Economics Concepts and Theories

The resources are the substances which can be harnessed for the production of energy. The value of the resource depends on the quantity and the quality. The quantity describes the amount of the resource which is present on the Earth and available for use. The quality is the form in which the resource can is present and needs to be transformed so that it can be used. The metals are obtained as ores and should be purified to pure quality for use. The value depends on the type and the need of society. When there is more population residing in a society, the requirement will be more and the value of the resource will increase. 

The economy of India is characterised as a developing market economy. It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power parity.

• Monetarist policies involve controlling the economy by limiting how much money it is available to spend.
• Rising prices, high unemployment and slow economic growth were some issues in Britain when Margaret Thatcher became the Prime minister. She was determined to reverse this with her monetarist policies.

Power of commodity which can command to exchange itself with the other good is called the Value of product. Usually a product is valued by the money. And this money with which a product is valued is called its price.

Classical, Marshallian, and Australian approaches are recognized frameworks in economic pricing theory. Neo-classical is a broad school of thought rather than a specific 'approach to pricing' in the context of commodity pricing literature.

In a capitalist economy, personal gains are given more preference than social welfare. Therefore, allocating of resources takes place on the basis of what value it will yield after production and this done through prices.

The demand and supply of a commodity prevails in the market, so if their are changes in the price of the commodity due to change in its demand and supply in the market then it is said that market influences the price rate in the economy.

'Backwash effect' was firstly introduced by Gunnar Myrdal. He explained that the growth of one region may hamper the growth of other region from where the resources are used. 

Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. By convention, these applied methods are beyond simple geometry, such as differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, and other computational methods.

The common Agricultural policy is the one of the lasting polices of the EU. It is focused on increasing agricultural production, providing certainty in food etc.

Laissez-Faire is the French term for free trade. It is a system in which the government doesn't interfere much in the economy of the country and leaves its functioning to the market. Thus, Laissez-Faire is the right answer.

The classical economist advocated and proposed the concept of balanced where according to them, a balanced budget refers to a budget where the government expenditure and government revenue are equal and there is no surplus budget or deficit budget in the economy.