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…

Read more

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…

Read more

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…

Read more

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…

Read more

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…

Read more

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…

Read more

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…

Read more

Gross Domestic Product (GDP)

Definition: The term GDP stands for Gross Domestic Product, is a measure of market value of all finished goods and services which are newly produced, during a particular period and that too within the domestic territory of the country. The term domestic territory signifies a different meaning, concerning national income accounting, it includes: The area…

Read more

Capitalism

Definition: Capitalism refers to an economic and political system, wherein the private individuals own and control the country’s factors of production (land, labour, capital) for making a profit. In finer terms, private property is the essence of a capitalist economy and profit works as a motivation here. Under this system, the government does not intervene…

Read more

Fiscal Policy

Definition: The Fiscal Policy implies the decisions taken by the government with respect to its revenue collection (through taxation), expenditure and other financial operations to accomplish certain national goals. The government uses its expenditure and taxation programmes to generate the desirable effects or eliminate the undesirable effects on the production, employment and national income of…

Read more