Introduction to Micro and Macro Economics
- Types of Utility
- Concepts of Utility
- Relationship Between Total Utility and Marginal Utility
- Law of Diminishing Marginal Utility
- Assumptions of Diminishing Marginal Utility
- Exceptions to the Law of Diminishing Marginal Utility
- Criticisms of the Diminishing Marginal Utility
- Significance of the Diminishing Marginal Utility
- Relationship Between Marginal Utility and Price
- Diminishing Marginal Utility
Elasticity of Demand
Forms of Market
- Concept of National Income
- Features of National Income
- Circular Flow of National Income
- Different Concepts of National Income
- Methods of Measurement of National Income
- Output Method/Product Method
- Income Method
- Expenditure Method
- Difficulties in the Measurement of National Income
- Importance of National Income Analysis
Public Finance in India
Money Market and Capital Market in India
- Financial Market
- Money Market in India
- Structure of Money Market in India
- Organized Sector
- Reserve Bank of India (RBI)
- Commercial Banks
- Co-operative Banks
- Development Financial Institutions (DFIs)
- Discount and Finance House of India (DFHI)
- Unorganized Sector
- Role of Money Market in India
- Problems of the Indian Money Market
- Reforms Introduced in the Money Market
- Capital Market in India
- Structure of Capital Market in India
- Role of Capital Market in India
- Problems of the Capital Market
- Reforms Introduced in the Capital Market
Foreign Trade of India
Introduction to Micro Economics
- Features of Micro Economics
- Analysis of Market Structure
- Importance of Micro Economics
- Micro Economics - Slicing Method
- Use of Marginalism Principle in Micro Economics
- Micro Economics - Price Theory
- Micro Economic - Price Determination
- Micro Economics - Working of a Free Market Economy
- Micro Economics - International Trade and Public Finance
- Basis of Welfare Economics
- Micro Economics - Useful to Government
- Assumption of Micro Economic Analysis
- Meaning of Micro and Macro Economics
Analysis of Demand and Elasticity of Demand
Analysis of Supply
Types of Market and Price Determination Under Perfect Competition
Factors of Production
Introduction to Macro Economics
Determinants of Aggregates
- Introduction of Public Economics
- Features of Public Economics
- Meaning of Government Budget
- Objectives of Government Budget
- Features of Government Budget
- Public Economics - Budget (1 Year)(1 April to 31 March)
- Types of Budget
- Taxable Income
- Budgetary Accounting in India
- Budgetary Accounting - Consolidated , Contingency and Public Fund
- Components of Budget
- Factor Influencing Government Budget
Limitations of index numbers :
Index numbers are useful in practice. However they suffer from certain limitations. Therefore, they are not completely reliable.
1) Based on samples :
Index numbers are generally based on samples. We cannot include all the items in the construction of the index numbers. Hence they are not free from sampling errors.
2) Bias in the data :
Index numbers are constructed on the basis of various types of data which may be incomplete. There may be bias in the data collected. This is bound to affect the results of the index numbers.
3) Misuse of Index Numbers :
Index numbers can be misused. They compare a situation in the current year with a situation in the base year. Hence a person may choose a base year which will be suitable for his purpose. For example, a businessman may choose a year in which his profit is high as the base year and show that his profit is falling in the current years.
4) Defects in formulae :
There is no perfect formula for the construction of an index number. It is only an average and so it has all the limitations of an average.
5) Changes in the economy :
The habits, tastes and expectations of the people in a country are always changing and all these changes cannot be included in the estimation of index numbers.
6) Qualitative changes :
The price or quantity index numbers may ignore the changes in qualities of the products. At any given time, a better quality commodity will have a higher production cost and a higher price than an ordinary commodity which is a substitute for the better product.
7) Arbitrary weights :
The weights assigned to different commodities may be arbitrary.
8) Limited scope :
An index number has limited scope because if it is constructed for one purpose then it cannot be used for any other purpose.
Choose the correct option:
Statements related to limitations of index numbers.
a) Index numbers are not completely reliable.
b) There may be a bias in the data collected.
c) Every formula has some kind of defect.
d) Index numbers ignore changes in the qualities of products.
State with reason whether you agree or disagree with the following statement:
Index numbers are free from limitations.