Latest posts
-
Explain the Properties of Capital and Organization?
Meaning of Capital: In ordinary the term capital means cash or money, but in economics capital does not means only cash it means wealth that is used for producing additional wealth in other what it refer to all manmade wealth .It includes cash, raw material, tools implements, machines, vehicle, furniture, building etc. The properties of…
-
Explain the properties of Land and Labor?
Meaning of Land: The term land mean the surface of the earth of soil in ordinary term .but in economic the term lands means not only soil but also all other natural resources available to a man for the production of wealth for example water, sunlight, minerals, natural vegetation ,animals etc. The properties of land…
-
Explain the Economies of Scale.
Meaning of Economies of Scale: Economies of scale refer to the cost advantages that a business or organization can achieve as a result of an increase in the scale of production or size of operations. In other words, as the quantity of goods or services produced or the scale of operations expands, the average cost…
-
Write a note on Production Function.
Meaning of production function: The term production means transformation of physical inputs in to physical outputs. The term inputs refers to all those things which are required by the firm to produce a particular product. In addition to four factors of production, inputs also include other items like raw materials of all kinds, power, fuel…
-
What is Production? Explain the importance of Production?
Meaning, Types and Importance of Production in Economics Complete Guide for BA LLB Students | Economic Growth, GDP, Capital Formation & Business Development What is Production? (Meaning in Economics) Production is one of the most important activities in the circular flow of economic activity. In simple words, production is the process of transforming inputs into…
-
Define Profit? Explain the Innovation theory of Profit?
Meaning: Profit refers to the financial gain or benefit that an individual or business receives from an investment, business operation, or entrepreneurial activity. It is one of the key motivations for engaging in economic activities and is crucial for the sustainability and growth of businesses. The innovation theory of profit given by J.A Schumpeter a…
-
Explain the Loanable Funds theory of Interest?
Introduction: Loanable funds theory of interest is an extension of the classical theory of interest the theory was formulated by a Swedish economist wick sell. Later on professor Robertson, Ohlin and others have redefined it. According to the theory the equilibrium interest rate is determined by the equality between demands for supply of loanable funds,…
-
What is Wage Differentials? Explain the causes of Wage Differentials?
Meaning: The term wage differential refers to the wage differences which exist between different occupations or different individuals in the same occupation. For example a film star may earn RS 2cr a year which a bank clerk may earn only 1.2 lacs a year, again one film star may earn more than the other film…
-
Explain the concept of Quasi Rent.
Meaning: The concept of quasi rent was first introduced by Marshall. He explained that besides land, other factors also get rent the only difference is that rent may accrue to land in the long run also whereas it accrues to others factor only in the short run. Concept of Quasi-Rent: Marshall explained that the supply…
-
Briefly explain the Ricardian theory of Rent?
Introduction: In the ordinary language, the term rent means any periodical payment made by a person for the privilege of using an asset belonging to someone else. It denotes a payment made for the hiring of a particular thing such as a house, car machine Etc. all these are the instance of periodic payment and…