Example:
    Richa gets Rupee 2000 as Pocket money from her day. Resource is Rupee 2000.
    Richa wants to go to movie which costs Rupee 300.
    Richa wants to buy a book worth Rupee 400.
    Richa spectacles got broken and that will cost 500.
    Richa has planned a trip with friends which will cost Rupee 700.
    Richa brothers Birthday comes in this month and a present may cost Richa Rupee 700.
    Richa needs Rupee 300 for her monthly transportation.
    So Richa expenditure is Rupee 2900 whereas her income is Rupee 2000.
    Needs and wants which Richa will fulfill amongst all above needs is economics of Richa

    What should Richa Do? Probably Richa will priorities-

    1. Get her spectacles
    2. Transportation for 30 days
    3. Buy 2 Book
    4. Birthday of Brother will be settled in about Rupee 500
    5. Go for a movie with two friends
      This will be economics of Richa!

    Economics can be summarized as science through which-

    1. An individual understand his or her resources to maximize his well being (as he/she perceives it to be)
    2. A company uses its limited resources for profit maximization (Tangible and intangible)
    3. An industry uses its limited resources for gain of stakeholders.
    4. A country or a society uses its limited resources to meet its requirement of food, safety, growth or in short utility and may save for poor economical period.

    Economics has further been divided in two parts.

    1. Micro Economics
    2. Macro Economics

    Micro Economics

    Micro means Small
    Economics means:  study of utilization of scarce resources to meet maximum utility.

    Study of Economical process or behavior of an individual, household, company or an Industry is Micro economics, salary, and cost of Production etc.

    In case of Richa
    If laborers who manufactures Spectacles will increase their labor charges then May be Richa will have to settle for lower quality of spectacle or she will have to reduce expenditure on other things, but increase in labor cost will be part of Microeconomics; it will be under control of manufacturer till a larger extent.

    Microeconomics deals with factors like Demand , Supply , cost , Market , cost efficiency , product efficiency , distribution , supply , profit maximization , for an individual or household  a company or an industry.

    Activities at Micro Economic level affects Macroeconomic environment of a country and then it becomes out of control of any individual or household or a company or an industry and becomes part of Macroeconomic factors.

    Demand

    Demand is an economical activity where exchange value of a Product or service is agreed upon or has willingness to get agreed upon.

    We as an individual has too many needs and dreams but all those needs and dreams cannot be fulfilled because of difference in sum of cumulative exchange value of our labor to our needs or dreams.

    Everything what we need or dream about is not demand. Unless and Until, We do not have exchange value for product or services which we need or dream about, it does not become demand in terms of economics.

    Supply

    Willingness of economic agents in providing Product or services in accordance with demand to marketplace is called as Supply.
    Fundamental availability of Product or services in Market for consumer is Supply. You can also say availability at certain cost.
    Sometimes you do not have enough water to die but that’s supply.

    Who are Economic Agents?
    Individual, House hold, company, consumer, supplier etc who all can be part of economical Process are Economic agents.
    In Market Place General Theory states that When Price increases Demand decreases.

    Cost

    Exchange Value of a product which may keep flow of regeneration of product for market generally accessed in Local currency.

    In case of Richa Need was of spending Rupee 700 for brother’s birthday but demand dropped down to Rupee 500 expenditure. Supply is Products available at Rupee 500.

    Profit Maximization

    It’s an economical phenomenon for an organization or a company where Maximum Profit in short term or long term on per unit sales cost is forecasted or determined.

    Example:
    Suppose in case of Richa Buyers of Glass can only Produce 1000 glasses at Rupee 500 but demand with him is of 1200 glasses per month. These are realized by Manufacturer after Richa bought Spectacles. To start producing more than 1000 spectacles he needs to install another Unit and cost of establishing new unit is Rs Rupee 1000000.
    No what Price manufacturer should charge his consumers like Richa so that he may be able to sell 1000 glasses and create demand of 1000 glasses only.

    Central Problem in an economy

    As we know Economics is meeting maximum utility in limited Resources available, every economy faces central problem.

    1. What is produced and how much is produced?
    2. How are these being Produced?
    3. For whom these goods or services are being produced?

    Production Possibility Frontier

    As Richa was struggling to meet her utility similarly an economy on larger scale struggles to meet its utility for production of goods and services.
    Combination of possibilities of production of goods or services under influence of limited resources is Production Possibility.
    When larger economy prioritizes its production goal and targets then its Production possibility frontier.

    For example:
    As Iran sells oil and natural Gases to India in foreign exchange that is in Dollars, India has limitation of Purchasing Oil and Natural Gases. Whereas growing Indian economy needs Oil and Natural gases as primary source of Energy in all fields like-

    1. Transportation
    2. Electricity Production
    3. Cultivation

    Now government has many options or sets of options of usage of Oil and Natural gas with following combinations

    1. All O&G given to transport department (Case 1)
    2. All O&G given Electricity Production department (Case 2)
    3. All O&G given to Agricultural department (Case 6)
    4. Transport department given 10% , Electricity production: 20% and Agriculture – 70% (Case 3)
    5. Transport department given 20% , Electricity production: 20% and Agriculture – 60% (Case 4)
    6. Transport department given 40% , Electricity production: 20% and Agriculture – 40% (Case 5)
    7. 50% oil to transport 60% Gas to transport; rest may be divided among Electricity production and Agriculture equally. (case 7)
      All above cases are to meet different production possibility objective and these cases are known as Production possibility Frontier

    Organization of Economic Activities

    • Centrally Planned economy:  It’s an economic process where a product or service or resource is utilized to meet certain goal and objective of state or functionaries. Centrally Planned economy helps one set of economically activities or process over other.
      Example 1: May be during time of war government will want to use Iron ore to be used for manufacturing of artillery and arms rather than using them for manufacturing of Cars or Iron bars.
      Example 2: It becomes difficult for farmers to buy Diesel at Market price for cultivation or irrigation of land and if Land will not be cultivated then it will lead to inflation as food will not grow thus Government provides Diesel on subsidy to meet agricultural irrigation target.
    • Market Economy:  All economic activities which are governed through market. A market is free institution and it only accepts rule of Demand and supply in fare economic environment.

    In a market determined system all goods and services comes at an exchange value generally accepted in society for utility and market policies are further governed on demand and supply. Price increases, if demand increases and price goes down if demand decreases.

    Micro Economics

    Macro means Large.
    Economics means:  study of utilization of scarce resources to meet maximum utility.

    Macroeconomics is study of overall behavior of economical phenomenon or activity on a larger scale like country or global.

    It constitutes of National income, Inflation, Deflation, GDP, Employment rate, International Finance, International trade.

    In case of Richa, She actually wanted to invest Rupee 700 on gift for her brother but her Economics forced her to settle for Rupee 500! Now appreciation in Dollar cost again decreased value what Richa could get in Rupee 500 in USA than that of in India.

    Positive and Normative Economics:   As discussed in product possibility frontier that there are more than one ways of resource allocation for different industries and similarly there are more than one solution to an economic problem.

    It’s important to understand which of economic activity will meet best possible economical viability and that is Positive Economics whereas Normative economics  we try to understand long term effect of that economical decision that is whether that economical decision taken was desirable or not.

    Questions:

    1. Discuss central problem of Economics
    2. What do you mean by the production possibilities of an economy?
    3. What is production possibility frontier?
    4. Discuss the Subject matter of Economics?
    5. Distinguish Between a centrally planned economy and a market economy.
    6. What do you understand by Positive economic analysis?
    7. What do you understand by normative economic analysis?
    8. Distinguish between Microeconomics and Macroeconomics.
    9. What is Mixed economy?
    10. What is opportunity cost?

    Read More About Economy

    These notes have been provided by Plutus Academy- Best coaching institute for IBPS examinations.

     

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  • Job Prospectus In SSC Exam

    Apr 21 • economics • 657 Views

    The complete research about the Job Prospectus In SSC Exam and also about the SSC Exam.

    SSC-CGL is most imperative exam for graduates to get a prominent govt. employment in regarded offices. Through this exam, SSC selects more than 20000 graduates on regarded posts in govt. workplaces. Most likely, SSC notices comes in February and March. Anyway, it is not certain, it can take additional time too. In the wake of impending notices of SSC CGL, everybody need to experience the ill effects of the issue of rounding out occupations inclination. Everybody has generally thought regarding posts and an excessive amount of uncertainty about the occupation profile and future degree. Nobody beyond any doubt what is the employment profile of diverse officers and what the future degree is in the wake of getting officer post in regarded Govt. Office. Here, we are going to clarify employment profile of every post and also advantages and disadvantages.

    Presently, it is dependent upon you which division you need to go. It would be ideal if you read out quickly about every post before filling inclination as this methodology in irreversible. Above all else, you need to verify that which profession you need to pick; work area employment or field work. Each field has its own significance and cons.

    SSC CGL needs just 1 year hard arrangement after that everything would be in your grasp. As there are so abundantly regarded employments accessible through SSC CGL exam, so we should not stress over posting and sort of Jobs. Yet, before submitting inclination for employments amid internet filling structure, we ought to think about fundamental of every occupations and sort of occupations which we can get however this exam. Now and then, SSC offers choice to change inclination later. Anyway, it is not necessary. Along these lines, you have to pass your psyche before filling frame and finish your inclination and make a decent attempt to get ideal score for getting that post.

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  • Indian Police Service

    Indian Police Service Eligibility Criteria

    Apr 21 • UPSC Exam • 587 Views

    The research is all about the Indian Police Service that is being conducted by the UPSC i.e Union Public Service Commission.

    The IPS which is referred to as Indian Police Service which is very tough exam and conducted by the Union Public Service Commission.

    Also read

    SSC Exams Procedure

    Eligibility Criteria

    (a) Nationality – Indian

    (b) An applicant must not have achieved the age of 30 years for General Category, 36 years for Other Backward Classes class competitors and 37 years for applicants having a place with a Scheduled Caste or Scheduled Tribe.

    Best Books for UPSC EXAM  

    Part B 

    Main Examination – Optional Subjects

    Paper-I

    One of the Indian Languages to be chosen by the applicant from the 22 dialects included in the VIII th Schedule to the Constitution (Qualifying Paper) am amid the employment

    300 Marks

    Top IAS Coaching Center in New Delhi 

    Paper-II

    English (Qualifying Paper) 300 Marks

    Paper-III

    Essay 200 Marks

    Papers IV & V

    General Studies (300 Marks for every paper) = 600 Marks

    Function of Indian Police Service

    1. Everyday obligations, especially in the zones of up keep of open peace and request, wrong doing counteractive action, examination, and identification, gathering of insight, VIP security, fringe policing, route policing, sneaking, medication trafficking, financial offenses, defilement in broad daylight life, calamity administration, requirement of financial enactment, bio-differences and insurance of natural laws and so on.

    2. Driving and instructing the common and equipped police drives in all the states .

    3. Driving and instructing the Central Police Organizations like Intelligence Bureau, Central Bureau of Investigation, Border Security Force, Central Reserve Police Force, Indo-Tibetan Border Police, National Security Guard, Vigilance Organizations and so on.

    4. Serve at administrative/strategy making levels in the Ministries and Departments of Central and State governments and open area endeavors both at focus and states, and the RAW, Government of India.

    5. Needed to associate and facilitate nearly with the individuals from other All India Services and Central Civil Services furthermore with the Armed Forces.

    6. Lead/summon the power with mettle, uprightness, commitment and a solid feeling of administration to the individuals.

    7. Attempt to instill in the police compels under their summon such values and standards as would help them serve the individuals better.

    8. Instill respectability of the most astounding request, affect-ability to desires of individuals in a quick changing social and monetary milieu, regard for human rights, wide liberal point of view of law and equity, elevated expectation of polished skill, physical wellness and mental readiness.

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  • Application Procedure About SSC Exams

    Apr 21 • SSC Exam • 489 Views

    The research is all about the Application Procedure About SSC Exams.

    1. Hopeful may press “I Agree” catch after announcement once he/she finds that data supplied by him/her is in place and no adjustment is needed.

    2. When “I Agree” button is pressed, a page with Registration No. will be produced. Kindly note down enrollment number or take a print out of the page. The application is inadequate without installment , transferring of photo, and checked mark.

    3. At that point transfer an as of late taken examined photo in JPG position. The computerized size of every record must be less that 12 kb and more prominent than 4 kb and determination 100 pixel widths by 120 pixels stature.

    4. At that point transfer your examined mark in JPG form. The advanced size of every record must be less that 12 kb and more prominent than 1 kb and determination 140 pixel widths by 60 pixels tallness.

    5. Competitors who can pay application charge online however SBI net saving money or money through SBI bank challan.

    6. To pay expense in real money, applicant ought to take printout of challan created online after finish of enlistment. Applicant may go to closest SBI branch for keeping expenses following 24 hours of accommodation of online structure. If there should arise an occurrence of disconnected from the net channel, if the competitor submits frame on 24.01.2015, they may submit installment on next living up to expectations day 25.01.2015. Challan ought to be produced till 1 day prior to shutting day of the application.

    7. The individuals who need to pay online through SBI entry can go straightforwardly after accommodation of structure.

    8. After installment through logged off channel competitor ought to finish his/her Part II enlistment by picking Pay with money and tap on proceed with catch (in the wake of producing the challan) on installment page which diverts the page to fill the exchange points of interest given by bank on challan.

    9. The individuals who are exempted from payment of expense can skip steps 5 to 8.

    10. An email will be sent to your email id illuminating you that the application has been effectively enlisted. Enrollment No, email affirming enlistment and confirmation of installment of use charge ought to be held by you.

    11. Competitors are encouraged to experience the guidelines precisely before topping off the application structure.

    12. Territorial workplaces of the commission have been instructed to place insights concerning application numbers, Roll numbers and ticket number of competitors no less than one week prior to the date of the examination. They will likewise give the office of downloading of Admission Certificate (Hall Ticket) from their site. On the off chance that you don’t get the Admission Certificate inside a month of the Examination and are not able to download the Admission Certificate from the Regional site concerned, you must contact the Regional office concerned.

    13. Demand for change/rectification in any particulars in the Application Form should not be entertained under any circumstances. The Staff Selection Commission won’t be in charge of any outcomes emerging out of outfitting of wrong and fragmented points of interest in the application or exclusion to give the obliged subtle elements in the application structure.

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  • How To Prepare Notes For SSC Exam

    Apr 21 • SSC Exam • 931 Views

    The research is all about How To Prepare Notes For SSC Exam and also about some tips for SSC Exam.

    SSC as we all know referred to as Staff selection Commission, which is very tough exam, many students appear for this exam every month but few of them get selected and many of them are rejected. This process repeats every year, many students move out from their cities to take coaching for the competitive exams. Now a days, the coaching centers become the easiest way for the preparation of various competitive exams. They charge higher amount for the admission and teachers in the institute charge higher salaries, the students keep on rushing for the classes for the study material only not for the study. They only want study material, because the study material is the thing that matters you the most when you start preparing for any competitive exams.

    Divide Your Time

    The first thing is that you divide your time according to yourself, no clash of time can be seen out there. First you decide how to prepare for the exam, making of notes, then reading and writing of notes, this all is time consuming. For this you must divide your time.

    Divide Topics

    You may divide your topics easily, divide topics according to the syllabus or the topic which may carry high marks rating, cover that topic first. First you have to make small notes that is also called linear notes.

    Revise Every Topic

    The notes you make can be read by you the next day, after finishing every topic you have to ask yourself the questions as like given after every chapter which you called as FAQ’s. This will give the best result of your performance, you can understand where you stand after the test.

    Make Notes Point Wise

    You can also make your subject notes point wise, this will increase you attention towards the topic for which you want to make notes. The reader feels comfortable while reading point wise notes.

    These notes may impress you when you are doing revision in your exam time. No need to go anywhere just divide your topics and start making topic wise notes.

    Revision

    After completing notes, you may take your test by doing revision before the exams. make question paper in which you can also put long and short questions according to time, so that this will be your performance and speed time test you also called this.

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