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Data Collection, Sampling and its Dimensions

Concept of Data and Data Collection

Data are the numerical facts that result from the counting or enumerating process. The first stage of any statistical investigation is data collection, and the main challenge is to gather data related to the subject. The term “investigator” refers to the person who runs the statistical investigation. “Informants” or “respondents” are the people from whom the data or information is gathered, and “statistical units” are the things that are counted.

The systematic process of counting or enumerating the items is known as data collection. Both quantitative and qualitative data are possible. Quantitative data is any information that can be counted naturally.

data_collection

Qualitative data are those that reflect an individual’s character. The investigators can decide how to proceed with the investigation based on their gathered data. The outcome would be accurate if the data were collected without bias or error and incorrect otherwise. As a result, the investigator should exercise caution when gathering data.

According to Creswell (2014)data collection is the process of gathering information or data for research purposes. This process can involve various methods, including surveys, interviews, observations, and document analysis.

Bryman (2016) defines data collection as the systematic gathering of information from various sources using various research methods such as questionnaires, interviews, and observations.

Yin (2018) describes data collection as the process of systematically gathering information from various sources to answer a research question. This can involve a variety of methods, including interviews, observations, and document analysis.

Patton (2015) defines data collection as the process of gathering information or data through various methods such as interviews, surveys, focus groups, and observations. This information is then analyzed to understand patterns, trends, and relationships.

Denzin and Lincoln (2018) describe data collection as the process of gathering and recording information for research purposes using various techniques such as interviews, observations, and surveys. The data collected is then analyzed to draw conclusions and answer research questions.

To summarize, data collection is the systematic and purposeful gathering of information or data for research purposes using various methods and techniques.

Prerequisites of Data collection

The methods used to collect data vary. The nature, goal, and scope of the investigation all influence the data collection strategy. False data will produce inaccurate and deceptive results. Consequently, the following factors should be taken into account during the data collection process:

  • The objective of the inquiry: The survey’s goals should be clearly stated before data collection to guarantee accurate information. The information gathered could be completely pointless or even tend to obscure the issue if there is no clear objective.
  • Scope of inquiry: The scope of the investigation should be precisely defined after the objective is established. The area from which data is to be collected is called the scope. If the inquiry’s parameters are not established, it may result in the collection of useless data, wasting time and resources.
  • Find Information Source: After deciding on the goal and scope of the investigation, the next step is to find the source of information. Data sources can be both internal and external. Internal data is gathered from an organization’s internal records and is related to the operation of that organization. External data is obtained from an outside source or through the intermediary of an outside agency. The information gathered from outside sources could be primary or secondary. The use of either or both will be determined by the objective and scope of the investigation. Statistical research is typically conducted when the sources of information are outside of the organization.
  • Method of data collection: The data can be collected using a census or sampling. Whether an investigator uses a census or a sampling method depends on the situation, the goal, the scope, the accuracy, the resources needed, and the amount of time they have.
  • Units of data collection: Before starting to collect data, the unit of measurement or counting must be clearly defined. The use of range and incorrect units results in the collection of misleading statistical data.
  • Degree of accuracy: It is impossible to achieve 100% accuracy in any statistical investigation. As a result, the desired accuracy level must be determined before collecting data. The desired level of accuracy aids in determining the method of data collection. The purpose and scope of the investigation will determine it.
  • Types of inquiry: The inquiry to be used should be decided before collecting data. The types of inquiries used in statistical research are as follows.
  1. Direct and indirect, 
  2. Official, semi-official, or non-official, 
  3. Original or repetitive,
  4. Confidential or open, and
  5. Regular

Types of data

Based on Sources Data, there are two types of data:

1) Primary data

Primary data is information gathered for the first time by an investigator or an agent of an investigator. The primary data are unique, and their main purposes are to reduce the complexity of an investigation and provide accurate information. These data types come from surveys, institutions, government departments, research teams, and individuals.

For example, suppose an investigator wants to study a fixed-income generating group’s household income and expenditure. In that case, he or she will collect data from the specified field, i.e. the household. Similarly, primary sources are data collected for the first time based on objectives.

Problems in collecting primary data

In collecting primary data, the following problems are to be faced:

  • Information may not be available on the spot, or he/she may refuse to answer or provide an incorrect answer.
  • Illiterate informants may not understand the questions, making it difficult to obtain accurate information from them. Because most respondents are illiterate, the mailed questionnaire method has a high rate of non-response, and informants may not return the questionnaire or send an incomplete one.
  • Informants may not provide accurate responses to sensitive questions.
  • Enumerators may be deceitful. They may complete the questionnaire without conducting interviews with the respondents. In addition, an untrained or inexperienced enumerator cannot collect unbiased data.

Methods of collecting primary data

The different methods of collecting primary data are as follows:

  1. Direct personal interview,
  2. Indirect oral interview,
  3. Information through correspondents,
  4. Mailed questionnaire method, and
  5. A questionnaire was sent through enumerators.

a. Direct Personal Interview

In this method, the investigator goes into the field and makes inquiries to collect data directly from respondents. The investigator asks the respondents questions about his investigation and collects information. For example, if a person wants to inquire about economics marks obtained by Grade 11 students, he would go to school, contact the students, and obtain the desired information.

Merits

  • In general, this method ensures greater accuracy.
  • This method typically elicits a higher level of response from the respondent.
  • Aside from the required information, the investigator can collect various supplementary data.
  • You can get the right information from them if you talk to them in their native language or at their level of education.

Demerits

  • This method usually requires more time, labor, and money.
  • This method does not apply to a broader field of study.
  • There is a possibility of receiving biased information

b. Indirect oral interview

Getting correct information about drinking, smoking, and gambling is impossible. In these situations, the respondent may refuse to answer correctly or give incorrect information. So, to get more accurate information about him, questions are asked of third parties who know him, like friends, relatives, neighbors, and so on. The term “witness” refers to this type of third party.

Merits

  • This method is appropriate for a wide range of data collection tasks.
  • This method requires less time, money, and labor.
  • This method is free of the investigator’s and the informant’s bias.
  • The opinion and suggestions of experts can be solicited using this method.

Demerits

  • The investigation’s findings could be skewed.
  • Witnesses may colorize the information based on their interests.
  • A third party or witness may be unwilling to provide information about the respondent.

c. Information through correspondents

In this method, the investigator or agency has local correspondents in various parts of the field of investigation. These correspondents gather information and send it to the headquarters, where it is processed. Newspapers, radio, and television commonly use this method.

Merits

  • This method is useful when the subject matter is extremely broad.
  • This method is cost-effective and time-saving.
  • Information is obtained on a regular and convenient basis.

Demerits

  • The results of this method are not very reliable.
  • This method of gathering information may not produce consistent results.

d.  Mailed Questionnaire

In this method, a list of questions (known as a questionnaire) is prepared and mailed to various informants with a request for a prompt and thorough response within a specified time frame. The questionnaire contains questions and space for responses. Respondents complete the questionnaire and return it to the investigator.

Merits

  • This method is cost-effective in terms of money, labor, and time.
  • This method is preferable when the scope of the investigation is broad.
  • The results are free of the investigator’s bias.

Demerits

  • When the informants are illiterate, this method cannot be used.
  • This method has a high rate of non-response.
  • The questionnaire may not be filled out completely or carefully.

e. A questionnaire sent through enumerators

The schedule is delivered to the informants via trained enumerators in this method. The enumerator contacts the informants to obtain responses to questionnaire questions and fills them out in their handwriting.

Merits

  • It is useful when dealing with illiterate informants.
  • There is a very low rate of non-response.
  • The information received is accurate.

Demerits

  • This method requires more time, money, and labor.
  • The enumerator may have personal biases.
  • Variations may occur in the information obtained from different enumerators.

2. Secondary data

Secondary data is information that someone gathers for their purposes but that another person or organization uses. As a result, what primary data for one person may be secondary data for another? So, secondary data are data that were collected in the first place but came from sources that were published or not published. For example, the records published by the Central Bureau of Statistics, Nepal Rastra Bank, NGOs, INGOs, and other official publications are primary data for their use but secondary data for others.

Problems in collecting secondary data

In collecting secondary data, the following problems are to be faced:

  • Data that has not been published can be difficult to obtain.
  • Data obtained from published or unpublished sources may or may not be suitable and reliable for further investigation.
  • During the investigation, the required information may not be published.
  • Because of the limitations of primary data, data obtained from secondary sources may be unreal.

Sources of Secondary Data

There are two sources of secondary data:

  • Published sources
  • Unpublished sources

A) Published Sources

The main published sources of secondary data are as follows:

a. Government Publications

The government publications are listed below: 

  1. The Central Bureau of Statistics publishes statistical pocketbooks,
  2. statistical yearbooks, population monographs of Nepal, and other publications (CBS),
  3. Economic Survey published by Ministry of Finance,
  4. The National Planning Commission’s Plan document and various publications from various ministries, departments, and governmental offices.

b. Semi-government Publications

The semi-governmental publications in Nepal are as follows:

  1. Nepal Rastriya Banijya Bank, Nepal Bank Limited, and Nepal Industrial Development Corporation (NIDC),
  2. Nepal Agriculture Research Centre (NARC), Industrial Service Centre, Nepal Food Corporation, and other corporations have published reports.
  3. Private or Non-government Publications: The private or non-governmental publications in Nepal are as follows:
  1. The report published by research institutes and universities, 
  2. The report published by the Nepal Chamber of Commerce, and Industry
  3. Reports of different companies and financial reports published by prestigious journals.
  4. International Publications: Publication of international agencies provides various statistical information, which are as follows:
  • Publication Yearbook of World UNO Development such as the UN Report Statistical (WDR), Year Human Book, Demographic Development Report (HDR), etc ., and 
  • Publications of other international bodies such as ILO, IMF, ADB, etc.

B) Unpublished Sources

The unpublished data are also used for statistical investigations. The unpublished sources of data are as follows:

  • Data collected by various government departments and offices, patient hospitals, records, Reports from private organizations, businesses, industries, etc.
  • School, college, and university administration records, as well as Students’ research projects, such as master’s and doctoral theses.

Precautions in the use of secondary data

Before using secondary data, the investigator should think carefully about whether or not it is useful. As a result, when using secondary data, the following precautions must be taken.

  • Reliability of data: The reliability of secondary data should be investigated when using it. The previously collected and processed data should be reliable regarding the survey’s objective, the method of data collection, the agency conducting the survey, the representatives of sample size and sample design techniques, the degree of accuracy desired, the data collection period, and so on.
  • Suitability of data: The available secondary data may or may not be useful for this investigation. The nature, goal, and scope of the investigation are used to decide if the secondary data are useful for the current investigation. If the nature, goal, and scope of the available data are the same as the current investigation, then the data is said to be suitable. If they are not, then they are not. For example, data collected for the study of urban household income is insufficient for the study of rural household income.
  • Adequacy of data: Secondary data must be enough, reliable, and right for the current investigation. If the scope of the first inquiry is much smaller or larger than the scope of the current inquiry, the data are not enough. For example, data on household income in Kathmandu Valley is insufficient to study the entire country. Another factor in determining data sufficiency is time. If only secondary data on agricultural production for the last four years is available, it will be insufficient to study the trend of agricultural production for the last ten years.

Techniques of Data Collection

a. Census Method:

The census method is a way to collect information from every unit of the population being studied. For example, to study the annual income of a country’s households, we collect data on the annual income of every household. This kind of investigation is only useful when the study area is small, and each unit needs to be looked at in depth.

Instead of choosing a sample, the census method collects information from each person in the population. A census collects information from every individual or unit in the target population. For example, a census of a country’s population would entail gathering data from every single person living within its borders. Because it provides information on every member of the population, the census method is considered the most accurate and comprehensive method of gathering data about a population.

When the population is small, or the cost of collecting data from every individual is feasible, this method is typically used. A census may be legally required in some cases, such as for government purposes or social, economic, or health-related surveys. However, the census method can be costly and time-consuming, particularly in large populations. Collecting data from every member of a population necessitates a significant investment of time, money, and personnel.

Furthermore, some population members may be unwilling or unable to participate, resulting in incomplete or biased data. Furthermore, the sheer volume of data collected can make accurate analysis and interpretation difficult. As a result, the census method may not always be feasible or practical for research purposes.

b. Sample Method (Sampling):

The ‘sample’ is a small subset of the population that contains a finite number of elements and can represent the population’s characteristics. The number of elements or objects in a sample determines the sample size. The method or process of data collection in which data is collected from a representative sample of the entire population is known as sampling. Because only a small portion of the population is studied, this method is less expensive than the census method.

Methods of Sampling

  1. Simple Random Sampling:

In simple random sampling, every member of the population has an equal chance of being selected for the sample. The selection is made randomly, without any bias or pattern.

Simple random sampling is a method of selecting a sample from a population in which each member is equally likely to be selected. The selection is made randomly, without any bias or pattern.

The formula for sample size:

n = (z2 * p * q) / e2

Where,

n = sample size

z = z-score based on the desired level of confidence (e.g. 1.96 for 95% confidence)

p = estimated proportion of the population with the characteristic of interest

q = 1 – p (complement of p)

e = margin of error

Merits:

  • Easy to implement
  • Each member of the population has an equal chance of being selected
  • Free from bias

Demerits:

  • Requires a complete list of the population
  • It may not be representative of the population if the sample size is too small
  1. Stratified Sampling:

Stratified sampling involves dividing the population into subgroups or strata based on certain characteristics such as age, gender, or income. Samples are then randomly selected from each stratum in proportion to the stratum’s size.

Stratified sampling involves dividing the population into subgroups or strata based on certain characteristics such as age, gender, or income. Samples are then randomly selected from each stratum in proportion to the stratum’s size.

The formula for sample size:

n = (N * p * q * DEFF) / [(N – 1) * e2 + p * q * DEFF]

Where,

n = sample size

N = population size

p = proportion of the population in the stratum

q = 1 – p (complement of p)

DEFF = design effect (accounts for the effect of clustering)

e = margin of error

Merits:

  • Ensures each subgroup is well represented in the sample
  • Allows for comparisons between subgroups

Demerits:

  • Requires prior knowledge of the population to identify relevant subgroups
  • It may be costly and time-consuming if there are many subgroups
  1. Cluster Sampling:

Cluster sampling involves dividing the population into clusters or groups based on characteristics such as geography or administrative division. Samples are then randomly selected from each cluster.

Cluster sampling involves dividing the population into clusters or groups based on characteristics such as geography or administrative division. Samples are then randomly selected from each cluster.

The formula for sample size:

n = (N * n_c * DEFF) / [(N – 1) * e2 + n_c * DEFF]

Where,

n = sample size 

N = population size 

n_c = average cluster size 

DEFF = design effect (accounts for the effect of clustering) 

e = margin of error

Merits:

  • It can be more efficient than simple random sampling when the population is geographically dispersed
  • Useful when there is a clear geographic or administrative structure to the population

Demerits:

  • Requires accurate information on the clusters
  • This may lead to a less diverse sample if the clusters are homogeneous
  1. Systematic Sampling:

Systematic sampling involves selecting population members based on a predetermined sequence at regular intervals. Systematic sampling involves selecting population members based on a predetermined sequence at regular intervals.

The formula for sample size:

n = N / (1 + N * e2)

Where,

n = sample size

N = population size

e = margin of error

Merits:

  • Simple and easy to implement
  • Requires a complete list of the population
  • It can be more efficient than simple random sampling if the population is large and the list is available

Demerits:

  • It can introduce bias if there is a pattern in the list related to the variable being studied.
  • May miss important subgroups if the list is not exhaustive
  1. Convenience Sampling:

Convenience sampling is a non-probability sampling in which individuals are selected based on availability and accessibility. The sample is not randomly selected and may not represent the population. For example, a researcher might survey students in a particular classroom because they are easily accessible without considering whether they are representative of the broader student population.

Convenience sampling is quick, easy, and inexpensive, but it is prone to bias and may not provide valid or reliable results. As such, it is often used in exploratory research or pilot studies, where the focus is on generating ideas and hypotheses rather than testing them.

There is no formula to find the sample size of convenience sampling as the sample is not randomly selected or representative of the population.

Merits:

  • Quick and easy to implement
  • Useful when the population has difficulty access

Demerits:

  • Prone to bias because the sample is not representative of the population
  • Results may not be generalizable to the population
  1. Snowball Sampling:

Snowball sampling is a non-probability sampling in which participants are recruited based on referrals from other participants. The sample grows through a chain of referrals, like a snowball rolling downhill. This sampling method is useful when the population is difficult to access or locate, such as members of a hidden or stigmatized community.

For example, a researcher might start by interviewing one member of a specific group and ask them to refer others who might be willing to participate. This sampling method is not representative of the population and may be biased toward those who are more connected or have stronger social networks. As such, it is often used when studying hard-to-reach subgroups or in qualitative research, where the focus is on exploring experiences and perceptions rather than generalizing results to the broader population.

There is no formula to find the sample size of snowball sampling as the sample size is not predetermined and can vary.

Merits:

  • Useful when the population is hard to reach or hidden
  • Can be cost-effective

Demerits:

  • Prone to bias because the sample is not representative of the population
  • Results may not be generalizable to the population
  • It can be time-consuming and may require a large sample size to obtain enough data

Difference between the Census Method and Sampling Method of Data Collection

Here’s a table comparing the census method and sampling method:

Basis of DifferenceCensus MethodSampling Method
DefinitionCollecting data from every member of the population.Selecting a representative subset of the population for data collection.
PopulationEvery individual or unit that is part of the target populationA subset of the target population.
Sample SizeEntire population.Subset of the population.
CostHigh – requires resources, time, money, and personnel to collect data from every individual in the population.Lower cost than the census method but may still require resources for selecting and contacting participants.
RepresentativenessHigh – includes every member of the population, providing accurate and comprehensive data.It depends on the sampling method used – some methods may not be representative or may be prone to bias.
FeasibilitySuitable for small populations or when the cost of data collection from every individual is feasible.Suitable for larger populations when it is not feasible or practical to collect data from every individual.
ExamplesCensus of a country’s population.Simple random sampling, stratified sampling, cluster sampling, etc.

In summary, the main difference between the census method and the sampling method is that the census method involves collecting data from every member of the population. In contrast, the sampling method involves selecting a representative population subset for data collection. The choice between these methods depends on various factors, such as the population size, available resources, representativeness, and research question.

Index Numbers with Formula and Examples

Meaning and Definitions of index number

An index number is a statistical tool used to measure relative changes in a variable or group of variables in relation to time, geographical location, or other factors. It is a subset of a rate, ratio, or percentage that expresses the overall magnitude of a set of distinct but related variables in two or more situations.

Index numbers are a type of average that is used to measure relative changes in the level of a phenomenon when measuring absolute change is impossible, and the series is expressed in various types of items. It is used to compare the levels of a phenomenon over different time periods or at different locations during the same time period. Furthermore, it is used to study changes in the effects of factors that cannot be measured directly, such as general price level, which cannot be measured directly but can be measured using the index number technique.

Index-number-with-Formula

According to Irving Fisher, an index number is “a number which measures the relative changes in some quantity or quality over time, or in different places, compared with a fixed standard.”

According to Bowley, “an index number is a simple arithmetical device for comparing the value of a group of related variables at different times or places.”

According to Laspeyres“an index number is a number that shows how many times a certain quantity, such as price or quantity of a commodity, has changed over a given period of time in comparison with its level at some previous period, called the base period.”

Features of index number

The main highlighting features of index numbers are mentioned below–

  • It is a type of average that is used to measure relative changes when absolute measurements are impossible.
  • The index number only shows the first changes in things that can’t be measured directly.
  • It provides an overview of the relative changes.
  • The method of calculating index numbers varies from variable to variable.
  • It aids in comparing the levels of a phenomenon on a specific date to those on a previous date.
  • It represents a special case of averages, specifically a weighted average. Index numbers are useful in all situations.
  • The same index used to determine how prices change can also determine how much is made in industry and agriculture.

Importance of index number

Index numbers are used to compare the levels of a phenomenon over different time periods or at different locations within the same time period. The following sections summarize the significance or applications of index numbers.

  1. Index numbers as barometers of economic activities: Index numbers, like barometers used in physics and chemistry to measure atmospheric pressure, are used to measure the pressure of economic and business behavior. As a result, index numbers are referred to as barometers of economic activity.
  2. Index numbers help study trends and tendencies of economic activities: Index numbers track changes over time, allowing us to study the overall trend and tendency of the economic activity under consideration. The index number can also be used for forecasting to measure the average change in a specific group.
  3. Index numbers measure money’s purchasing power or value: A price index number can be used to calculate money’s purchasing power or value. The price index can also be used to calculate the real wage rate. Divide the money wages by the corresponding price index and multiply by 100 to get the real wage.
  4. Index numbers are used for deflation: The net national product or income converted at current prices is deflated using index numbers. The deflated net national product or income represents the net national product or income at constant prices under inflationary conditions. We can also calculate real wages or income using a deflated index number.
  5. Index numbers help in formulating decisions and policies: The government uses index numbers to adjust wage policies, price policies, rent control policies, and taxation policies. Index numbers guide many other economic policies, including trade volume, wholesale price setting, retail price setting, and so on.

Types of index number

Index numbers are of various types. Generally, they are categorized into the following three types.

  1. Price index number: With regard to price, an index number of prices or price index is created. It is used to represent changes in the prices of a group of commodities over time. The price could be wholesale/producer or retail/consumer. There are two types of index numbers. They are:
  • Wholesale price index number: The index number developed based on wholesale price is called the wholesale price index number. It is also called the producer’s index number.
  • Retail price index number: If the price index number is developed based on retail price, then it is called a retail price index number. It is also called the consumer’s price index number or cost of living index number.
  • Quantity index number: In relation to output, a quantity index number is calculated. It is used to track changes in the physical volume or quantity of goods (produced/ manufactured, distributed, or consumed) across various sectors of an economy over time. Quantity indexes include the index of agricultural production, the index of industrial production, the index of goods imported, and the index of goods exported.
  • Value index number: A value index number is created to study the variation in the total value of a commodity or group of commodities over time. The total value, TV = P x Q, is found by multiplying the number of items by their price. Value indices include the index of retail sales, the index of export, and the index of imports.

In this article, we are concerned with price index numbers only.

Usable terminology in constructing index number

The following are some notations and terminologies used in index number (price index number):

Po: Price of the commodities in the base year/ period.

Pi: Price of the commodities in the current year/ period.

qo: Quantity of a commodity consumed or purchased during the base year/ period.

q1: Quantity of a commodity consumed or purchased during the current year/ period.

P01: Price index number for the current year/ period with respect to the base year/ period.

P10: Price index number of base year/ period with respect to current year/ period.

W: Weight assigned to the commodities according to their relative importance in the group.

Base period: The year with respect to which comparisons are made. It is denoted by the suffix ‘0’. It is also called the reference period.

Current period: The year for which comparisons are required is called a current period. It is denoted by the suffix ‘1.’

Steps in the construction of index number

The steps for the construction of an index number can be explained below:-

  1. Purpose or objective of index number: Before constructing the index number, it is critical to understand its purpose. All other steps or problems are viewed through the lens of the purpose for which the specific index number is to be created. The type of index number to be created is determined by its purpose or objective.
  2. Selection of base year: The year against which the price changes in subsequent years are compared and expressed as a percentage is referred to as the base year. A normal year should be the base year (free from abnormal conditions like war, famine, flood, etc). The base can be either fixed or chained.
  3. Selection of commodities: The commodities chosen are determined by the index number’s purpose and type. When constructing the index number, only representative commodities are chosen.
  4. Collecting prices: Prices should be collected from a large market and from sources that are unbiased and open to the public. The choice of wholesale or retail prices is determined by the type of price index number to be created. The collected prices should be averaged.
  5. Selection of average: There are several types of averages, but the choice is usually between an arithmetic mean and a geometric mean. Although the arithmetic mean is easier to understand, the geometric mean is the best measure for measuring relative changes.
  6. Selection of weights: The commodities used to calculate the price index number are not all equally important. As a result, appropriate weights should be assigned to various commodities based on their relative importance in the group. Weights can be assigned to production, consumption, or distribution figures. However, the most commonly used weighting systems are quantity and value weights. Various commodities are assigned importance in quantity weights based on the amount of their quantity used, purchased, or consumed. In Value Weights, the importance of various items is assigned based on the amount of money spent on them. The weighting system can also be base period weights or current period weights. The index number’s purpose and data availability influence the selection of different weighting systems.
  7. Selection of method: The goal of the study, the level of accuracy, and the availability of data all influence the process of creating a price index number. There are primarily two methods for calculating price index numbers:


(a) The simple or unweighted price index number: A simple price index number can be calculated using one of two methods:

(i) the simple aggregative method or

(ii) the simple average of price relative method.


(b) the weighted price index number:  Weighted price index numbers can be calculated using following methods:

(i) the weighted aggregative method or

(ii) the weighted average of price relative method.


These steps in the index number construction process can sometimes result in index number problems. We can’t finish all the steps needed to make the index number. As a result, these steps are also known as construction index number problems.

Limitations of Index Numbers

Index numbers are very important tools for studying economic and business activities. However, there are some limitations which are explained below:

  1. Errors in sampling: Because index numbers are based on sample data, any errors during the sampling procedure creep into the index number construction.
  2. Formula Error: The selection of a formula is a problem because it may introduce bias in the index number.
  3. Changes: Changes in outlook, taste, and the quality of materials make it hard to make precise changes to index construction as science moves forward quickly. As a result, index numbers may not be a true measure of change.
  4. Choice of the average types: Because different averages have different advantages and disadvantages, it is impossible to say that one average is completely suitable for an index number. However, arithmetic and geometric means are commonly used.
  5. Errors in data collection: If data on prices, consumption, and production is not collected accurately, the index numbers will undoubtedly be misleading.
  6. Limited use: Most index numbers are created with specific goals in mind. If they are used for something else, they may lead to incorrect conclusions. Index numbers prepared to learn about the economic condition of teachers, for example, cannot be used to learn about the economic condition of workers.

Types of Price index Numbers

Various price index numbers are used to track changes in the prices of goods and services over time. The following are some of the most common types:

  1. Consumer Price Index (CPI): The Consumer Price Index (CPI) tracks how prices for goods and services bought by households change over time. It is often used to measure inflation. It is calculated by comparing the cost of a basket of goods and services in one time period to the cost of the same basket in another time period.
  2. Producer Price Index (PPI): PPI measures how the prices that domestic producers get for their goods change on average. It is often used as an indicator of inflation in the production sector.
  3. Wholesale Price Index (WPI): WPI measures the average change in prices of goods traded in wholesale markets. It is often used as an indicator of inflation in the wholesale sector.
  4. Export Price Index (XPI): The XPI measures the change in the prices of goods and services sold to foreign customers. It is frequently used as a measure of international price competitiveness.
  5. Import Price Index (MPI): The MPI measures how prices of goods and services bought from foreign suppliers change over time. It is often used to show how prices at home are affected by trade with other countries.
  6. GDP Deflator: The GDP deflator figures out how the prices of all goods and services produced in an economy have changed on average. It is frequently used to account for inflation in nominal GDP.

Methods of CPI (Consumer Price Index)

The Consumer Price Index (CPI) measures the average change in consumer prices for a basket of goods and services over time. CPI is calculated using several methods, including:
  1. Fixed-weight method: The index is calculated using a fixed basket of goods and services. The basket is chosen to represent typical consumer purchases, and the prices of the basket’s goods and services are collected at regular intervals. Because the fixed-weight method assumes that consumers buy the same basket of goods and services over time, it does not account for changes in consumer behavior or market shifts.
  2. Chain-weight method: This method uses a flexible basket of goods and services that changes over time to reflect changes in consumer behavior and shifts in the market. People think the chain-weight method is more accurate than the fixed-weight method because it changes based on how consumers act.
  3. Laspeyres method: This method uses a fixed basket of goods and services, but it allows for changes in the quantities purchased of each item. Most of the time, the Laspeyres method is used for goods and services whose demand stays steady over time.
  4. Paasche method: This method uses a basket of goods and services that changes over time, allowing for changes in the quantities purchased of each item. The Paasche method is commonly used for goods and services with volatile demand over time.
  5. Fisher’s Ideal method: This method employs a changing basket of goods and services to account for changes in both the quantity and quality of goods and services. Fisher’s Ideal method is the most accurate method of calculating CPI but is also the most complicated and time-consuming.

Popular Methods of Calculating the Price index with formula

Laspeyres and Paasche are two commonly used methods of calculating price indices.
  • Laspeyre’s Price index Method: The Laspeyres index, also known as the base-weighted index, is a calculation method that uses the base period quantities as weights. This method assumes that consumers purchase the same amount of goods and services over time, regardless of price changes. The Laspeyres price index is calculated as follows:


Laspeyres Price Index = (Current Period Prices x Base Period Quantities) / (Base Period Prices x Base Period Quantities) x 100

Where:

  • Current Period Prices: the prices of goods and services in the current period
  • Base Period Quantities: the quantities of goods and services purchased in the base period
  • Base Period Prices: the prices of goods and services in the base period

For example, if, in the base period, a consumer purchases 10 apples at Rs. 1 each and 5 oranges at Rs. 2 each, the weights for the Laspeyres index would be 10 for apples and 5 for oranges. If, in the current period, apples cost Rs. 2 each and oranges cost Rs. 3 each, the Laspeyres index would be:

Laspeyres Price Index = [(2 x 10) + (3 x 5)] / [(1 x 10) + (2 x 5)] x 100

= (20 + 15) / (10 + 10) x 100

= 135

  • Paasche’s Price index Method: The Paasche index, also known as the current-weighted index, is a price index calculation method that uses current period quantities as weights. This method assumes that as prices change, consumers adjust their consumption patterns. The Paasche price index is calculated as follows:


Paasche Price Index = (Current Period Prices x Current Period Quantities) / (Base Period Prices x Current Period Quantities) x 100

Where:

  • Current Period Prices: the prices of goods and services in the current period
  • Current Period Quantities: the quantities of goods and services purchased in the current period
  • Base Period Prices: the prices of goods and services in the base period

For example, if, in the base period, a consumer purchases 10 apples at Rs. 1 each and 5 oranges at Rs. 2 each, the weights for the Paasche index would be 10 for apples and 5 for oranges. If, in the current period, the consumer purchases 8 apples at Rs. 2 each and 7 oranges at Rs. 3 each, the Paasche index would be:

Paasche Price Index = [(2 x 8) + (3 x 7)] / [(1 x 8) + (2 x 7)] x 100

= (16 + 21) / (8 + 14) x 100

= 135.71

Both the Laspeyres and Paasche indices have advantages and disadvantages. The Laspeyres index tends to overestimate the cost of living increase, whereas the Paasche index tends to underestimate it. As a result, the Fisher index, which is the geometric mean of the Laspeyres and Paasche indices, is a widely used method.

  • Fisher’s Price Index Method: Fisher’s index is a method of calculating the price index that attempts to overcome the limitations of both Laspeyres’ and Paasche’s indices by taking the geometric mean of the two. The formula for Fisher’s index is:


Fisher’s index = (√(Paasche index * Laspeyres index))

Whereas the Paasche index uses current quantities and current prices, the Laspeyres index uses base period quantities and current prices. Because it takes the geometric mean of the two indices, Fisher’s index is considered more accurate and less biased than the other two indices.

The formula considers both quantity and price changes, and it is less affected by substitution bias or changes in the composition of the basket of goods over time. Fisher’s index is a well-known way to determine inflation rates and compare how much things cost over time. It also calculates the Consumer Price Index (CPI) and other economic indicators.

Weighted price index numbers

Weighted price index numbers are used to calculate the average prices of a group of items in a way that considers each item’s importance or weight. The formula for calculating a weighted price index number is:

WI = (Σ(Pi * Wi) / Σ(Wi)) * 100

Where,

WI is the weighted index number,

Pi is the price of the ith item,

Wi is the weight of the ith item, and

Σ represents the sum of all items in the group.


For example, we want to calculate a weighted price index number for a basket of goods consisting of apples, bananas, and oranges. The prices and weights of the items are as follows:

ItemPriceWeight
ApplesRs. 2.000.4
BananasRs. 1.500.3
OrangesRs. 2.500.3

Using the formula above, we can calculate the weighted price index number as follows:

WI = ((2.00 * 0.4) + (1.50 * 0.3) + (2.50 * 0.3)) / (0.4 + 0.3 + 0.3) * 100

WI = (0.8 + 0.45 + 0.75) / 1.0 * 100

WI = 200


So the weighted price index number for this basket of goods is 200. This means that the overall price of the basket had increased by 100% from the base period (when the index was 100).


Weighted Price Index Using Laspeyres’ Method:

P01 = (∑(Piqo W) / ∑(Poqo W)) x 100

Where,

P01 = Price index number for the current year/ period with respect to the base year/ period

Pi = Price of the commodity i in the current year/ period

qo = Quantity of the commodity i consumed or purchased during the base year/ period

W = Weight assigned to the commodity i according to their relative importance in the group

Po = Price of the commodity i in the base year/ period


Example of Laspeyres’ method:

CommoditiesBase year price (Po)Base year quantity (qo)Current year price (Pi)Current year quantity (q1)Weight (W)Po x qoPi x q0
Rice201024122200288
Wheat102014223200308
Milk151518201225360
Total (∑)6625956

Using the formula:

P01 = (∑(Piqo W) / ∑(Poqo W)) x 100

P01 = (288 + 308 + 360) / (200 + 200 + 225) x 100

P01 = 956 / 625 x 100

P01 = 153.00

Therefore, the weighted price index number using Laspeyres’ method is 153.00.


Weighted Price Index Using Paasche’s Method:

P10 = (∑(Pi q1 W) / ∑(Po q1 W)) x 100

Where,

P01 = Price index number for the current year/ period with respect to the base year/ period

Pi = Price of the commodity i in the current year/ period

qo = Quantity of the commodity i consumed or purchased during the base year/ period

W = Weight assigned to the commodity i according to their relative importance in the group

Po = Price of the commodity i in the base year/ period


Example of Paasche’s method:

CommoditiesBase year price (Po)Base year quantity (qo)Current year price (Pi)Current year quantity (q1)Weight (W)Po x q1Pi x q1
Rice201024122240288
Wheat102014223440308
Milk151518201300360
Total6980956


Using the formula:

P10 = (∑(Pi q1 W) / ∑(Po q1 W)) x 100

P10 = (240 + 440 + 300) / (288 + 308 + 360) x 100

P10 = 980 / 956 x 100

P10 = 102.51

Therefore, the weighted price index number using Paasche’s method is 102.51.

Secondary Level (11-12) Teachers competition Syllabus Nepal

TSC Ma Bi Second Class Syllabus Download (Uccha Ma Bi Syllabus) उच्च माध्यमिक तहका शिक्षक पदको प्रतियोगितात्मक लिखित परीक्षाको पाठ्यक्रम

Are you preparing for the Teachers Service Commission (TSC) exams for teaching secondary school classes in Nepal? If so, the very first step is to familiarize yourself with the syllabus for the Ma Bi Second Class (Secondary Level). Understanding the syllabus not only provides a clear roadmap for your studies but also helps you focus on the key areas that will be tested in the examination. 

The TSC Ma Bi Second Class syllabus is meticulously designed to encompass various subjects and competencies that are essential for secondary school educators. It includes detailed topics across pedagogy, curriculum knowledge, education psychology, and specific subject matter expertise. This comprehensive approach ensures that aspiring teachers are well-prepared to deliver quality education to students.

Downloading the TSC Ma Bi Second Class syllabus is straightforward and essential for your preparation strategy. To download the syllabus, visit the official website of the Teachers Service Commission, where all the syllabi are made available for public access. Navigate to the 'Syllabus' section, and select the appropriate syllabus for the Ma Bi Second Class. 

Once you have the syllabus, take time to review it thoroughly, break it down into manageable sections, and create a study plan that covers all the required topics. Additionally, consider joining study groups or forums where you can share resources and insights with fellow candidates. 

By staying organized and focused, you can efficiently prepare for the TSC exams and enhance your chances of securing a teaching position in Nepal's secondary education system.

👉 Download Uccha Ma Bi Syllabus

secondary-level-11-12-teachers-syllabus-uccha-ma-bi-syllabus

secondary-level-11-12-teachers-syllabus-uccha-ma-bi-syllabus

secondary-level-11-12-teachers-syllabus-uccha-ma-bi-syllabus

secondary-level-11-12-teachers-syllabus-uccha-ma-bi-syllabus


TSC Secondary Level Economics Subject Second Paper Subjective Question Paper 2080

tsc-old-questions-second-paper-view-download


TSC Secondary Level Economics Subject Second Paper Subjective Question Paper 2080

Ma Bi Economics Second paper Subjective Question of 2080 BS


नेपाल सरकार
शिक्षक सेवा आयोग
माध्यमिक तह, तृतीय श्रेणी, शिक्षक पदको खुला प्रतियोगितात्मक विषयगत परिक्षा - २०८०
समय: ३ घण्टा
विषय अर्थशास्त्र
पुर्नाङ्क: १०० 
उत्तिर्णाङ्क: ४०

सबै प्र्सह्नाहरु अनिवास्य छन्। प्रत्येक खण्डका लागि बेग्लाबेग्लै उत्तरपुस्तिका प्रयोग गर्नुपर्नेछ, अन्यथा उत्तरपुस्तिका रद्ध हुनेछ। 

खण्ड क
१. सुक्ष्म अर्थशास्त्र र वृहत अर्थशास्त्र बिचमा रहेका समानता र भिन्नता देखाउनुहोस। उक्त विषयवस्तु शिक्षण गर्न प्रयोग गरिने २/२ वटा शिक्षण सिकाइ क्रियाकलाप उल्लेख गर्नुहोस। (४+६)
२. राष्ट्रिय आय (National Income) लाइ कसरि बुझिन्छ? खुला अर्थतन्त्रमा राष्ट्रिय आय गणनामा समावेश हुने तत्वहरुलाई चक्रिय प्रवाह नमुना (Circular flow model) को प्रयोग गरि कसरि शिक्षण गर्न सकिन्छ? प्रस्तुत गर्नुहोस (२+८)
३. बजेटका प्रकारबारे उल्लेख गर्नुहोस। नेपालमा बजेट निर्माण प्रक्रियाका बारेमा कक्षा कोठामा शिक्षण गर्दा प्रयोग हुने शैक्षिक सामाग्री र कुनै दुइवटा शिक्षण सिकाइ क्रियाकलाप उल्लेख गर्नुहोस। (३+१+६)
४. नेपालमा ग्रामिण अर्थतन्त्रका मुख्य पांच आर्थिक क्रियाकलापहरुको सुची तयार गर्नुहोस। कुनै एक क्रियाकलापका बारेमा कक्षमा कसरि शिक्षण गर्नुहुन्छ? शिक्षण सिकाइ क्रियाकलाप प्रस्तुत गर्नुहोस। (५+५)
५. कक्षा १० का अर्थशास्त्र विषयको कुनै एक विषयवस्तुमा आधारित भै दुइ/ दुइवटा बहुबैकल्पिक प्रश्न छोटो तथा लामो प्रश्न निर्माण गरि छोटो तथा लामो प्रश्नहरुको उत्तर परिक्षण गर्न उत्तरपुस्तिका समेत तयार गर्नुहोस। (२+१+१+६)

खण्ड ख
६. प्रभावकारी माग (Effective Demand) भनेको के हो? त्रि क्षेत्रीय अर्थव्यवस्थामा आय र उत्पादन कसरि निर्धारण हुन्छ ? चित्रात्मक रुपमा प्रस्तुत गर्नुहोस। (३+७)
७. नेपालको सन्दर्भमा प्रत्यक्ष वैदेशिक लगानी (Foreign Direct Investment) को महत्वमाथि प्रकाश पार्नुहोस। यस्तो लगानी आवस्यक देखिएको कुनै ३ क्षेत्रको चर्चा गर्नुहोस। (४+६)
८. कुल राष्ट्रिय खुशी (Gross National Happiness) र खुद खुशी (Net Happiness) को बिचमा भिन्नता देखाउनुहोस। कुल राष्ट्रिय खुशीका ४ वटा खम्बा (Pillar) उल्लेख गर्दै वार्तमान समयमा नेपालको कुल राष्ट्रिय खुशीको अवस्था पांच बुंदामा प्रस्तुत गर्नुहोस। (३+२+५)
९. मौद्रिक नीति भनेको के हो? मौद्रिक नीतिका उपकरणहरुको बारे उल्लेख गर्दै कुनै दुइ उपकरणहरुको प्रयोग गर्ने अवस्थाबारे चर्चा गर्नुहोस। (२+२+६)
१०. तल दिईएको समस्यालाई पद विचलन विधि (Step-Deviation Method) स्तरीय विचलन (Standard Deviation) पत्ता लागौनुहोस र उक्त नतिजाको व्याख्या गर्नुहोस। (८+२)
tsc-secondary-level-economics-subject-second-paper-subjective-question-2080


समाप्त

Unofficial Translation of the Questions by Hamrolibrary

Government of Nepal 

Teachers Service Commission

Secondary Level, Class Third, Teacher Position Open Competitive Subject Examination - 2080


Time: 3 hours 

Subject: Economics 

Full Marks: 100 

Pass Marks: 40


All questions are compulsory. Separate answer sheets must be used for each section, otherwise, the answer sheets will be canceled.


Section A

1. Show the similarities and differences between microeconomics and macroeconomics. Mention 2/2 teaching-learning activities used in teaching this subject. (4+6)


2. How is National Income understood? Using the circular flow model, explain the elements included in the calculation of national income in an open economy and present how it is taught. (2+8)


3. List the types of budgets. Mention the educational materials used in teaching the budget preparation process in Nepal and describe any two teaching-learning activities used in the classroom. (3+1+6)


4. Prepare a list of the main five economic activities in the rural economy of Nepal. Present the teaching-learning activities on how to teach one of these activities in the classroom. (5+5)


5. Based on any one topic of the Economics subject of Class 10, create two multiple-choice questions, two short questions, and two long questions. Also, prepare the answer sheet for assessing these short and long questions. (2+1+1+6) 


Section B

6. What is effective demand? Explain the determination of income and production in a three-sector economy using a diagram. (3+7)

7. Highlight the importance of Foreign Direct Investment (FDI) in the context of Nepal. Discuss any three sectors where such investment is deemed necessary. (4+6)

8. Show the difference between Gross National Happiness (GNH) and Net Happiness. Mention the four pillars of GNH and present the current state of GNH in Nepal in five points. (3+2+5)

9. What is monetary policy? Mention the tools of monetary policy and discuss the use of any two tools in different situations. (2+2+6)

10. Using the Step-Deviation Method, find the standard deviation for the given problem and explain the result. (8+2) (Scroll right to view full part of the table →)

Marks (Less than) 10 20 30 40 50 60 70
Number of students 5 15 40 20 75 90 100

TSC Secondary Level Economics Subject Second Paper Subjective Question Paper 2081

tsc-old-questions-second-paper-view-download


TSC Secondary Level Economics Subject Second Paper Subjective Question Paper 2081

Ma Bi Economics Second paper Subjective Question of 2081 BS


नेपाल सरकार
शिक्षक सेवा आयोग
माध्यमिक तह, तृतीय श्रेणी, शिक्षक पदको खुला प्रतियोगितात्मक विषयगत परिक्षा - २०८१
समय: ३ घण्टा
विषय अर्थशास्त्र 
पुर्नाङ्क: १०० 
उत्तिर्णाङ्क: ४०

सबै प्र्सह्नाहरु अनिवास्य छन्। प्रत्येक खण्डका लागि बेग्लाबेग्लै उत्तरपुस्तिका प्रयोग गर्नुपर्नेछ, अन्यथा उत्तरपुस्तिका रद्ध हुनेछ। 

खण्ड क
१. पर्तिस्थापनको नियमको अवधारणा प्रस्ट पार्नुहोस। माध्यमिक तहमा अर्थसास्त्र विषय अन्तर्गत रहेको प्रतिस्थापनको नियमको शिक्षण प्रभावकारी हुन नसकेको भन्ने गुनासो रहेको सन्दर्भमा यसका कारणहरु केलाउनुहोस। यो विषयको शिक्षणलाइ हाप प्रभावकारी बनाउन अवलम्बन गर्न सकिने कुनै चारवटा शिक्षण सिकाइ क्रियाकलापहरु प्रस्तुत गर्नुहोस। (२+४+४)

२. कुल गार्ह्यास्थ उत्पादन र कुल राष्ट्रिय उत्पादन गणनामा रहेका चारवटा फरक तत्वहरुको चर्चा गर्नुहोस। कुल गार्ह्यास्थ उत्पादन , कुल राष्ट्रिय उत्पादन, र खुद राष्ट्रिय उत्पादन शिक्षण गर्न प्रत्येकका लागि उपयुक्त हुने दुइ दुइ वटा प्रमुख कार्यकलापहरु प्रस्तुत गर्नुहोस। (४+६)

३. बजेट भनेको के हो ? बजेट निर्माण र कार्यन्वयनको क्रममा करको दर र दायराले खेल्न सक्ने भूमिका बारे चर्चा गर्नुहोस। कक्षा १० का बिध्यार्थिलाई प्रत्यक्ष कर र अप्रत्यक्ष करको भिन्नता कसरि सिकाउनुहुन्छ ? उपयुक्त बिधि, कार्यकलाप र सैक्षिक सामाग्री सहितको खाका प्रस्तुत गर्नुहोस। (२+२+६)

४. नेपालमा ग्रामिण अर्थतन्त्रको सबलिकरणका लागि आवस्यक भौतिक र सामाजिक पूर्वाधारहरुको सुची बनाउनुहोस। यी मध्ये कुनै एक प्रकारको पूर्वाधार सम्बन्धि विषयको शिक्षण गर्नका लागि एउटा पाठ योजना निर्माण गर्नुहोस। (३+७)

५. उद्धेश्य , विषयवस्तु , शिक्षण बिधि र मुल्यांकन प्रक्रिया सम्बन्धि प्रावधानका आधारमा कक्षा १० को अर्थशास्त्र विषयको पाठ्यक्रमको एक सिंहावलोकन प्रस्तुत गर्नुहोस। (५+५)

खण्ड ख

६. अर्थशास्त्री J.M. Keynes को रोजगारीको सिद्धान्तका अनुसार अर्थतन्त्रमा सन्तुलित रोजगारीको स्तर निर्धारण प्रक्रिया रेखाचित्र सहित व्याख्या गर्नुहोस। उक्त सिद्धान्तलाई किन रोजगारीको शास्त्रीय सिद्धान्त भन्दा उत्क्रिस्ट मानिन्छ ? (६+४)

७. अन्तरास्ट्रिय व्यापार भनेको के हो? अन्तरास्ट्रिय र आन्तरिक व्यापारका बिभिन्न आयामका आधारमा यी दुइबीच विद्यमान फरक र समानताको उदाहरण सहित विवेचना गर्नुहोस। (२+४+४)

८. मानव विकास सुचाकंक भनेको के हो? आधुनिक अवधारणा अनुसार नेपालको मानव विकासका प्रमुख सुचाकहरुको विगत १० वर्षको प्रवृत्ति (Trend) लाइ तुलनात्मक रुपमा प्रस्तुत गर्नुहोस। (२+८)

९. वित्तिय नीतिको महत्वलाई चार बुंदामा लेख्नुहोस। नेपालमा वित्तिय नीतिको प्रभावकारिताको विश्लेषण गर्दै उक्त नीतिको कार्यान्वयन अपेक्षित रुपमा हुन नसक्नुका कारणहरु पेश गर्नुहोस। (४+३+३)

१०. मध्यक (Mean) र मध्यिका (Median) को अर्थ सहित फरक छुट्याउनुहोस। तलको तथ्यांकबाट मध्यक गणना गर्नुहोस। (४+६)
tsc-economics-2081-question



समाप्त

Unofficial Translation of the Questions by Hamrolibrary

Government of Nepal 

Teachers Service Commission

Secondary Level, Class Third, Teacher Position Open Competitive Subject Examination - 2081


Time: 3 hours 

Subject: Economics 

Full Marks: 100 

Pass Marks: 40


All questions are compulsory. Separate answer sheets must be used for each section, otherwise, the answer sheets will be canceled.

Section A

1. Explain the concept of the Law of Substitution. Discuss the reasons why teaching the Law of Substitution has been ineffective in secondary level economics. Suggest four teaching-learning activities to make the teaching of this topic more effective. (2+4+4)

2. Discuss four different elements involved in the calculation of Gross Domestic Product (GDP) and Gross National Product (GNP). Present two major activities suitable for teaching GDP, GNP, and Net National Product (NNP) respectively. (4+6)

3. What is a budget? Discuss the role that tax rates and tax bases can play in the process of budget formulation and implementation. How would you teach the difference between direct taxes and indirect taxes to Class 10 students? Present a plan including appropriate methods, activities, and educational materials. (2+2+6)

4. List the necessary physical and social infrastructures for the strengthening of the rural economy in Nepal. Develop a lesson plan for teaching a topic related to one of these types of infrastructure. (3+7)

5. Present an overview of the Grade 10 Economics curriculum based on objectives, subject matter, teaching methods, and evaluation processes. (5+5)

Section B

6. According to economist J.M. Keynes' theory of employment, explain the process of determining the level of equilibrium employment in the economy with the help of a diagram. Why is this theory considered superior to the classical theory of employment? (6+4)

7. What is international trade? Based on various dimensions of international and domestic trade, analyze the differences and similarities between these two types of trade with examples. (2+4+4)

8. What is the Human Development Index (HDI)? Present a comparative analysis of the trends in Nepal's major HDI indicators over the past 10 years according to modern concepts. (2+8)

9. Write four points on the importance of fiscal policy. Analyze the effectiveness of fiscal policy in Nepal and present the reasons why its implementation may not be as expected. (4+3+3)

10. Explain the meaning of mean and median with differences. Calculate the mean from the following data: (4+6)
tsc-economics-2081-question


The End
tsc-secondary-level-economics-subject-old-question-2081


Monopolistic Competition with its features

Monopolistic-Competition-with-features

Monopolistic Competition

Monopolistic competition is a type of market structure where many firms compete against each other, but each firm sells a slightly differentiated product. This differentiation allows firms to have some degree of market power, enabling them to set prices above marginal cost. Unlike perfect competition, where products are identical, firms in monopolistic competition focus on product differentiation to attract customers.

According to Edward Chamberlin, "Monopolistic competition is a market structure in which a large number of sellers produce similar, but not identical products."

Features of Monopolistic Competition

1. Large Number of Firms: Many firms operate in the market, each holding a small market share. This ensures that no single firm can control the entire market.

2. Product Differentiation: Firms sell products that are similar but not identical. Each firm tries to differentiate its product through branding, quality, features, or other attributes, creating a unique product identity.

3. Free Entry and Exit: Firms can freely enter or exit the market. This means that if firms are earning abnormal profits, new entrants will join the market, increasing competition and driving profits down. Conversely, if firms are incurring losses, they can leave the market.

4. Some Degree of Market Power: Due to product differentiation, each firm has some control over its pricing. Firms are price makers to a certain extent because consumers may prefer their product over others due to its unique features.

5. Non-Price Competition: Firms often compete using non-price factors such as advertising, branding, product features, customer service, and packaging to attract customers and gain market share.

6. Normal Profits in the Long Run: In the long run, firms in monopolistic competition tend to earn only normal profits. Any short-term abnormal profits attract new entrants, which increases supply and reduces prices and profits.

7. Downward Sloping Demand Curve: Each firm faces a downward-sloping demand curve, meaning that it can sell more only by reducing its price. This is different from perfect competition, where firms are price takers and face a perfectly elastic demand curve.

Class 11 Economics (New Course | New Syllabus) Notes

Class 11 Economics Notes for New Course

Class-11-economics-new-syllabus-complete-notes-neb-hseb

Chapter 1: Basic Concept of Economics and Allocation of Resources

1.1 Meaning and definition of economics



1.6 Factors of production
a. Land, Feature/ Characteristics of land
b. Labour, Features/ Characteristics of labor
------- Factors affecting Demand (Detail)
-------Difference between Desire and Demand
-------Law of Demand
-------Causes of Demand curve sloping downwards
-------Exceptions or Limitations of the law of demand
-------Demand Schedule, Demand curve, the Demand equation
-------Individual and Market demand curves

Chapter 3: Elasticity of Demand and Supply

3.1 Elasticity
3.2 Elasticity of Demand
a. Price elasticity of demand
b. Income elasticity of demand

Producer's Surplus


Chapter 6: Introduction to Macroeconomics

Basic concepts of Macroeconomics
Scope of macroeconomics


Chapter 9: Economic Development, Growth, and Capital Formation

Concept of Economic Growth
Difference between Economic Development and Economic Growth


Agriculture Marketing
----- Importance of Agriculture Marketing
----- Nature of Agriculture Marketing
----- Problems of Agriculture Marketing
----- Remedial measures of Agriculture Marketing

Chapter 13: Manufacturing and Tourism Industries in Nepal

Manufacturing Industries in Nepal (Concept, history, types, importance, and problems)
Tourism Industry (Concept, types, importance, problems, current situation, prospects)


Problems and solutions for Transport and Communication problems in Nepal

Mathematics Portion

Uses and importance of mathematics in economics

This post includes the notes of class 11 economics as prescribed by NEB in Nepal. Students can refer these NEB class 11 economics notes for their study of  +2 in management in Nepal. The notes are as per the new syllabus and new curriculum of NEB.

Household Economics

Household Economics

Business

Business

Statistics

Statistics

Opinion

Opinion

Demographic Economics

Demographic Economics

Fashion

Fashion

Startup

startup

History

History

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