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Characteristics of Indifference curve are as follows : 

1. Indifference curve slopes downward from left to right ( i.e. it has a negative slope) 

2. Higher indifference curve shows higher level of satisfaction and vice-versa. 

3. Two indifference curves of the same consumer never cut each other as different ICs show different levels of satisfaction. 

4. Indifference curve never touches any of the axis. 

5. Indifference curve is convex to the origin because MRS_xy is diminishing. 

6. Indifference curves need not to be parallel. Indifference curves of perfect substitutes are parallel. 

7. The curvature of the indifference curve shows the degree of substitute and complementary nature between two goods.

Three factors affecting demand: - 

(I) Utility of the Goods – Utility means want satisfying power of a commodity. It is a subjective factor which varies from person to person. Goods having greater or more utility will be in greater demand and vice- versa. 

(II) Income Level – Income Level directly affects demand. Higher the level of income, higher will be the demand and lower the level of income, lesser will be the demand. 

(III) Distribution of Wealth – Distribution of wealth also affects demand. If the distribution of wealth in society is unequal, then luxurious goods will be demanded by the affluent section of society. But as the distribution of wealth becomes equal, there will be increased demand of necessary and comfortable goods.

Meaning : - The Word ‘Budget’ is said to have its origin from the French word Bourget which means ‘a small leather bag’. Budget is a detailed economic statement which includes the details of income (i.e., revenue) and expenditure of the government. A budget is a document which contains estimates of government receipts and expenditure during a financial year (In India financial year runs between April 1 to March 31). Definitions 

(1) According to Rene storm, “ The budget is a document containing a preliminary approval plan of public revenue and expenditure.” 

(2) According to Find lay Shiras, ‘A budget in short includes a statement of the receipts and expenditure of the previous year, an estimate of the receipts and expenditure of the ensuring financial year and proposals as to meet ways and means for meeting a deficit or distributing a surplus, if any.” 

(3) According to P.F. Taylor, “Budget is a matter financial plan of the government. It brings together estimates of anticipated revenue and proposed expenditures for the budget year.” 

Objective of the Budget :- Budget is not only an annual statistical statement of government revenue and expenditure but it also reflects government policies and a set of Objectives which the government has to fulfill through budget. 

Government tries to fulfill the following objectives through buget. 

(1) Encouragement of Economic Development: - The basic objective of the budget is to accelerate the place of economic development in the country. For accelerating the palace of economic development. (I) Government may grant tax rebates to production activities (II) government may develop infrastructure like roads, canals, power, bridges etc. by increasing public expenditure and (III) Government may establish public enterprises. 

(2) Balanced Regional Development: - Through budget, government may promote the development in backward areas for ensuring balanced regional development in the economy. Government may grant tax rebates to these areas may establish public enterprises in these areas and may allocate more funds for infrastructural development in these backward areas. 

(3) Re-distribution of Income and Property: - Budget plays a vital role in reducing the economic disparities in the economy. Many steps can be taken in the budget for reducing the economic disparities in the economy. For example (i) heavy taxes on higher income group, (ii) tax exemption to lower income group, (iii) higher taxes on goods consumed by higher income group. 

(4) Economic Stability : - Economy faces the cycles of boom and depression and the budget aims to put a control on these cycles. Government may adopt ‘Surplus budget’ during boom and ‘deficit budget’ during depression. 

(5) Creation of Employment: - Employment creation is one of the important objectives of government budget. Government may promote labourintensive techniques in public works programmers and may also initiate various employment generation programmers in the economy. 

(6) Management of public enterprises: - Government may establish public enterprises for ensuring social Justice in the economy because the aim of public enterprises is to ensure social welfare and not earning profit.

Utility means 'Want satisfying power of a commodity or the capacity of a commodity to satisfy a particular want of consumer. Every commodity has some inherent want satisfying capacity. Utility is the relative word. Although liqor is expensive still demand is there. 

In the words of Frazer, “Utility is simply desiredness.” Even immoral and anti-social acts are of utility to some person. If the demand for a particular goods greater will be utility obtained by the consumer with the consumption of that goods. As consumer continues to consume more units of a particular goods his intensity of consumption for that goods decreases.

The superposition principle states that the voltage across (or current through) an element in a linear circuit is the algebraic sum of the voltages across (or currents through) that element due to each independent source acting alone.

The principle of superposition helps us to analyze a linear circuit with more than one independent source by calculating the contribution of each independent source separately. However, to apply the superposition principle, we must keep two things in mind:

1. We consider one independent source at a time while all other independent sources are turned off. This implies that were place every voltage source by 0 V (or a short circuit), and every current source by 0 A (or an open circuit). This way we obtain a simpler and more manageable circuit. Other terms such as killed, made inactive, dead end, or set equal to zero are often used to convey the same idea.

2. Dependent sources are left intact because they are controlled by circuit variables. With these in mind, we apply the superposition principle in three steps:

In economic analysis circular flow has a vital role to play. Salient points showing the importance of circular flow of income are as follows : 

1. It helps in estimation of national income. 

2. It gives the knowledge of working of the economy. 

3. Equality between savings and investment becomes an important basis for monetary policy in the economy. 

4. Its study also helps in fiscal policy from the economic point of view.

5. Its study helps in analysing the reasons of imbalance in the economy and making solutions to them. 

6. Keynesian Theory of Income and Employment takes important note of elements associated with flow of money. 

7. It also helps in studying the effects on imports and exports in the economy. 

8. This circular flow explains that 

Production ≡ Income ≡ Expenditure 

This identity becomes basis for the methods of calculating national income.

(d) All of these 

Units of RC = ohm x ohm⁻¹ x second = second. 

Therefore, dimensions of RC = time.

The superposition principle states that the voltage across (or current through) an element in a linear circuit is the algebraic sum of the voltages across (or currents through) that element due to each independent source acting alone.

The principle of superposition helps us to analyze a linear circuit with more than one independent source by calculating the contribution of each independent source separately. However, to apply the superposition principle, we must keep two things in mind:

1. We consider one independent source at a time while all other independent sources are turned off. This implies that were place every voltage source by 0 V (or a short circuit), andevery current source by 0 A (or an open circuit). This way we obtain a simpler and more manageable circuit. Other terms such as killed, made inactive, deadened, or set equal to zero are often used to convey the same idea.

2. Dependent sources are left intact because they are controlled by circuit variables. With these in mind, we apply the superposition principle in three steps:

Austria economists modified the concept of ‘Real cost’ and presented the concept of opportunity cost. Resources are limited to unlimited needs and hence the production of one goods means the sacrifice of the other. 

According to Benham, “ The opportunity cost of anything is the next best alternative that could be produced instead by the same factors or by equivalent group of factor costing the same amount of money.” 

Hence, opportunity cost of a factor refers to its value available in its next best alternative use. 

The concept of opportunity cost can be explained with an example. A person can obtain three services: Defee college Lecturer (Salary Rs. 40,000), Bank officer (Salary Rs. 28000) and sales officer (Salary Rs. 20,000). The person will not opt the job of a Degree college Lecture and sacrifice two another available Jobs. The nect best alternative sacrificed by the person is the Job of bank officer with salalry of Rs. 28,000. Hence, the opportunity cost of selected Job (Salary Rs. 40,0000) is Rs. 28,000 (i.e., the salary of next best alternative).

Definitions of Tax : 

1. According to Dalton, “A tax is a compulsory contribution imposed by a public authority irrespective of an exact amount of service rendered to the tax payer in return and not imposed as a penalty for any legal offence.” 

2. According to Byehler, “It is a compulsory contribution, although it may be paid willingly enough, but it is not a penalty for legal offences.” 

3. According to De Marco, “ The tax is the price which citizen pays to the State to cover his shares of the cost of the general public services which will consume.”

4. According to Bastable, “Tax is compulsory contribution of the wealth of a person or body of persons for the service public power.” 

Thus, A tax is a compulsory payment made by a person or a firm to a government without reference to any benefit, the payer may derive from the government. 

Characteristics of Tax : 

1. A tax is a compulsory contribution. Every-one has to pay a tax upon whom it is levied by the State. Refusal to pay a tax is subject to punishment. 

2. It is the duty of the tax-payer to pay the tax, if he is liable to pay it.

3. Revenue received from tax payers may not be incurred for their benefit alone, but for the general and common benefit. 

4. Since public expenditure is done for the common benefit and the benefit may not be in proportion of payment of tax. 

5. A tax may be imposed on an individual or poroperty or commodities, but it is actually paid by individuals. 

6. It is a legal collection.

Primary deficit is the difference between fiscal deficit and interest payment.

=[Primary Deficit or Gross Primary Deficit]=[fiscal deficit]-[interest payment]

Primary deficit indicates how much government borrowing is going to meet expenses other than interest payment. It reflects the extent to which future burden is increasing. Zero Primary Deficit : - Indicator of Fiscal Discipline: - The Zero primary deficit signifies that the government has to resort to borrowing only to fulfill its earlier commitments of interest payments. In other words, the government is not adding to the existing loans for the purpose other than meeting its existing obligation of interest payment. It is a sign of fiscal discipline or fiscal responsibility on the part of the government High Primary deficit, on the other hand, reflects fiscal irresponsible of the government.

The steps of production possibility curve falls From top to bottom.

Capitalist economy decision are taken on the basis of price mechanism.

Distinction between Current Account and Capital Account of Balance of Payment. 

(I) Current account includes import-export of goods and services and unilateral transfers from one country to other, while capital account includes all such transaction between residents of a country and rest of the World which cause a change in assets or liability status of the residents of a country and its residents. 

(II) Transaction in current account take place in the form of flow while in capital account it takes place as stock. 

(III) Transaction related to current account bring change in current income of the country while transaction related to capital account affect capital stock of the country.

Given x - y = 5 and xy = 24 (x>y)
(x + y)² = (x - y)² + 4xy = 25 + 96 = 121
So, x + y = 11; sum of these numbers is 11.

Cubing on both sides gives
(x - y)³ = 5³
x³ - y³ - 3xy(x - y) = 125
x³ - y³ - 72(5) = 125
x³ - y³= 125 + 360 = 485
So, difference of their cubes is 485.

Cubing both sides, we get
(x + y)³ = 11³
x³ + y³ + 3xy(x + y) = 1331
x³ + y³ = 1331 - 72(11) = 1331 - 792 = 539
So, sum of their cubes is 539.

An electric dipole is defined as a couple of opposite charges q and –q separated by a distance d. By default, the direction of electric dipoles in space is always from negative charge -q to positive charge q. The midpoint q and –q is called the centre of the dipole. 

Production possibility curve shows economic problem.

Cansumer behavior is studed in Micro Economics.

According to "A. Marshall" Economics is a Science of human welfare.

Leakage of Income – Leakage represents that income which is saved and not returned back to income flow. If factors of production do not spend their entire income on purchasing goods and service is called the leakage of income. Similarly, if firms do not spend their income and keep away a part of their income as undistributed income and profit, it will also be called leakage from income flow. 

Thus, “ Leakage of income is that income which is not returned to circular flow as an expenditure and is kept away from the flow.” In other words, “ Leakage gives the squeezing affect on national income.” Injection of Income : - Injection of income is that income addition which takes place in circular flow from outsources other than circular flow. Injection of income causes an increase in the process of income generation in the economy. 

In other words, “ Injection gives the expanding effect on National income.”