Consumer's equilibrium is a situation when he spends his given income on the purchase of one or more commodities in such a way that he gets maximum satisfaction and has no urge to change this level of consumption, given the prices of commodities. (B) Condition Of Consumer Equilibrium In Case Of Single Commodity. A consumer is said to be in equilibrium when he maximizes his satisfaction, given his money income and prices of two commodity. He attains equilibrium at that point where the slope of IC is equal to the slope of budget line.

A consumer is said to be in equilibrium when he maximizes his satisfaction, given his money income and prices of two commodity. He attains equilibrium at that point where the slope of IC is equal to the slope of budget line.  The state of balance achieved by an end user of products that refers to the amount of goods and services they can purchase given their present level of income and the current level of prices. Consumer equilibrium allows a consumer to obtain the most satisfaction possible from their income.

When a consumer's income increases, his budget line shifts parallel and upward and when his income decreases the budget line shifts downward. As the income changes, a new equilibrium is established and the consumer moves from one equilibrium point to another. Therefore, we can say that consumers equilibrium is achieved when the price line is tangential to the indifference curve. Or, when the marginal rate of substitution of the goods X and Y is equal to the ratio between the prices of the two goods.

(i) Imputed salaries of family members will be included in national income.

(ii) Interest will not be included in national income because borrowings by general government is treated for consumption purposes.

When the government tries to sell its share in several public sector companies, a process is called disinvestment.

A government budget is an annual financial statement showing item wise estimates of
expected revenue and anticipated expenditure during a fiscal year.
2. Budget has two parts:
(a) Receipts; and (b) Expenditure.
3. Objectives of budget:
(a) Activities to secure a reallocation of resources:
(i) Private enterprises always desire to allocate resources to those areas of production where profits are high.
(ii) However, it is possible that such areas of production (like production of alcohol) may not promote social welfare.
(iii) Through its budgetary policy the government of a country directs the allocation of resources in a manner such that there is a balance between the goals of profit maximisation and social welfare.

Short-term planning evaluates your progress in the present and creates an action plan to improve performance daily. However, long-term planning is a comprehensive framework that comprises of goals to be met within a four- to five-year period.

Here are two key differences between short-term and long-term planning:

1. Scope. Ideally, a short-term goal should tie into a long-term goal. However, daily adjustments are required to ensure that you're working efficiently to meet your goals and that operations are smooth. Thus, the scope of short-term planning may change daily compared to long-term planning, where their goals are finite after they're discussed with key employees.
    
2. Execution. The execution of short-term planning depends on current operations that can determine if an organization is completing projects. The execution of long-term planning is based on if short-term goals can be met. For example, if your long-term goal is to hire more 50 more staff members within the next four to five years, you can set short-term goals for which positions need to get filled quickly.

• (i) To evolve a shared vision of national development priorities sectors and strategies with the active involvement of States in the light of national objectives
• To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation
• To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government
• To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy
• To pay special attention to the sections of our society that may be at risk of not benefiting adequately from economic progress
• To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy. The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections
• To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think tanks, as well as educational and policy research institutions.
• To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.
• To offer a platform for resolution of inter-sectoral and inter­ departmental issues in order to accelerate the implementation of the development agenda.
• To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders

In an economy, equilibrium level of income and employment is determined when AD (Aggregate Demand) is equal to AS (Aggregate Supply). According to Keynes, AS may be assumed to be elastic in an economy where full employment (of resources) is yet to be achieved. Accordingly, AD becomes the principal determinant of equilibrium level of income.

In the following figure, AD represents Aggregate Demand curve and 45° line is the line of reference, where AS =Y. Equilibrium level of income Y is determined at point E, where AD = AS. Prior to point E, Aggregate Demand exceeds Aggregate Supply, leading to an increase in level of income up to point E. Beyond point E, Aggregate Supply exceeds Aggregate Demand leading to a fall in income back towards point E.
It is only when AS = AD, that the equilibrium is struck. Because the equality between AS and AD implies that the desired level of output in the economy (as indicated by AS) is exactly equal to the desired level of expenditure (indicated by AD) in the economy. So that, the entire output as planned by the producers (during an accounting year) is purchased by the buyers. There are no undesired or unwanted inventories (stock of goods) with the producers.

TRADE POLICY

This strategy is technically known as 'import substitution'. Import substitution means substituting imports with domestic production. Imports were protected by the imposition of tariff and quotas which protect the domestic firms from foreign competition.

National Income (NNP_FC) = Rs.850 crores

GDP_MP = Rs.1100 crores

Net factor income from abroad = Rs.100 crores

Net indirect taxes = Rs.150 crores

NNP_FC = GDP_MP + Net factor income from abroad − Depreciation − Net indirect taxes

Putting these values in the formula,

850 = 1100 + 100 − Depreciation − 150

⇒ 850 = 1100 − 50 − Depreciation

⇒ 850 = 1050 − Depreciation

⇒ Depreciation = 1050 − 850 = Rs.200 crores

So, depreciation is Rs.200 crores.

When highly qualified, trained and skilled people migrate from a their home country to another country it is regarded as brain drain.

People generally migrate for better job opportunities and higher income. This leads to loss of quality people in the home country. 

For example engineers migrating from India to the US for better opportunities is a brain drain for India. 

The ratio of change in consumption (C) to change in income (Y) is known as marginal propensity to consume. It indicates the proportion of additional income that is being spent on consumption.
MPC=ΔCΔY
The sum of MPC and MPS is equal to one. It can be proved as under: We know: ΔY = ΔC + ΔS
Dividing both sides by AY, we get,ΔY/ΔY=ΔC/ΔY + ΔS/ΔY or 1=MPC+MPS
[ΔY/ΔY=1; ΔC/ΔY =MPC ΔS/ΔY=MPS]
MPC + MPS = 1 because total increment in income is either used for consumption or for saving.

1. It accepts deposits. A commercial bank accepts deposits in the form of current, saving and fixed deposits. It collects the surplus balance of the individuals and firms and finances the temporary needs of commercial transactions. The first task is, therefore, the collecting of the savings of the public. This the bank does by accepting deposits from its customers. Deposits are lifeline of banks. Deposits are of 3 types as under.
(i) Current account deposits. Such deposits are payable on demand and are therefore, called demand deposits. These can be withdrawn by the depositors any number of times depending upon the balance in the account. The bank does not pay any interest on these deposits but provides cheque facilities. These accounts are generally maintained by businessmen and industrialists who receive and make business payments of large amounts through cheques.
(ii) Fixed deposits (Time deposits). Fixed deposits have a fixed period to maturity and are referred to as time deposits. These are deposits for a fixed term, i.e., period of time ranging from a few days to a few years. These are neither payable on demand nor they enjoy cheque facilities. They can be withdrawn only after the maturity of the specified fixed period. They carry higher rate of interest. They are not treated as a part of money supply. Recurring deposit in which a regular deposit of an agreed sum is made is also a variant of fixed deposits.
(iii) Saving account deposits. These are deposits whose main objective is to save. They combine the features of both current account and fixed deposits. They are payable on demand and also withdrawable by cheque. But bank gives this facility with some restrictions, e.g., a bank may allow five or seven cheques in a month. Interest paid on saving account deposits is lesser than that of fixed deposit.