Monday, January 11, 2010

ECONOMICAL

Perfect Melancholies by nature cannot be wasteful; any they love to get a bargain. Fred cuts the money saving coupons out the paper neatly with scissors and saves them for the right moment. If I do it at all, I rip them out and arrive in the store with these odd, shaggy papers Fred’s moment in life is when he has a coupon worth a dollar of on a pound of coffee, and the supermarket has Double coupon days. Once there was also a double coupon in the can, and he was euphoric at actually being paid thirty-seven cents to drink the coffee. Popular sanguine never send those rebate coupons in, but perfect Melancholies make sure they get everything they deserve. Fred not only shops for bargains, but he checks he trash to make sure i don’t throw anything of value. He will decide a mayonnaise jar could be useful if I’d wash it, that the bananas I’ve tossed would be just in banana bread; and that there are still a few gods sweeps in the old broom.
If I want to make sure he doesn’t scrounge something up, I have to take it next door and hide it in the neighbor’s trash. One perfect Melancholy lady I know puts every little leftover in a plastic container in the refrigerator. She writes on the top the name of the item and the date she put it away. She puts today’s entry in the back, pushing the other jars to the front. This way she eats the leftovers in order, and nothing ever goes to waste.

Sunday, January 10, 2010

UNDERUTILISED NATURAL RESOURCES

Most of the developing countries are rich in natural resources However, their exploration and exploitation is limited. Sometimes foreign companies control them. Generally, raw products are exported at low price. These countries lack suitable technology and work force to make the resources more productive and profitable. They earn less from bountiful nature Take the case of Nepal; it’s the second largest country in hydropower resources resource in Asia. Laos is rich in timber wood. Argentina abounds in wheat and meat produce. Nevertheless, harnessing the benefits from these resources on their own is highly skewed. Because of the underutilization of available of resources, these countries are poor.

HIGH DEPANDENCE ON AGRICULTURE

Agriculture is the main occupation in developing countries. More than 70 percent of active labor force is engaged in the primary sector. Population increases and the increased about stick to agriculture thereby over burdening the farm size. There is low output per head fragmented patches of smallholding do not allow modem scientific techniques is farming. There is a high ravage of nature in traditional agriculture, which minimizes the production volume. Still the contribution of agriculture sector to GDP is significantly high in these countries. Thus, agriculture has been many stay of the economic.


GENERAL POVERTY


Development countries are poor. By defined GDP and per capita income are at low level general living standard of people in these countries is very low. Poverty is visibly disturbing every aspect of life. Children are half fed and half clad and their under nourished bodies are disease prone. These big belly children have less chances of surviving up to 5 years of age both infant and child mortality rate is very high. General health services for people are insignificant. The life expectancy at birth does not exceed 60 years. Most of the children have no schooling .Adult illiteracy rate is very high in most cases exceeding 60 percent. Labour quality it very low. They have fewer chance of employment they engage in low paying jobs. Their income is low and they live a sub standard life no recreation and no modern facilities a majority of people in developing countries are born in poverty.

ECONOMIC GROWTH

Defined as an increase in aggregate output of goods and services in country during a given period of time in the word of Simon kuznet, economic growth is a long term rise in the capacity to supply increasingly diversified economic goods and services to its population Some other economist defined that is a process of raising GNP of a national over long period of time. Shortly it implies to be sustained expansion in economic activities over a long period of time. Economics growth is regarded as necessary condition of economic development.
High economic growth depends upon price stability of good and services, access of transport and communication, provision of primary health and education, establishment of key industries. There are two major indicators of economic growth. They are national income and per capital income.

PERSONAL INCOME


Personal income the total money received by individuals and household of a country from all possible sources before direct taxes. The factor of production does not the whole amount of national income. Corporate income fax should be paid to the government from corporate profile .This is not available to the shareholders and therefore it does not constitute personal income. Some part of the corporate profile is kept undistributed or retained by the business units. Similarly, the salaried person should keep some part of their salaries in the form of provident fund, pension and social security contribution. These amounts should also be deducted from national income because they are not available to the individual. At the same time, government provides transfer payment in the form of unemployment allowance, old age allowance, interest on public debt. These amounts personal income but are not a part of the national income.

WHAT A PRODUCE


The first concern is related with, what to produce? , how much to produce? because resources are scarce, production off all needed by a society are beybond its capacity. it all simplly not posible for any economy no mater how developed it might be. So, it has to select a set among various alternatives. Productions must meet the maximium social need. The first priority goes to basic needs. However, production is guided by profit and profit knows no social knows any social justice. An economy should follow social efficiency while reallocating resources. The social norms and values should guide to maximize social satisfaction. So alloccation in best which satisfies the most .The problems of what to produce and how much to product depends on the citizens of the country.

Saturday, January 9, 2010

CHOICE


The optimization objective of the economic actors necessitales making knowledgeable choice in the use of avililable the use of avililabel resourse. Choice is involed in economic activotes at both consumtion and production levels. It also concers individulal and the state.The problems of choice being with an individuels liking of how mush time he would allot for work and how much fore leisure. The more time he earns. On the income earned, the choice is betwenn how much to cosume now and much to save for the future. Choice in consumption mens what to by food or clothes, swwets or toys or a combition of both in limited quentity, We discuseed about scarcity and choce above.The terms will be repeatedly used in the following sections. The meaning of scarcity in realation to the nature of good that always command value and the relatively limited of resources . Simillarly, there is always a problems of choce because of resources and their alternative uses. Let us now turn to allocationof resources.

CONCEPT

Scarcity and choice are basic problems in economics. this concept was introduced by prof. Lionel the effects of unlimited human wants and supply of limited resources create the problems of scarcity in human society. The quantity supplied of economic resource such as water .forest and mineral resources, human resources and physical resourcss is very limited in comprarsion of their demand. But the quentity supplied of noneconomic resourse such as sunlight, air, water is unlimted to us. Therefore economics is such a subject which aims to utlize scarce resources in a scientific way, so that human being can achieve maximum satisfaction from the use of limited economic resources. The prblems scarcity is present is present not only in devlopment nations but also in highly devloped nations. So long as human wants are more then the supply of resourse, the scarcity problems world not Be sloved from human soceity. The nature of scarcity change along with change in living standard and life system of human being.

MACROECONOMICS

As discussed above macroeconomics studies and analyzes the behaviour of the economic system in totality. It is concerned with the some total of economics activities of the whole economics organism .That is why macroeconomics is also called aggregative economics. It deals with the economics wide aggregates like total consumption, total consumption, total investment, total employment, general price level etc and analyzes their interrelationship. Basically, macroeconomics comprises of theories that study and explain about the aggregates of the economy, national level economic problems and policies aimed at solving those problems. The analysis of income and employment, general price level ,economic growth and income distribution are the constituents of macroeconomics theory .The trade cycle ,inflation, unemployment and low rate of economics growth constitutes macroeconomic problems and monetary policy and fiscal policy are macroeconomics polices of the government to solve macroeconomic problems

ECONOIMCS AS A SOCIAL SCIENCE


Economics studies human activities and behaviour in relation to wealth. it also studies alternative uses of resources to meet human wants. Since economics laws and rules are derived on the basis of human behaviour, they are subject to change along with change in human activities and their behaviour. Every human activity is carried out in human society. Human beings are the most and first important factor of society. Therefore, economics is directly or indirectly a social science. Economics guides human being in making decisions on what to produce, how to produce, how much to produce and for whom to produce. Production of many types of goods lies within the scope of economics. Production of various types of goods in most essential to those who live in there society. The process of marketing, publicity, exchange and consumption are also the parts of social action. Therefore, economics has become on the integral parts of human society.

ECONOMICS SCIENCE AND ART


Economists and scholars are divided on the issue of whether economics is a science or an art. However, a conclusion can be drawn about it by considering the meaning of science and art and what economics actually does. Science is defined as a systematic and comprehensive body of knowledge. It seeks to establish cause and affect relationship .generally,scientific

1. Studies are a systematic body of knowledge
2. Studies establish cause and effect relationship,
laws with universal application ,and
3. laws are derived from experiments

On the other hand, art is concerned with the solution to practical problems it teacher to solve practical problems on the basic of the above discussion ,it can be said the some theories of economics are scientific laws, establish cause and effect relationship .for example, the law of demand states that the quantity demanded of a commodity varies inversely with its price .A change is market prices leads to change in quantity demanded ,Here, a change in price is the cause and the change in quantity demanded is the effect. We can observe them through practical experiment. Similarly, the law of diminishing marginal Utility, law of supply, the law of returns to scale is based on cause and effect relationship.
These laws are universally accepted and they are derived from experiments .considered thus, economic is a science as any other science .the economic laws as other scientific laws are hypothetical and conditional .They are always stated in it. It means ,if the assumptions hold then certain result will follow .the controversy as the to whether economics is a science or an art ended with Marshall’s saying that economic laws are merely statements of tendencies .They are highly conditional .all the conditions and qualifications are covered by the phrase ceteris paribus or ‘ other thing remaining the same ‘ Therefore , economics is not only a science ,but also an art pious and other economists accepted economics an art . Art means creation of new thing from human mind. Basically, creation, of new plans, policies and programs is highly essential in analyzing the issues of economics such as poverty alleviation, inequality reduction, and population correction over regional imbalance and so on. Problems related to poverty, inequality, population growth can be solved not by scientific Formula but by preparation and effective implementation of plants and policy related of those issues. The success of much economic plants and policies rests upon skills, experience, knowledge and efficiency which are known as the subjects of arts .Therefore, economics is regarded as science as well as art.