Consumer’s Equilibrium Under IC Approach
Equilibrium = It is the state of rest, which means no tendency to change. A consumer is said to be in equilibrium if s/he has maximized utility under the given constraints. To explain the consumer’s…
Inequality Concept and Measurement
Inequality is the uneven or unequal distribution of income, opportunities, access, resources, etc. It means the different individuals or households or the community have unequal distribution or shares in the variable under consideration is known…
Poverty – Concept and Measurement of Poverty in Nepal
Concept of Poverty → There is no unique definition of poverty, but generally, poverty is defined as a situation in which an individual, household, or community is not able to maintain a minimum standard of living…
Determinants of Economic Growth
Old Question: Q) What is economic growth? Explain its determinants. [2081 NRB Officer] Economic growth is defined as the change in the aggregate real output/income of the economy. Generally, changes in real GDP are considered…
Structure and Characteristics of Developing Economies
Reference Book – M.P. Todaro – Economic Development The term developing economies is more commonly used in economic literature to represent those countries that are trying to develop their economy and achieve the status of…
What is GDP? Methods of Measuring GDP in Nepal
Gross Domestic Product or GDP is the aggregate monetary value of final goods and services produced within the geographical boundary of a country within a specific time, normally a year. Why is GDP the most…
LM – Curve Derivation with Diagram
What is the LM Curve? L = Liquidity demand (money demand) M = Money supply The LM Curve shows the relationship between interest rate {r} and income/output (y) when the money market is in equilibrium.…
Theories and Approaches of Economic Underdevelopment
There is no single specific theory of underdevelopment. However, there are different theories under different names that try to explain the persistent underdevelopment of the low-income countries throughout the world. Such theories are named differently…
Growth vs Stability – Macro Policies for Growth & Stabilization
Growth vs Stability is one of the basic trade-offs in the economy, which shows that if we are focused on growth, it threatens stability, and being focused only on stability is costly for economic growth.…