A Website on Financial Management explaining various topics of finance in a layman's terms.
A Website on Financial Management explaining various topics of finance in a layman's language.
19/10/2022
How Does Elasticity Work?
How Does Elasticity Work? Elasticity is a vital concept in economics and finance. It basically tells about the impact of a change in one variable because of a change in another. Or in ot
18/10/2022
Why Must Marginal Utility be Equal to Price?
Why Must Marginal Utility be Equal to Price? Marginal Utility is the extra or additional utility or satisfaction that a user gets after consuming one more unit of a commodity. The concept of MU is very use
14/10/2022
What are the Types of Elasticity?
What are the Types of Elasticity? Elasticity, in general, is the responsiveness of one variable due to a change in a different variable. In economics, the concept of elasticity helps us understa
14/10/2022
Why is Beta Better than Standard Deviation in Measuring Risk?
Why is Beta Better than Standard Deviation in Measuring Risk? Almost all investments carry risk, and in general, the greater the risk more is the reward. The two most popular measures of risk are beta and standard deviatio
12/10/2022
Why Do we Unlever and Relever Beta?
Why Do we Unlever and Relever Beta? Beta is one of the most crucial measures of risk. When we usually talk about beta, we are talking about levered beta. This beta basically depicts the impact of
10/10/2022
What is "Governments Can Sometimes Improve Market Outcomes"?
Eminent economist N. Gregory Mankiw gave us ten principles of economics in his famous book 'Principles of Economics". The seventh principle of the ten principles is that governments can sometimes improve market outcomes. This principle explains to us the importance of government in improving market outcomes.
Principle 7: Governments Can Sometimes Improve Market Outcomes What is "Governments Can Sometimes Improve Market Outcomes"? Eminent economist N. Gregory Mankiw gave us ten principles of economics in his famous book 'Prin
10/10/2022
What is Price Rise When the Government Prints too Much Money"?
"Prices rise when the government prints too much money" is the ninth principle of the ten famous principles of economics given by the eminent macroeconomist N. Gregory Mankiw. He gave us these principles in his book "Principles of Economics."
Principle 9: Prices Rise When The Government Prints Too Much Money What is Price Rise When the Government Prints too Much Money"? "Prices rise when the government prints too much money" is the ninth principle of the ten famo
08/10/2022
What is Consumer Equilibrium?
Equilibrium in economics refers to a point or position that offers maximum benefits in a given situation. Similarly, a consumer is said to be in equilibrium when they don't want to change the current level of consumption.
Consumer Equilibrium – Meaning, Example, and Graph What is Consumer Equilibrium? Equilibrium in economics refers to a point or position that offers maximum benefits in a given situation. Similarly, a consumer
08/10/2022
Indifference Curve (or IC) is an economic phenomenon that helps understand customer preference. It is basically a graphical representation showing different combinations of two commodities that give a similar level of satisfaction to a customer; hence, the customer is indifferent between them.
Indifference Curve – Meaning, Features, Example, and Graph Indifference Curve (or IC) is an economic phenomenon that helps understand customer preference. It is basically a graphical representation showing different com
07/10/2022
What is the Marginal Rate of Substitution?
Marginal rate of substitution (MRS) is an economic concept that helps in understanding human behavior. MRS is basically the amount of a commodity that a user is willing to forgo for new units of another commodity if they offer the same level of utility or satisfaction.
Marginal Rate of Substitution – Meaning, Calculation, and Graph What is the Marginal Rate of Substitution? Marginal rate of substitution (MRS) is an economic concept that helps in understanding human behavior. MRS is basi
07/10/2022
What is a Free Market Economy?
A free market economy is an economy in which the driving forces are the demand and supply in the market. Unlike centrally-planned economies or command economies, it is unregulated and free from government controls and directions. The market participants decide the production and resource allocation, distribution, and pricing of the goods and services in the economy.
Free Market Economy - Meaning, Features, Advantages, and Limitations What is a Free Market Economy? A free market economy is an economy in which the driving forces are the demand and supply in the market. Unlike centrally-plan