by Marjan Arbab | Mar 18, 2014 | Development Economics, Economics, Macroeconomics, Microeconomics, Production
A shot summary of Malthus Food Crisis: Thomas Malthus (1766-1834) published An essay on the Principle of Population which was considered to be the most influential book of its era. Where Matlhus has its central point over the law of diminishing Returns. A law that... by Marjan Arbab | Mar 8, 2014 | Economics, Microeconomics, Production
A production function indicates the highest output Y that a firm can produce for specific combination of input. We have many factors of production used as inputs but for simplicity we will focus only on labor and capital as a factor of production. Keeping this... by Marjan Arbab | Mar 7, 2014 | Microeconomics
Now we have demand side of the market and the supply side. From the word supply we do understand very easily that we are going to discuss about the or examine the behavior of Producers. We will see how firms can produce efficiently and how their costs change with the... by Marjan Arbab | Feb 28, 2014 | Microeconomics
Much of what basic microeconomics discusses is that a demand for a good is independent of somebody elses demand for that same good. For Example, Adam’s demand for a new car depends on Adam’s tastes and income, the price of the car and perhaps the price of other... by Marjan Arbab | Feb 28, 2014 | Microeconomics
A fall in the price of a Good has two effects: Consumers will buy more of a good that is cheaper and less of the good which has become expensive. This consequence to a change in the price of a relative good is called the Substitution effect. Secondly When a good... by Marjan Arbab | Jan 21, 2014 | Development Economics
Economic Growth Takes Place when There is Increase in the national Income of a Country Or Increase in Country’s Productive Capacity To understand the concept of Economic Growth, we use many tools like that of the Production possibility Curve. Let us first...