Category: Economics
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Advantages of Market Economy
Advantages of Market Economy Market Economy is the economy in which the producers and consumers make majority of the important decisions. There are many businesses operating in the Market Economy so it is likely that the consumer is going to have choice. Businesses operate with the primary motive of earning more profit and one of…
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Mixed Economy
Mixed Economy Mixed Economy tends to eliminate the drawbacks of Market and Planned Economy and combines the benefits of both. Buyers and sellers are given the liberty to produce the goods which they deem to believe as useful, but on the other hand government also keeps a close eye on economic activity and makes sure…
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Planned Economy
Planned Economy Planned Economy is an economy in which the government decides what needs to be produced and in what quantities. In the Planned Economy government usually provides the good which would have not been provided under the Market Economy.
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Market Economy
Market Economy Market Economy is a consumer driven economy. In other words the price mechanism determines what needs to be produced and in what quantities. The consumer decides what needs to be produced and the government does minimum interference in this economy.
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3 Economic Systems
3 Economic Systems There are 3 Economic systems which are operating in the world. The Economic systems which are prevailing in the society are Market, Planned and Mixed economies.
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What is Production Possibility Curve?
What is Production Possibility Curve? Production Possibility Curve shows the different combinations of two products which can be produced with the given resources. It also depicts the maximum output which can be achieved with the existing resources. If resources are shifted from one product to another there would be a change in production for both…
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What does PPC stand for?
What does PPC stand for? PPC stands for Production Possibility Curve. There are many names Economists give to the PPC. Some name it opportunity cost curve and some call it production possibility curve.
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Economic and Free goods
Economic and Free goods In today’s world it can be difficult to distinguish between Economic and Free goods. Water is a perfect example of something which can be considered both Economic and Free good. Water is not a man made product and we do not have to employ any resources so it would be considered…
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Free Goods
Free Goods Free goods are the goods for which we do not have to employ resources to produce it. In simple words we can say that we do not have to employ any resources to produce them and no expence is incurred to produce them. Free goods are provided by the nature.
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Economic Goods
Economic Goods Economics goods are the goods for which we have to employ resources to produce it. In simple words we can say that we have to employ factors of production to produce them and an expense is incurred in order to produce them. Economic goods are man made goods.