Economy Notes for DFCCIL- Types of Demand, Goods & Markets

For all the aspirants appearing for the DFCCIL Executive and Junior Executive (Operations & BD) Exam, we have included the notes for Economics in this guide. This is an important exam as thousands of aspirants apply to grab a job in this field. The exam syllabus includes General Knowledge, Numerical Ability, Logical Reasoning, General Science, Economics & Marketing, History of Indian Railways and DFCCIL, Customer Relations, etc. Economics is an important subject as the exam includes six questions from this topic. We have provided detailed Economy Notes for DFCCIL to help our readers get an excellent score in the exam. Read further to score 100% marks in Economics in DFCCIL Exam.

DFCCIL Economy Notes 

What do you mean by Economics?

• Economics is the social science that studies how society produces, manufactures, distributes, utilizes, and/or consumes its resources.
• It deals with several groups of people as organizations, businesses, governments, and more. 
• It studies human behaviour and tendencies while driving a finance-centric and resource-centric activity.

Divisions of Economics

Economics is broadly classified into two types:

• Microeconomics
• Macroeconomics

Micro Economics

Microeconomics studies individuals (consumers or producers).

What is the Production Possibility Curve (PPC)?

It shows the combinations of two goods, given all the resources and technology.

What is Marginal Opportunity Cost (MOC)?

MOC is the cost or amount of a good lost to produce the alternative.

What is the Marginal Rate of Transformation (MRT)?

MRT is the ratio of the amount of good sacrificed to the amount of good gained.  

Demand

• The amount of a product that consumers are able and willing to consume at a particular time is called demand.
• Demand Curve is the graphical representation of the Demand Schedule (or Demand Table).
• Individual Demand is the demand generated in an economy because of an individual. 
• Several factors like consumer’s income, consumer’s choice, price of related goods, foreseen future price, and commodity price affect demand.
• Factors like Increase in Consumers Income, Increase in price of alternative goods, decrease in the price of related goods, and change in consumer preference can increase demand, and vice versa can decrease demand.

Types of Goods

• Substitute Goods are alternative options to certain goods such as Tea and Coffee.
• Complementary Goods are commodities related to each other like laptops and chargers.
• Normal Goods are goods used in daily activities that are relative to the consumer’s income. 
• Inferior Goods are inversely proportional to the income level of consumers. 
• Giffen Goods are those inferior goods that are consumed more with the price increase. These violate the Law of Demand.

Types of Demand

• Cross Demand: Demand that depends on the price of relative goods.
• Income Demand: Demand that is generated due to or relative to income.
• Direct Demand: Demand that is generated directly by the consumer.
• Derived Demand: Demand generated for other goods because of the Direct Demand.
• Joint Demand: Demand for more than two goods to fulfil a specific need.
• Composite Demand: Demand of a single product for different purposes.

Law of Supply

• Supply is the capacity and interest of a producer to circulate produced goods for sale in the market.
• The Law of Supply establishes a link between price, production, and supply of a commodity. 

Market

• A place where buyers and sellers meet to exchange goods and services (in both monetary and non-monetary forms) through a sale-purchase mechanism is known as a Market.
• Market Structure outlines the number of organizations, types of products, and established competition among the organizations.

Types of Markets

• Perfect Competition Market: The number of sellers and buyers is high, and the market sees uniformity across product price and type. 
• Monopoly Market: When one seller and their price dominate the market.
• Monopolistic Market: When several organizations sell very closely linked but differentiated products.
• Oligopoly Market: Where the number of consumers is higher against a fair number of seller organizations.

Macro Economics

Macroeconomics studies the groups of people, organizations, the umbrella of industries, etc.

Gross Domestic Product (GDP)

It is the final prices of all the goods and services produced within a territory (mainly country) in a specific financial year. 

Gross National Product (GNP)

• It measures the monetary values of the final goods and services produced annually with a net counter plus foreign factor. 
• Formula = GDP Net Factor Earning from Foreign Countries/Investors

Net Domestic Product (NDP)

• It is the difference between Net National Product (NNP) and Net Factor Income (NFI). 
• Formula = GNP – (Depreciation NFI)

Net National Product (NNP)

NNP is the total monetary value of the goods and services produced within a country or any territory produced annually at a certain price.

Inflation

A scenario where the purchasing power of a consumer decreases due to a haphazard increase in the prices of basic daily goods and services is known as inflation.

Types of Inflation

• Comprehensive Inflation
• Sporadic Inflation
• Open Inflation 
• Suppressed Inflation
• Hyperinflation
• Deficit Inflation
• Credit Inflation
• Scarcity Inflation
• Demand-Pull Inflation
• Cost-Push Inflation

Conclusion

We have provided the detailed DFCCIL Economy notes to help our readers score well in the exam. We also advise all aspirants to be focused and study hard to ace this exam. They may also refer to some excellent reference books, previous year’s papers, and online mock tests to brush on their concepts. That way, they will definitely achieve a good score in this highly competitive exam. We wish you Luck!

• 7 May 2024 Current Affairs in English
• Weekly Current Affairs 2024, Download Free PDF
• 6 May 2024 Current Affairs in English
• Chief Minister Vayoshree Yojana 2024 Features, Benefits and Eligibility
• Sukanya Samriddhi Yojana 2024 Features, Benefits and Eligibility