Robert Murphy will teach Principles of Economics in the Fall of 2010 , an online class for all ages that will use his forthcoming book Lessons for the Young Economist. (Professor Murphy discusses his plans for the course in the above video and in his article Learn Principles of Economics Online.) MORE INFO


Nepal's parliament failed to elect a new prime minister for the seventh time on Tuesday, prolonging a stalemate that has held up vital public spending and threatened the fragile peace process.
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US President Barack Obama has urged Israeli and Palestinian leaders not to let the chance of a permanent peace deal "slip away". "This moment of opportunity may not soon come again," he said, pledging US support for the new negotiations.
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Even as India formally protested to China about the presence of its troops in Pakistan-occupied Kashmir, New Delhi is getting ready to engage the US on China.Indian officials, led by Gautam Bambawale, joint secretary.
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Traditional Economy is a system where the allocation of available resources is made on the basis of inheritance. As a deep-rooted economic theory with well-built social set-up, Traditional Economy generally makes use of prehistoric instruments and techniques.
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Elliott Wave International

The single most convenient untruth about the 2008 through 2010 financial crisis is that it was unforeseen. For two years policymakers have insisted "There was no way to know ahead of time" that the liquidity boom would come to a screeching halt. Back in November 2008, in fact, the usually tight-lipped Queen of England herself publicly described the turmoil of international markets as "awful" and openly asked a panel of experts from the London School of Economics "Why did nobody notice?"

Her Majesty is right: Most financial authorities did NOT notice the crisis before it was too late. Comedy Central's "The Daily Show with Jon Stewart" of all places provided the most poignant evidence: A March 2009 video montage shows executives and economists from the world's leading financial firms repeatedly forecasting continued upside strength in stocks, plus renewed bull market growth in financials -- right as debt markets came unhinged and the US stock market headed into a 50%-plus selloff.

KATHMANDU — Nepal's parliament will Tuesday make its seventh attempt to elect a new prime minister and end a stalemate that has held up vital government spending and threatened the fragile peace process.

The country has been without a government since June 30, when former prime minister Madhav Kumar Nepal stood down under pressure from the opposition Maoist party to pave the way for a new national unity government.

Since then the parties have been unable to agree on the shape of the new administration and six earlier votes in the 601-member parliament have proved inconclusive, with none of the candidates securing an overall majority.

The Maoists, who fought a decade-long civil war against the state before transforming themselves into a political party and winning 2008 elections, hold the largest number of seats in parliament, but not enough to govern alone.

Maoist leader and former warlord Pushpa Kamal Dahal, better know as Prachanda or "the fierce one", is standing against Ram Chandra Poudel, chairman of the second-largest party in parliament, the centrist Nepali Congress.

The Maoists have been negotiating fiercely with an alliance of four smaller parties to secure fresh support for their candidate since the last poll, held on Sunday, in which Dahal won 240 votes.

The parties, which represent Nepal's Madhesi ethnic minority, hold 82 seats between them -- enough to give the Maoists an overall majority.

But leaders of the four parties were said to be divided on whether to support the Maoist candidate ahead of Tuesday's vote, due to be held at 3:00pm (0915 GMT).

"Discussion are ongoing to make today's vote a success," said Krishna Bahadur Mahara, a senior Maoist party leader. "We expect our vote to increase, but it is not yet clear by how much."

Nepal's caretaker government has only limited powers and parliament has been unable to pass the annual budget, delaying much-needed public spending in one of the world's poorest countries.

Work on drafting a new constitution, already well behind schedule, has been halted, while negotiations on integrating the Maoist and national armies are also a standstill.
Factor which contribute to the production of goods and service are known as factor of production.Combination of different factors are needed while producing a goods.When cimbining different factors,the combination should be done in such away that the cost will be minimum.While producing any commodity ,there should be an active role of land,labour,capital and organization etc. are required.

The factors of production are the owners or the supplies of there factors.

Consumer 's surpius:-

The theory of consumer 's surplus was propounded by the famouse french engineer Arsene Jules Dupuit in the year 1844a.d. While constructing a bridge over a river the possibility of public surplus came into his mind .for the calculation of the possible surplus he gave the concept of consumer surplus.An engineer rather than an economist his concept remained in complete.

Marshall in his book"pure theory of domestic value "explained this theory very cleary under the topic 'consumer 's rent .In his book 'principles of economic he replaced consumer 's rent by the theory of consumer surplus .The credit for developing the theory of consumer 's surplus scientifically goes to marshall.

Law of substitution:-

The law of substitution is fully based upon the law of diminishing marginal utility.Thus,law was propounded by the famous Austriam economist Herman Hen Serich Gossen in the nineteenth century.For this reason this law is also known as second ;law of Gossen .But many economist have taken this law of Gossen as the law of substition.This law point out how a consumer can get manimum satisfaction out of given expenditure on different goods.We have presumed that every consumer spends his money income on different goods not in a haphazard number but with a clear idea of manimizing his satifactioin.

It is clearly that human wants are unlimited and the resource fulfulling these wants are limited.According to the law of diminishing marginal utility,if a consumer is to use all the available resource in the consumption of a single commodity then marginal utility,derived from every additional unit will decrease successively.

Law of diminishing marginal utility:-



The law of diminishing marginal utility shows the general behaviour.According to this law,if the units of commodity increase with a consumer the utility abtained from each additional units of the commodity will decrease respectively .When such utility decrease only the marginal utility decrease not the total utility .Thus,according to the law of diminishing marginal utility ,the total; utility increase at a deareasing rate.



human wants and necessities are unlimited ,however ,among these unlimited wants some of the wants can be fulfilled with in a specified time.the credit for discussing the law of diminishing marginal utility for the first timer goes to Henry Gossen", thus,this law is also known as the first law of Gossen.According to Gossen", as the consumer acquires more units of a commodity and as he reacher closer to satisfaction a level ,the unsatisfied level will decrease .



According to Marshall",The additional benifit which a person derives from a given increase in the stock of a things diminishes ,other things being

Economic; Theory of consumer 's behaviour :-utilities:-



Generally the characteristics of a commodity is known as utility. But in economic 'utility' is the capacity of a commodity and service to satisfy human wants.So ,consumer consume good and service according to their utility .That is ,they acquire satisfaction with goods and service .According to Marshall ",utility is the measure not of useful ness ,not of satifaction ,but of the intensify of desire."



Good and service fulfill human needs utility means the wants satisfaction power of a commodity.Utility is the subjects concept .Due to this ,different person gets different level of utility from the same commodity under the same situation .Thus,utility is introspective .People demand different commodity on the basis of utility .So ,the demand of commodity and service depend upon the expected utility.If excepted utility is high ;then the demand for such goods and service is also high.
That is want for any goods is more if it has high excepted utility.But it should not be misunderstand that otility is applicable only to beneficial (usefulness of) goods and service for e.g.,liquor is harmful for health ,but still there is a demand for it. But in economics the utility obtained from goods and service by a consumer is only looked upon,not the effect.

Elasticity of demand:-


The law of demand states that there is an inverse relation ship between price and quantity demanded.Besides this,demand for goods is also affected by factor such as,income of consumer season,advertisement expenditure,desire,tastes,fashion etc.The change in demand or direction of change in demand due to change in determinant factors is studies mnder the law of demand.But the law of demand cann't give the amount of change in the demand that occurs.

To fulfil this economists cournot and mill have given the concept of elasticity of demand.This concept of elasticity of demand has been restated scientifically by prof.Marshall ,"The elasticity or responsiveness of demand in a market is great or small according as the amount demanded increase much or little for a given fall in the price and diminishes much or little for given rise in price.

Thus ,the elasticity of demand shows the amount of change in demand due to change in any determinants of the demand such as price.In general ,the elasticity of demand refers to the price elasticity of demand.But this does n't mean the elasticity of demand is only related to price.

Economic Supply:-


Supply is create when the producer brings the goods product into the market for sale.As there is close relationship between demand and the price of goods there is also a very close relation ship between supply and the price of the goods.There is an inverse relation ship between demanded and price.But the relationship between supply and price is positive.That is there is positive relation ship between supply and the price of goods ;generally change in the price of goods change the supply of goods as well .That is the law of supply stater that there is a direct relation ship between price and supply.

Law of supply state that other things remaning the same ,any producer will supply more when the price is high and supply less when the price is low .According to the economist Meyers,"supply is a schedule of the amount of a good that would be offered for sale at all possible price at one instant ofr time .

Economic :law of demand;-


The credit for propounding the law of demand goes to Alfred Marshall,According to him there is a negative relationship between the price and the demand for any commodity .That is increase in price decrease the demand and decrease in price increase the demand for any commodity .Thus,the negative relation ship between price and demand for a commodity is known as law of demand.

According to marshall:-other thing remaning the same the amount demanded increase with a fall in price and diminishes with a rise in price.

Thus,the law of demand reflects the close relation ship between the price and quantity demand .That is when price of commodity is low the demand is high and when price of commodity is high the demand is less.So,the law of demand shows the change in the price of the commodity demanded ,but it does n't tell any thing about the change in the amount of quantity demanded due to any change in the price.

Economic:Demand;-


Generally demand means desires for prossessing goods and services .however,all sorts of desire
aren't demand in economics.Three thinks are required to make a demand for anythings:-
Desire,Ability to pay,willingness to pay.


If anyone desire to posses any goods or service but is n't able to pay for the goods such wants cann't be the demand.Similarly if she|he has the ability to pay but has no willingness to pay ,again the wants can't be the demand.

According to G.C.pandey:-Demand refers to the amount of a commodity or service which will be bought aaaat any given price per units of time.

According to M.H.spencer:- Demand is the quality that will be purchased of particular commodity at various prices .At a group time and place.

According to bober says :-by demand we means the various quantities of a given commodity or service which consumer would buy in one market in a given period of time at various price or at various income or at various prices of related goods.

Economic


The world 'economic 'or originated from greek word 'oeconomicus'.The meaning of the word is the science of household management.According to greek philosopher xenophon economics;is the science of household ,management .Likewise,the greek philosopher aristotledas divided economics into two parts.One is 'economy proper economicus and the other is the science of supply or 'chrematistic'. Ancient oriental economist kautilya as well has taken economics as thescience of nation management or the ruling of a nation. science of nation management orruling of a nation.
the
Medieual economists have taken economics as the science of wealth.After that Mercantilism took over the economics sector.Mercantilists took wealth and foreign trade as the base of economics.During that period nations of the world were after the wealth;they all had one motive that is collection of wealth.They all had the same slogan more wealth ,more power'.Around the mid eighteen century group of economicsts approached economics with different and n.micts ew thought.s

In this way ' According to J.R.hicks,"An economy or economic system may be defined as the co -operation of producer and worker to make goods and service to satisfy the wants of consumers.

Barack Obama urges Mid-East leaders to take opportunity


US President Barack Obama has urged Israeli and Palestinian leaders not to let the chance of a permanent peace deal "slip away". "This moment of opportunity may not soon come again," he said, pledging US support for the new negotiations. Mr Obama spoke the day before a new round of direct talks between Israeli PM Benjamin Netanyahu and Palestinian leader Mahmoud Abbas was due to begin. Earlier, he condemned the "senseless slaughter" of four Israeli settlers. They were shot dead by gunmen near the West Bank city of Hebron on Tuesday, with the armed wing of Islamist movement Hamas, which controls the Gaza Strip and opposes peace talks with Israel, saying it had carried out the attack. And in another attack, two Israelis were shot and wounded on Wednesday in the West Bank at Rimonim Junction, near the Jewish settlement of Kochav Hashahar and east of the city of Ramallah. The victims were a woman and a man, Israeli officials said, adding that the man was in a serious condition in hospital. Israeli police spokesman Micky Rosenfeld blamed Palestinian militants for the attack. 'Partners in peace' Mr Obama spoke at the White House on Wednesday evening after meetings with Mr Netanyahu, Mr Abbas, Jordan's King Abdullah II and Egyptian President Hosni Mubarak. His remarks came on the eve of the first direct negotiations between Israeli and Palestinian leaders in 20 months, which he said were "intended to resolve all final status issues". Mr Obama said the goal of the talks, which are expected to last a year, was a permanent settlement that ended the Israeli occupation that began in 1967 and resulted in an independent, democratic Palestinian state existing peacefully beside Israel.He said the US could not impose peace on the two parties, and that the US could not want peace more than them. And he praised Mr Abbas and Mr Netanyahu as leaders "who I believe want peace". But he warned of "extremists and rejectionists who, rather than seeking peace, are going to be seeking destruction." In remarks ahead of a Wednesday evening dinner with the Arab leaders, Mr Netanyahu described Mr Abbas as his "partner in peace", and said he would not allow the latest attacks to "block our path to peace". "Our goal is to forge a secure and durable peace between Israelis and Palestinians," he said. "We do not seek a brief interlude between two wars. We do not seek a temporary respite between outbursts of terror. We seek a peace that will end the conflict between us once and for all." Speaking next, Mr Abbas condemned attacks on Israelis and urged an end to bloodshed. He also called for a freeze in Jewish settlement construction in the West Bank, and said it was time to end the Israeli occupation of Palestinian land that began in 1967. "We will spare no effort and we will work diligently and tirelessly to ensure these negotiations achieve their cause," Mr Abbas said. King Abdullah said the group needed Mr Obama's "support as a mediator, honest broker and a partner". "If hopes are disappointed again, the price of failure will be too high for all," he said

India to discuss China with US later this month

NEW DELHI: Even as India formally protested to China about the presence of its troops in Pakistan-occupied Kashmir, New Delhi is getting ready to engage the US on China.Indian officials, led by Gautam Bambawale, joint secretary, East Asia, in the MEA, will be in Washington later this month for the second round of Asian strategic dialogue with Kurt Campbell, US assistant secretary of state for East Asia. While the dialogue will largely cover the two countries approach to Asian policies and strategies, China is likely to dominate the talks. The first round of the talks was held in New Delhi in April, where India and the US for the first time shared perceptions and assessments about China, followed by other countries like Myanmar.
A lot has happened with China since then. Both India and the US have had several run-ins with China on national security issues all of which are likely to be discussed. In July, the US barged its way into the South China Sea debate at the Asean conference, what went unnoticed was that India joined 11 other countries to openly declare that the South China Sea should remain open for international navigation. It was an important statement, and it was made at the Asean Region Forum "retreat" meeting by MoS external affairs Preneet Kaur. It was made in response to China's declaration that the South China Sea would to be an integral part of Beijing's "core" interest, along with Tibet and Taiwan.
India retains a strong interest in keeping sea lanes open in the South China Sea. Apart from helping secure energy supplies for countries like Japan and Korea, India has the unique distinction of shipping oil from Sakhalin to Mangalore through this sea route. For China to maintain control over these waters would be very difficult for India to accept.In the past few months, the US has upped the ante with China on the national security front -- its naval exercises with South Korea in the Sea of Japan raised hackles in Beijing (even though the US refrained from conducting these exercises in the Yellow sea, which would have really riled the Chinese). China has also stopped defence exchanges with the US, after the Obama administration carried out arms sales with Taiwan.China has been hurting India's own core interests lately, with the matter coming to a head when Beijing refused to allow the visit of the Indian army's GOC-in-C northern command because his command included Jammu & Kashmir.There is a growing perception in India that the Chinese military establishment is playing a different foreign policy script than the foreign office in Beijing. This perception has been strengthened over the past couple of years, which makes India's diplomacy on China a lot more difficult.Read more: India to discuss China with US later this month - India - The Times of India http://timesofindia.indiatimes.com/india/India-to-discuss-China-with-US-later-this-month/articleshow/6487290.cms#ixzz0yXtj5LHt