The shape of PPC  is downward sloping and concave to the point of origin.

The Budget Line, which is also known as Budget Constraint exhibits all the combinations of two commodities that a customer can manage to afford at the provided market prices and within the particular earning degree.

The budget line is a graphical delineation of all feasible combinations of two commodities that can be bought with provided income and cost so that the price of each of these combinations is equivalent to the monetary earnings of the customer.

A budget set refers to all those quantities of two goods that a consumer can buy, given the prices of the goods and his money income. Its equation is given by:

P₁.X₁ + P₂.X₂ <= M

Types of Economic System

• Capitalist Economy- In a capitalist system, the products manufactured are divided among people not according to what people want but on the foundation of Purchasing Power—which is the ability to buy products and services. Which means an individual needs to have the money with him to buy the goods and services. The Low-cost housing for the underprivileged is much required but will not include as demand in the market because the needy do not have the buying power to back the demand. Therefore, the commodity will not be manufactured and provided as per market forces.
• Socialist Economy- This economy system acknowledges the three inquiries in a different way. In a socialist society, the government determines what products are to be manufactured in accordance with the requirements of society. It is believed that the government understands what is appropriate for the citizen of the country, therefore, the passions of individual buyers are not given much attention. The government concludes how products are to be created and how the product should be disposed of. In principle, sharing under socialism is assumed to be based on what an individual need and not what they can buy. A socialist system does not have a separate estate because everything is controlled by the government.
• Mixed Economic – Mixed systems have characteristics of both the command and market economic systems. For this purpose, the mixed economic systems are also called as dual economic systems. However, there is no sincere method to determine a mixed system. Sometimes, the word represents a market system beneath the strict administrative control in certain sections of the economy.

Difference between Bar Diagram and Histogram:
(i) The spacing and the width or the area of bars are all arbitrary. It is the height and not the width or the area of the bar that really matters. But the width in a histogram is as important as its height.
(ii) Bar diagram can be drawn both for discrete and continous variables but histogram is drawn only for a continuous variables.
(iii) In bar diagram some space must be left between consecutive bars; but in histogram no space is, left between two rectangles.

The pictorial representation of a grouped data, in the form of vertical or horizontal rectangular bars, where the lengths of the bars are equivalent to the measure of data, are known as bar graphs or bar charts.

The bars drawn are of uniform width, and the variable quantity is represented on one of the axes. Also, the measure of the variable is depicted on the other axes. The heights or the lengths of the bars denote the value of the variable, and these graphs are also used to compare certain quantities. The frequency distribution tables can be easily represented using bar charts which simplify the calculations and understanding of data.

Concept of Law of Diminishing Marginal Utility

Law of Diminishing Marginal Utility (DMU) states that as we consume more and more units of a commodity, the utility derived from each successive unit goes on decreasing. People spend their income on various goods because consuming more and more of any one good reduces the marginal satisfaction obtained from further consumption of the same good. Law of DMU has universal applicability and applies to all goods and services.

Assumptions

• All the units of a commodity are same in terms of size, quality, design etc
• Unit of a good must be standard
• No change in taste
• No change in the price of substitute goods
• Continuity in consumption.

The median is the middle number in a set of numbers. In order to find the median, you must order up the numbers in numerical order, and then identify the one in the middle.

Depreciation refers to a reduction in the value of any asset over time, due in particular to wear and tear or getting old.

In accounting terms, depreciation is outlined as the reduction or decreasing of the recorded value of a particular asset in a very systematic manner until the worth of the asset becomes zero or negligible.

Examples of some fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time.

Sampling error arises because of the variation between the true mean value for the sample and the population. On the other hand, the non-sampling error arises because of deficiency and inappropriate analysis of data. Non-sampling error can be random or non-random whereas sampling error occurs in the random sample only.

Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industrial, or social problem, it is conventional to begin with a statistical population or a statistical model to be studied.

The central problems of an economy revolve around these factors.

1. What to produce?
2. How to produce?
3. For whom to produce?

1. What to produce?

It is one of the central problems that arise in an economy. It is related to the type of goods and services that need to be produced and the quantity to be produced.

Since resources are in limited quantities, producing more of one good will result in less production of the other.

2. How to produce?

This aspect deals with the process or technique by which the goods and services can be produced. Generally, there are two techniques that can be used for producing, which are:

1. Labour Intensive Techniques
2. Capital Intensive Techniques

The choice of technique for production depends on the availability of the resource in that nation, and hence resource allocation becomes a challenge.

3. For whom to produce?

This problem deals with determining the people who will be the final consumers of the goods produced. As the resources are scarce in an economy, it becomes difficult to cater to all sections of society.

It leads to the creation of a problem of choice in an economy as a good that may be in demand among a section, may not be in demand for another section of the society.

Such a situation arises due to the difference in income distribution among the population, which causes a change in buying behaviour.

Data collected by an investigator is called the secondary data. – False

The data collected by an investigator is called the primary data, whereas, the data that is already in existence being collected by any other investigator is known as secondary data.