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
Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer's utility is impossible to measure and quantify.
Want denotes a feeling of lack of satisfaction.
Wants are unlimited.
They are recurring in nature.
They differ with age, gender, seasons, habits and culture.
Utility is the capacity of a commodity to satisfy human wants. In other words, utility is the want satisfying power of a good.
Features of Utility :
1) Relative concept :
Utility is related to time and place. It varies from time to time and place to place. For example,
(i) woollen clothes have a greater utility in the winter.
(ii) sand has greater utility at the construction site than at the sea shore.
2) Subjective concept :
It is a psychological concept. Utility differs from person to person. This is due to differences in taste, preferences, likes, dislikes, nature, habits,
profession etc. For example, stethoscope has utility to a doctor but not to a layman.
3) Ethically neutral concept :
The concept of utility has no ethical consideration. It is a morally colourless concept. The commodity should satisfy any want of a person without consideration of what is good or bad, desirable or undesirable.
For example, a knife has utility to cut fruits and vegetables as well as it can be used to harm someone. Both wants are of different nature but are satisfied by the same commodity. Thus, utility is ethically neutral.
4) Utility differs from usefulness :
Utility is the capacity of a commodity to satisfy human wants, whereas usefulness indicates value in use of the commodity.
For example, milk has both utility as well as usefulness to a consumer, while liquor has utility only to an addict, but has no usefulness.
5) Utility differs from pleasure :
A commodity may possess utility but it may not give any pleasure to the consumer.
For example, injection for a patient has utility because it cures the ailment but it hardly gives any enjoyment or pleasure to him.
6) Utility differs from satisfaction :
Utility is a cause of consumption, satisfaction is the end result of consumption. They are interrelated but still different concepts. For
example, a thirsty person drinks a glass of water since water has the capacity to satisfy thirst. Utility of water is the cause of consumption and the satisfaction derived is the end result of consumption.
7) Measurement of utility is hypothetical :
Utility is an abstract concept. Cardinal or numerical measurement of utility is not possible. For example, a thirsty person after drinking water, may derive higher or lower level of utility. Thus, utility can only
be experienced and found either positive, zero or negative. Negative utility is called disutility.
8) Utility is multi-purpose:
A commodity can satisfy the want of more than one person, it can also be put to several uses. For example, electricity can be used to
serve many purposes and for many people at some point of time.
9) Utility depends on the intensity of want :
Utility depends on the intensity of a want. More intense the want, greater will be the utility. As and when the urgency of want declines, utility diminishes. For example, a hungry person finds more utility in food, than a person who is not hungry.
10) Utility is the basis of demand :
A person will demand a commodity only if it gives utility to him. For example, a sick person has utility in medicines hence, he demands
Aggregate utility from all units consumed : Total utility :: Additional utility from last unit consumed : ______.
Identify & explain the concept from the given illustration.
Rohan created a jewellery box out of pieces of wood.
Identify and explain the concept from the given illustration:
Kavita consumed five units of oranges one after the other.
Choose the correct option:
|Column A||Column B|
|1) Time utility||a) Transport|
|2) Place utility||b) Blood bank|
|3) Service utility||c) Mobile phone|
|4) Knowledge utility||d) Doctor|