Commerce Point Tution Classes

DIFFERENCE BETWEEN BALANCE OF TRADE AND BALANCE OF PAYMENT.
⚫ Balance of trade is a part of balance of payment, hence it is a narrow term And balance of payment is a broad term .
⚫ Deficit balance of trade can be met by balance of payment but deficit of balance of payment cannot met by balance of trade.

RELATION BETWEEN TOTAL UTILITY AND MARGINAL UTILITY
🖌️When total utility increases marginal utility diminishes
🖌️When marginal utility is zero total utility is maximum .
🖌️When marginal utility is negative than total utility decreases.

Accounting equation
Assets =liabilities+capital