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.
electron control,inc.,cells voltage regulators to other manufacturers , who then customize and distribute the products to quality assurance labs for their sensitive test equipment.
gap between economic theory and business practice
Assumptions of Monopolistic Competition Monopolistic competition as the name implies, combines features from both perfect competition and monopoly. It has the following featu
SHORT RUN EQUILIBRIUM OF THE FIRM A firm is in equilibrium when it is maximizing its profits, and can't make bigger profits by altering the price and output level for its prod
Q. Show the Characteristics of monopoly? Let's summarise the main characteristics of monopoly as under: Cross-elasticity of demand for a monopoly product is zero in the
'' monopoly is good for consumer welfare" is this crrect
critically analyze the of profit maximization
CLASSIFICATION OF TAXES Taxes can be classified on the basis of: a. Impact of the taxes It means on whom the tax is imposed. On the other hand, incidence of the
determination of size of firm
Explain the Decision-making theory Decision-making theory and game theory that recognise the conditions of imperfect knowledge and uncertainty under which business managers ope
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