In this article we will discuss about:- 1. Meaning of Index Numbers 2. Features of Index Numbers 3. Steps or Problems in the Construction 4. Construction of Price Index Numbers (Formula and Examples) 5. Difficulties in Measuring Changes in Value of Money 6. Types of Index Numbers 7. Importance 8. Limitations. Meaning of Index Numbers: The value of money does [...]
In this article we will discuss about the mechanism of price system. Also learn about its functions and purposes. All economies face the same problems although their approach to solving them may differ. In a capitalist country, or even in a mixed economy like our own, prices perform, or can be used to perform, three basic functions: 1. The allocation [...]
The following article will guide you about how prices of joint products are determined. In the case of joint products, goods are jointly produced and their production costs are jointly incurred. Under perfect competition, the price of a product is equal to its marginal cost, but in the case of joint products the marginal cost of each of these goods [...]