CONCEPT OF EQUILIBRIUM

UGC- NET/JRF Education Objective Type Question Answer
dr.jagriti
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Joined: Sat Feb 23, 2019 12:58 pm

CONCEPT OF EQUILIBRIUM

Postby dr.jagriti » Wed Feb 27, 2019 1:58 pm

The word "EQUILIBRIUM "was derived from the Latin word "AEQUILIBRIUM" Which means "EQUAL BALANCE".In economics "equilibrium" is borrowed from "PHYSICS" here it means STATE OF EVEN BALANCE"

In Physics,When two opposing forces working on an object are in balance ,so that the object is held still,the object is said to in state of equilibrium .

in Economics ,equilibrium implies a position of rest characterized by "ABSENCE OF CHANGE".
The CONSUMER said to be in equilibrium when he has no tendency to "REALLOCATE HIS EXPENDITURE".
The PRODUCER said to be in equilibrium when he has no tendency to "REALLOCATE THE LEVEL OF OUTPUT".

"A market or an economy or any other group of persons and firms is in equilibrium , when none of its members feels impelled to change his behavior".
-------------------------------------ACCORDING TO SCITOVSKY.





-------------------> TYPES OF EQUILIBRIUM <-----------------
1) STATIC EQUILIBRIUM.
2) DYNAMIC EQUILIBRIUM.
3) STABLE EQUILIBRIUM.
4) UNSTABLE EQUILIBRIUM.
5) NEUTRAL EQUILIBRIUM.
6) PARTIAL EQUILIBRIUM.

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