Fin concept

Theory of Rationalization Classical economics stands on the radical assumption of rationalization. so let us introduce to the meaning and process of rationalization in economics. Rationalization Rationalization means in every situation/decision making, person use his logical / reasoning process which is observed in his behavioral patent. Rationalization means taking appropriate decision with the help of logical / reasoning process. Rationalization of consumer depends on following part Consumer taste and Preferences Consumer's experience in similar situation Consumer logical/reasoning process. Consumer's need / wants Role of rationalization in consumer behavior: Every consumer base theory in economics are based on rational behavior. Hence classical theory of consumer utility, demand, supply is stand valid if rationalization is is exist. Following theories are assume the rational consumer behavior: Consumer wants more satisfaction o...

The Theory of Wants 1. Definitions of Wants: Wants are unsatisfied willingness or needs of human to have something in life. Wants is willingness to buy or have something in life and which they may or may not capable of being satisfy out of available resources. So, an unsatisfied willingness or needs of person is wants in economics. 2. Function of wants: Wants is linear function of satiable wants and insatiable wants. Wants {W}= function {f} (Satiable Wants{SW} & Insatiable Wants {IsW}) W = f (SW + IsW) Out of balance available fund, how much needs you can satisfy that's know as satiable wants. balance unsatisfied wants are insatiable wants. 3. Magnitude of insatiable wants: It is an percentage of insatiable need to the function total wants. Magnitude of insatiable wants {Mi} = (Insatiable Wants / Total Wants {TW})*100  Mi = IsW/TW*100 If you required the 10 kg of wheat for better nutrition of your family bu...

1. Effect of injection of E-Money. People are now moving towards the digitization of business. To compete in the future business market we need to transact with business partner quickly and hence electronic money pays wider role in transaction. while moving towards the development, turbulence of e-money affect the way of doing business. This turbulence increase the movement of money faster and also create new threat of cyber crime in financial market. 2. E-Money with special characteristics: E-money in future may have special characteristics. a. Different denomination. b. One currency for globe. c. More secured. 3. Reduction of impurity of money: Injection of e-money reduce the money without owner. Impurity of money means Money without owner. centralization of money through financial channel reduce the % of impurity in money. % of Impurity of money = (Non-owner money/Total money in economy)*100 Hence, Money in future market will have much wider role in econo...