An attempt to make economics easy to understand
Dr. Garima Dhir 
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 the previous post, we had discussed how the economy and formal markets came into being, how was money born and what exactly is the role of an economist? We take our … Read more
Cartel Definition Cartel is a collusion between different producers. These producers could be individual firms or even countries. The producers enter into a cartel in order to control the price and quantity supplied of their product. This helps them get higher profits for their products and to cut competition. In consultation with each other, members of … Read more
Perfect Competition Meaning It is a market structure in which there are numerous sellers, selling a product that is largely the same. Having said this, it is important to note that perfect competition is a market construct or a theoretical concept, the existence of which in real life rarely exists. But this helps in understanding … Read more
Over the years, trade in services has grown substantially, witnessing a much more impressive average annual growth rate (5.3%) than merchandise trade (3.4%) between 2005 to 2019. Service trade has played a special role particularly in India’s growth. IT boom, emergence of the BOP sector, advancements in information and communication sector and hospitality services are … Read more
Deflation Meaning Deflation, in simple terms, is a general decline in prices of good and services. Since you are able to buy more from your 100 dollar bill than before, purchasing power of your money goes up. Deflation, is the mirror image of inflation and is measured the same way inflation is, typically using the … Read more
Hyperinflation Meaning Hyperinflation is a rapid and uncontrollable rise in prices of goods and services. Hyperinflation, is different from Inflation, in terms of magnitude and the speed with which prices rise. An economy is said to be facing hyperinflation when the monthly inflation rate exceeds 50% for a sustained period of time. At this rate, … Read more
What are Economies of Scale? In simple terms, economies of scale implies that per unit production cost decreases as the scale of production increases. Why does this happen? This is because, production of a good or service has both fixed and variable costs. Fixed cost, as the name suggests, are constant. As the production level … 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 the previous post, we had discussed how the economy and formal markets came into being. In this post, we are going to take the story of the economy … Read more
Monopoly Definition Monopoly, in economics, implies presence of a single supplier or producer of a product. ‘Mono’ means single and ‘Poly’ means supplier. Thus, monopoly, is a market structure characterized by a single supplier of a commodity which doesn’t have close substitutes. Since there is a single producer and there is lack of competition, the … Read more
Oligopoly Meaning Oligopoly is a market space where only few sellers or producers exist. Oligopoly mostly happens in those markets where goods are broadly the same and provide similar benefit to consumers. Since products offered by these producers are broadly the same, if one firm raises price, they would risk losing market share to the … Read more