Tutor profile: Manvi B.
Subject: Basic Math
Using only an addition, how do you add eight 8's and get the number 1000?
888 + 88 + 8 + 8 +8 = 1000
Explain the circular flow of income. ( Without financial market)
It refers to cycle of generation of income in the production process, its distribution among the factors of production and finally, its circulation from households to firm in the form of consumption expenditure on goods and services produced by them. Assumptions: 1. There are 2 sectors in the economy; Households and firms. 2. Household sector supplies factor services only to firms and the firms hire factor service only from household. 3. Firms produce goods and services and sell their entire output to the households. 4. Household receive factor income for their service and spend the entire amount on consumption of goods and services. 5. There are no savings in the economy.
What does the opportunity cost mean? Explain with a numerical example.
Opportunity Cost is something when an individual has to give up something to achieve or acquire something else. In microeconomy, the opportunity cost is also known as alternative cost and is also used in calculating cost benefits or analysing a project in terms of best alternative while making a choice. For example, 1. A business owns its building. If the company moves, the building could be rented to someone else. The opportunity cost of staying there is the amount of rent the company would get. 2. Dev has three career offers to choose from. Job X has a salary offer of Rs 60000, job Y offer is Rs. 70000 and job Z offer is Rs. 80000. So, in this case, out of three offers, Dev has to choose what is best for him. If Dev opts for job offer Z the next best alternative not chosen is job offer Y and thus the opportunity cost is Rs 70000.