M.A. @ Indira Gandhi National Open University (IGNOU) B.A. @ University of Delhi
Teaching is more than a profession to me. Being the eldest child in the entire family, I have spent my entire childhood teaching my younger cousins. I like interacting with students and nothing gives more happiness to me than clearing their conceptual doubts and making them feel confident about the topics. I like to be a mentor to my students rather than just a tutor. As I believe that I am able to build that good rapport with my students who are free to share anything that they want and are always welcome for any kind of advice in life. Talking about interests beyond teaching, being an Economics graduate, I have sound interest in data analysis as well and have written few research papers in the domain of Economics. And my interests outside academics include listening to music that makes me feel relaxed and travelling to places that include lots of nature.
Absolute Advantage, AD-AS Model, Aggregate Demand and Aggregate Supply, Aggregate Expenditure Model, Anti-Trust Laws, Balance of Payment, Comparative Advantage, Consumer Surplus, Cross Price Elasticity, Demand and Supply
Hi there! My name is Aakriti Aggarwal. Talking about my teaching experience, I have been working as a tutor for the past 6 years. This includes 4.5 years experience of working as a Private Tutor, which involved taking face-to-face tutoring lessons of middle grade students. And for the past 1.5 years, I am working as an Online Tutor (Economics), providing online tutoring sessions to US based college students under the Chegg online tutoring process called CBLH (Chat Based Live Help). I understand that Economics is much more than the assumptions and theories. Thus, my teaching lessons involve the delivery of subjective content in economics using real-life examples and applications that not only builds interest among the students but also help them to retain concepts for a longer period of time. I understand the importance of individual differences (each student is different in his own way). Thus, keeping in mind the comfort of the students first, I always try to teach as per the need and the pace of the student. I believe that teaching is not just imparting subjective knowledge to the students, but it involves the development of interest in studies and confidence to excel in the subject among the students.
Consumers' willingness to buy goods and services at given rates is referred to as demand. From the microeconomics point of view, demand may be a market demand where the demand of individual consumers for a particular good/service is studied. Whereas, from the macroeconomics point of view, demand may be inferred as aggregate demand in which demand of all the sectors of the economy (households, firms, government, foreign sector) is evaluated. Another vital concept of economics is a supply which means the total volume of goods and services being offered by the production units in a market at a prevailing price. The factors that affect the supply of a product/service include the price of that product/service, costs of production, level of technology, etc.
Consumer surplus is the disparity between the highest price that the consumers or buyers are willing to pay and the price they actually pay. Graphically, the region below the demand curve and above the equilibrium price depicts the consumer surplus. An imperfect market such as a monopoly often leads to fall in the consumer surplus.
‘Mono’ means single and ‘poly’ refers to a seller. Thus it can be concluded that in a monopoly market there is just one seller. However, there is a large number of buyers in a monopoly market. There are strong barriers to entry in a monopoly market. The existing firm does not allow new firms to enter the market. The restrictions can be created in the form of patent or licensing rights by the exiting firm. As there is no large number of sellers in a monopoly, thus a single monopolist fixes its own price and is a price-maker and not a price-taker. A monopolist faces a downward-sloping demand curve. This implies that prices have to be reduced to create more demand. As according to the law of demand, more output can be sold only at a lower level of prices. Fuel and power is an example of a monopoly market.
‘Oligi’ means few and ‘poly refers to sell. Thus it can be concluded that in an oligopoly market there are few sellers. However, the number of sellers is more than two. There is a large number of buyers in such a market. Both homogenous and differentiated goods are sold in an oligopoly market. Homogenous goods are sold in a pure oligopoly market. Where as differentiated goods are sold in a differentiated oligopoly market. Oil and gas, aluminum, and steel are examples of pure oligopoly. While smartphone and computer operating services exhibit differentiated oligopoly. It is difficult to analyze the pattern of behavior of firms in an oligopoly market. As a result, the shape of the demand curve under an oligopoly market is indeterminate. This implies that the demand curve under such a market keeps on shifting and is indefinite. Firms under an oligopoly market follow the policy of price rigidity.This is because firms avoid price war in such a market. As a result, there exists a non-price competition among the firms in oligopoly market
There is a large number of sellers in the market of monopolistic competition. As a result, each seller has a limited share of the market. Also, there exists competition in the market due to a large number of sellers. There are no or limited barriers to entry in a market of monopolistic competition. Due to the easy entry of new firms, economic profits are wiped out in the long run for firms under monopolistic competition. The entry and exit of firms in monopolistic competition are easier than the perfect competition but difficult than monopoly. Goods sold in such a market are closely related but differentiated products. The differentiation of products based on brand, color, size, and shape is known as product differentiation. Due to product differentiation, goods in monopolistic markets are close substitutes for each other. However, they may not be perfect substitutes for each other. The total cost of firms under monopolistic competition includes a huge amount of selling costs. This is because both buyers and sellers have lack knowledge about the product market under monopolistic competition.
Gross Domestic Product (GDP) is an economic indicator that measures the value of all final goods and services manufactured in an accounting year. The GDP is calculated by adding up the value of all final goods and services generated in a country over the course of a year. As a result, it can be used to determine which sectors of the economy (agriculture, manufacturing, and services) are contributing the most to economic development and which sectors need to be improved in order to contribute significantly to economic growth. The GDP is commonly used as an indicator of economic well-being around the world. The GDP is often used by policymakers and economists to assess the output of various economic agents (households, production units, public institutions, financial institutions). As a result, they have ties to their welfare state. However, it is an insufficient indicator of the economy's quality of living. As every economy requires a sufficient level of nutrition, health, education, clean drinking water, sanitation, and housing, among other things. And many of these social facets of well-being are not addressed by GDP.
When a country can produce a good at a lower opportunity cost than other countries, then that country is said to have a comparative advantage in that good. Opportunity cost is the cost of producing an alternative good. It can be calculated as sacrifice/gain. A nation having a comparative advantage in a product export that product and imports a product in which it does not have a comparative advantage. This enables that nation to gain specialization in the production of that product and further in the achievement of economies of scale.
When a country can produce more units of good than other countries using similar resources, then that country is said to have an absolute advantage in that good.
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