Notes and Study material for Exams
Unveiling the True Picture: NNP at Factor Cost (NNPFC) and its Significance The Gross Domestic Product (GDP) is a widely used metric to measure a nation’s economic performance. However, GDP alone doesn’t tell the whole story. It fails to account for the depreciation of capital goods and the indirect taxes levied on production. To get … Read more
The Balance of Payments Deficit: A Comprehensive Guide The balance of payments (BOP) is a record of all economic transactions between a country and the rest of the world over a specific period, typically a quarter or a year. It essentially tracks the flow of money into and out of a country. A balance of … Read more
The Circular Flow of Income: A Vital Engine of Economic Activity The economy is a complex system, with countless transactions happening every second. To understand how this system functions, economists use models to simplify and visualize the relationships between different economic actors. One such model is the Circular Flow of Income, a fundamental concept that … Read more
ADMINISTERED PRICES INCLUDING MSP AND PROCUREMENT PRICES Historical context The emergence of agricultural Price Policy in India was in the backdrop of Food scarcity and price fluctuations provoked by drought, floods and international prices for exports and imports. This policy in general was directed towards ensuring reasonable food prices for consumers by providing food grains … Read more
Deficit Financing: A Double-Edged Sword of Economic Policy Deficit financing, a term that often evokes both hope and trepidation, refers to the practice of governments spending more than they collect in revenue, thus creating a budget deficit. This seemingly simple concept carries profound implications for a nation’s economic health, impacting everything from inflation and interest … Read more
The Phillips curve is a relationship between the unemployment rate and the rate of InflationInflation in an economy. It was first proposed by A.W. Phillips in 1958, and it has been a subject of much debate and controversy ever since. The Phillips curve suggests that there is a trade-off between inflation and unemployment. In other … Read more
Understanding the Pulse of the Economy: A Deep Dive into National Income Accounting National income accounting is the backbone of economic analysis, providing a comprehensive picture of a nation’s economic performance. It’s the language economists use to measure and track the flow of goods and services, income, and spending within an economy. This article delves … Read more
Unlocking the Power of Net Factor Income: A Comprehensive Guide Net factor income, a crucial component of national income accounting, often remains shrouded in mystery for many. This article aims to shed light on this essential economic concept, exploring its definition, calculation, significance, and its impact on various aspects of economic analysis. Defining Net Factor … Read more
NATIONAL INCOME The study of National Income is important because of the following reasons: To see the Economic Development of the country. To assess the developmental objectives. To know the contribution of the various sectors to National Income. Internationally some countries are wealthy, some countries are not wealthy and some countries are in-between. Under such … Read more
The Persistent Shadow: Understanding and Addressing Structural Unemployment Structural unemployment, a persistent and often overlooked form of joblessness, poses a significant challenge to economic growth and social well-being. Unlike cyclical unemployment, which fluctuates with the business cycle, structural unemployment stems from a mismatch between the skills and qualifications of the workforce and the demands of … Read more