In economics short-run and long-run do not reflect any time period like the concept of short-term and long-term. Economists connect the word short-run as well as long-run or the concept of short-run and long-run with the ability of producers to adjust different factors of production while producing goods and services. Thus, the concept of short-run […]
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Concept of Optimum Employment of Input Every producer engages in the act of production to earn possible maximum profit by utilizing the available amount of total cost outlay, prices of factors of production, state of technology, governmental policy, and so on. To ensure a maximum profit or to minimize the cost of production, the selection
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The nominal gross domestic product is the total market value of all newly produced goods and services during each time, usually annually. Real GDP is nominal GDP adjusted for inflation or measurement of newly-produced goods and services at constant prices. Real GDP is used to measure the actual growth of production without any effects of
Among Nominal GDP and Real GDP, which GDP is better? Read More »
Introduction If the gross domestic product is measured at the prevailing market price then it is known as nominal gross domestic product and if the gross domestic product is measured at a constant price or base year price then it is known as real gross domestic product. In this article, we attempt to give a
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Here in this article, we have tried to define personal income, disposable income, per capita income, and personal income. Personal Income (PI) Personal income can be defined as the income obtained by all individuals and households of a nation from all the possible formal sources before payment of direct personal tax or income tax during
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After discussing several key concepts of national income at market price as well as at factor cost, in this article, we attempt to establish the relationship between concepts of national income at market price and factor cost. As we know that various concepts of national income can be measured in terms of market price as
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Introduction to Concepts of National Income at Factor Cost Factor cost is the total cost of production. It means factor cost is the total payment made by producers to the owners of factors of production in return for their assistance in the production of goods and services. So, it is the total of all earnings
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Introduction The price given by the final purchasers of the consumer as well as capital goods is known as the market price. If we determine the values of different concepts of national income at prevalent prices of goods and services, then the concepts are said to be measured at market price. Here we try to
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This article tries to briefly introduce major concepts of national income. Concepts of National Income Meaning of Concepts of National Income The concept of national income provides insight into the economic performance of a nation. National income has been defined in several ways. It may be the total market value of all final goods and
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Meaning of National Income In this article, we explain the meaning and features of national income. You will know what national income actually is and what it measures. Meaning and Features of National Income The human resources of a nation combinedly working with capital and natural resources produce annually various quantities of goods and services.
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