What is the meaning of Ceteris Paribus?

Ceteris Paribus is a commonly used phrase in economics which is used to completely ignore the effects of other factors apart from the one which is being under consideration which signifies the special causal relation between two variables. The phrase theoretically means ‘all other things being unchanged or constant’. It is basically a Latin phrase […]

What are Actuaries?

An Actuary is a person who has expertise in the fields of economics, statistics and mathematics and helps in assessing risks and estimation of premiums for insurance firms. Advanced techniques, statistical and analytical skills are needed for evaluating risks and returns related to every proposal. They have a vital role in the operations and profitability […]

Voluntary Provident Fund

Voluntary Provident Fund (VPF) refers to the voluntary contribution that an employee makes towards his Provident Fund Account over and above the mandatory 12% of his basic salary. VPF is fixed at a proportion of the salary and its percentage cannot be reduced or increased midyear. VPF is available only to salaried employees and is […]

Animal Products and Income Elasticity of Demand

The animal products have positive income elasticity of demand. This implies that as the consumers’ income rises, more their consumption pattern will change and more they will demand the animal products such as meat, eggs and milk. This is one reason that despite reduced importance of livestock as draught animals, they still hold a prominent […]

Meaning of Investment

The meaning of the term “investment” is different for economists than the rest of the world. When we ask our banker for investment, he / she would probably start taking about stocks, mutual funds, some deposit accounts or insurance products. But, for an economist, these purchases of financial assets are NOT investment simply for the […]