In simple words, the standard of living implies the level of welfare provided to the residents of a country, i.e. it may refer to all those goods and services that people are able to consume and the resources they can access. On the contrary, quality of life indicates the welfare and well being of a person or group. Standard of Living is a quantifiable term, in the sense that it takes into account only material factors. As against, quality of life is a subjective assessment of how satisfied … [Read more...]

Factor Income refers to the income of means of production such as rent, wages, interest and profit, which accrues to land, labour, capital and entrepreneur, respectively. On the other hand, Transfer Income are the incomes which are not received by the person in the form of rewards for the services rendered, i.e. there is the transfer of money without the exchange of goods or services, National Income is the summation of all factor incomes earned by the country's residents during the period of … [Read more...]

The literal meaning of the word 'oligopoly' is 'competition among few'. Collusive Oligopoly is when the oligopolists come in formal or informal agreement with one another to avoid competition among themselves. On the other hand, in a non-collusive oligopoly, the firms tend to compete with each other, by setting their own price and output policy, which is independent of the other firms. What is Oligopoly? Oligopoly is a type of market characterised by a few firms offering either homogeneous … [Read more...]

Based on the number of consumers, demand is classified as individual demand and market demand. Individual demand implies, the quantity of good or service demanded by an individual household, at a given price and at a given period of time. For example, the quantity of detergent purchased by an individual household, in a month, is termed as individual demand. Unlike Market Demand implies the sum total of all individual demand for the commodity at each possible price, over a period of time. For … [Read more...]

We all know that demand for a product is mainly affected by its price, but there are some other factors which can also affect its demand. One such factor is 'Price of Related goods', wherein the term 'related goods' means complements and substitutes. In simple words, Complementary Goods are the goods that complete each other. This means that such goods are used in conjunction with one other, which enhances their value. In other words, these goods have no value when they are consumed alone. On … [Read more...]

The consumer has a limited income, that acts as a constraint to his/her maximizing behaviour, i.e. the budget constrains how much the consumers can consume. While budget line graphically represents the bundle of two goods which a consumer can buy with the given budget. As against, all the combinations in the positive quadrant, which lie on or below the budget line are called a budget set. You might have come across the term 'budget' at least once in your life. To know what quantities of two … [Read more...]

Traditional Marketing is when the marketing activities are undertaken in a conventional fashion, i.e. by way of newspaper, television radio and magazine. As against, digital marketing is when we use the online platform to promote the products and services of our company. Marketing involves those activities which assist the company in promoting the offerings and converting the prospects into leads. In today's scenario, marketing has completely changed its form, i.e. from physical to digital. … [Read more...]