Microeconomics

Definition: Microeconomics is a subfield of economics which focuses on analysing the behaviour of economic agents within an economy so as to make decisions concerning the allocation of limited resources which have multiple uses. As the name suggests, it is the microscopic view of the economy, wherein the economic activity of small individual units and…

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Public Finance

Definition: Public Finance implies a branch of economics, which is concerned with government activities and the various sources of financing expenditure. Basically, it deals with government revenue, expenses, and debt, as well as its impact on the entire economy. As its name suggests, public finance is all about the management of finances of the public…

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Economies of Scale

Definition: Economies of Scale can be understood as the proportionate reduction in the cost achieved by increasing the scale of production or expansion in the size of the plant, often gauged by the quantity of output produced, wherein the per unit cost of output decreases with the increasing level of production. Therefore, when there is…

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Factors of Production

Definition: In economics, factors of production, as the name signifies are the inputs or say resources acquired by the firm to use them in the production of goods or services, so as to earn a profit. The word ‘production‘ refers to a systematic process of converting the inputs, into finished products, which can be goods…

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Supply

Definition: In economics, “Supply” implies the quantity (how much) of a commodity that the producers, manufacturers or sellers are willing and able to offer to the market at different prices during a particular period of time. Basically, supply is something that the firm offers for sale, to the target audience in the market, which may…

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Demand

Definition: The word ‘demand’ is used to imply the quantity (how much) of a given commodity or service, the consumers are willing and able to buy, in a market during the particular period of time, at any price, or at any income or at any price of related goods. Demand is not just the desire…

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Money Laundering

Definition: Money laundering can be understood as an act of concealing the identity or source of money obtained illegally, to make them appear to have obtained out of legal sources. Simply put, money laundering is the process of disguising the origin, i.e. the source from which money is received due to criminal activity, changing its…

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Economics

Definition: Economics is that branch of social science which is concerned with the study of how individuals, households, firms, industries and government take decision relating to the allocation of limited resources to productive uses, so as to derive maximum gain or satisfaction. Simply put, it is all about the choices we make concerning the use…

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Tax Evasion

Definition: Tax evasion can be understood as a tax practice, wherein the assessee, i.e. an individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), firm or body corporate, etc. intentionally attempts to avoid or reduce the payment of taxes, by using unauthorized methods or downright frauds. Both illegal non-payment or underpayment…

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Tax Planning

Definition: Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute. Put simply, it is an arrangement of an assessee’s business or financial dealings, in such a way…

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