Scarcity and Choice: The Emergence of Economic Problems Scarcity The wants of human beings are limitless and resources to fulfill them are limited. It is a fact that the total quantity of products that can be produced by applying the productive resources of an economy is insufficient to satisfy all the needs and wants of […]
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Meaning of Capital Formation All the man-made factors used in further production are known as capital. Capital formation (the process of capital formation), therefore, refers to an addition to the stock of capital in an economy over time. It is a long-run process and it increases the productive capacity of an economy. Out of earned
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The countries in which the process of development has started but is not completed, have a developing phase of different economic aspects or dimensions like per capita income or GDP per capita, human development index (HDI), living standards, fulfillment of basic needs, and so on. The UN identifies developing countries as a country with a
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An economy that does not involve overseas trade is known as a closed economy and an economy having participates in international integration in the form of trade and flow of capital as well as other resources is known as an open economy. The major differences between a closed economy and an open economy are shown
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Meaning/Introduction to Open Economy An economy in which there is the provision of international trade or foreign trade is known as an open economy. It means the economy that has a freedom of socio-economic relationship with the rest of the world is an open economy. Domestic people and businesses can trade in goods and services
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Based on participation in international trade, economies can be divided into two types the closed economy and the open economy. Here we introduce a closed economy (Introduction to the closed economy). An economy that does not participate in international trade is known as a closed economy. Thus, a closed economy refers to an economy that
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The performance and behavior of the economy can be shown and analyzed by different economic variables and these are known as macroeconomic variables. Thus, macroeconomic variables are indicators or pointers that exhibit the situation and trends of the entire economy or show the pattern of the economic status of a country. Macroeconomic variables are crucial
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