Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Spendthrift Economy
This assumes a circular flow of income in a closed economy with no Government sector and no foreign trade. It also assumes the existence of two sectors, namely the sector of households and the sector of firms. Firms make the commodities that households consume. They purchase the services of factors of production from the household that own them, paying wages, rent, interest and profits in return, and then use the factors to make commodities.
It is assumed firms sell all of their output to households and receive money in return. All of the money received is in turn paid out to households. Part goes to households that sell factor services to firms, and the rest is profit paid out as Dividends to the owners of the firm. In short, neither households nor firms save anything in the spendthrift economy; everything that one group receives goes to buy goods and services from the other group. Expenditure is the rule of the day!
Now, suppose we wish to calculate the Total Value of the economy's output. We can do this based on either side of the circular flow shown in the figure above. The output-expenditure approach uses calculations based on the flows on the right hand side of the figure, while the input-factor income approach uses calculations based on the flows on the left-hand side of the figure.
For some time, two firms have charged $0.90 per standard unit of crating materials for shipping a particular type of machine tool and each has been selling about 20,000 units per m
Causes There are a number of explanations of the business cycle but changes in the level of investment seem to be the most likely. In the simplest Keynesian model an increase
a critique of the relevance of managerial economics
Asuume there are two inputs in the production function, labor & capital, and these two inputs are perfect substitutes. The existing technology permits one machine to do the work of
Cheap Labour It is often argued that the economy must be protected from imports which are produced with cheap, or 'sweated", labour. Some people argue that buying foreign
Determine the Theory of Exchange and Price Theory Theory of Exchange is commonly called Price Theory. Price determination under various types of market conditions comes under
Explain in brief the relationship between TR,AR and MR under perfect market condition.
Relevance of The Law of Diminishing Returns The law of diminishing returns is important in that it is seen to operate in practical situations where its conditions are fulfille
Classification of oligipoly
Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd