An attempt to make economics easy to understand
Introduction India has become a global powerhouse in the pharmaceutical sector, establishing itself as the pharmacy of the world. India is the largest provider of generic drugs and the biggest supplier of low-cost vaccines.[1] This rise has been more predominant in the post-Covid era, as it gave India an opportunity to establish itself in the … Read more
This is a series of conversation between two Economists, Akhilesh Verma and myself, Garima Dhir as we try to unravel and simplify various concepts of economics. In today’s blog we discuss ‘Can the RBI Decide Which Car I Buy?”. In the last few interviews, we have discussed the genesis of economics and how it has evolved over the … Read more
What is Monitoring? Monitoring is the process of continuous assessment of the progress of a project or programme. The project could be implemented by governments, private players, international bodies, Non-profits etc. Monitoring involves collection and analysis of data, such that it is able to provide information on the progress or lack thereof of a project. … Read more
Stratified Sampling Stratified sampling is a technique of random sampling where the entire population is divided into a fixed numbers of distinct groups or strata and then sampling units are randomly selected from each stratum. The entities with each sample should be same or similar, there should be no overlap between the strata and together … Read more
Bond Prices and Bond Yield Bonds are financial instruments issued by governments or corporates to raise money. Main components of a bond are its face value or price, yield on the bond and maturity date. Bond prices and bond yield move in opposite direction. To understand this, consider a bond issued in 2020 with face value … Read more
What is a Bond? Bond is a financial instrument used by governments or corporates to raise money. The entity issuing a bond is borrowing money from the purchaser of the bond, with a promise to return the original amount (principal) along with interest. Since borrowing money implies that it is a ‘Debt’, bond markets are … Read more
Substitution Effect Definition Substitution Effect is change in demand for a good as the price of its substitute changes. Say if the price of Commodity A rises, consumers might shift to Commodity B. Substitution effect is seen only in the light of change in relative prices of goods, assuming that the nominal income of the … Read more
Income Effect Definition Income Effect is the change in demand of a good when the consumer’s disposal income changes. Disposable income could change as a result of a change in income or due to a change in the prices of the goods that the consumer uses. For instance, a decline in the price of other … Read more
This is a series of conversation between two Economists, Akhilesh Verma and myself, Garima Dhir as we try to unravel and simplify various concepts of economics. In today’s blog we discuss ‘Why Does Bangladesh Export Garments and Germany Cars?”. In our last blog, we examined why some countries are poor and others rich. We also discussed how India … Read more
Cross Price Elasticity Meaning Cross Price Elasticity refers to the change in demand of one good with change in the price of another. Why measure a change in the demand of one good when the price of another changes? This is because the two goods could be interconnected with each other. The two goods under … Read more