What is Public Expenditure? Public Expenditure, as the name signifies is the expenses that the government of different levels, i.e. central, state or local bodies, incurs either for its own maintenance or for meeting the common needs of the citizens or for promoting economic and social welfare. For Instance: Expenditure to run government effectively by […]
Economics
Poverty
What is Poverty? Poverty means the state of deprivation of well-being. It can be seen in low-income or no-income of people and their inability to meet their basic needs and acquire basic services which are necessary for the livelihood of a person and his/her family. Basic needs mean an individual’s needs relating to food, clothing, […]
Difference Between Leakages and Injections
Leakages Vs Injections In an economy, there can be expansion or contraction of the circular flow of income, wherein the former refers to the increase in the income level/output level in the economy. Whereas the latter implies a fall in the level of income or output. The expansion of the circular flow is due to […]
Difference Between Inflationary Gap and Deflationary Gap
Inflationary Gap Vs Deflationary Gap At full employment level, the equilibrium level of an economy is defined, in which the level of demand is equivalent to the level of income. When the aggregate demand is in excess of the productive potential of the economy, the gap is inflationary. Whereas the variance between full employment and […]
Imperfect Competition
What is Imperfect Competition? Imperfect Competition can be described as a practical market setting where the individual sellers can influence the price of the offerings. However, it does not imply that they have full-fledged control over the prices and the absence of rivals, but the control is possible up to a certain extent. Further, the […]