Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment

BASIC CONCEPTS AND DISTINCTION

BASIC CONCEPTS
a) Goods: In economics, anything that is capable of satisfying human want is called as Goods. Things like food, clothing, cars, house etc are desirable goods. 
The classification of goods are as under
1) Material and non-material goods : 
Material goods are those goods which can be transferred from one person to another. These are tangible in nature .
Examples- scooter, car, air conditioner
Non -material goods are those goods which are services in general .
Examples-The job which is done by teachers,doctors,soldiers are services.
2)Economic goods and free goods :
Economic goods are those goods which are produced by men and have specific price in the market. These are scarce goods.
Examples-food items,footwear,entertainment
Free goods are those goods which are gifts of nature and are unlimited .
Examples-air,sunlight,water falls.
3)Public and private goods :
Public goods are those goods which are owned and maintained by government bodies. These goods can be used by public .These goods have maintenance cost and often priced directly or indirectly.
Examples-roads,railways,electricity 
Private goods are those goods which are not freely accessible to general public for use.
Examples-private houses,resorts,gardens .
4)Consumer goods and producer goods:
Consumer goods are those goods which are finally ready for use by consumers.
Examples-bread , butter  used for consumption
Producer goods are those goods which are finally ready for use by producers .
Examples-tractors, harvesters used by farmers 
b)Utility : Utility is a want satisfying power of a good.
Features:
1)usefulness - Utility is not necessarily usefulness.For instance, drugs have utility because people purchase those.
2)Pleasuring - Utility does not always mean pleasure. Medicines have utility buy these are not pleasant to take .
3)measurement - Utility cannot be easily measured. It differs from person to person . Same thing can have different utility among different people.It is subjective in nature.
4)relativity - It differs for same good from time to time and place to place.For instance , A man who had cup of coffee an hour before does not like the same immediately.
c) Value : In prof . Taussig's view, "the value of commodity means in economics its power of securing other commodities in exchange ". 
The value of good is its purchasing power.
Example: If a set of tea cups can be obtained in exchange of 10 kg of wheat , then the value of these tea cups is measured by wheat exchanged for it. 
Value and price
The term value and price is different .value is inherent quality in a good, price is what it can get in market in terms of money. Those goods which are neither scarce not transferable , have value in use .Natural water and air have a value in use but no value in exchange . The value in exchange of a good is called it's price. 
d)Wealth : Wealth is the stock of all those things which have a market place. 
Examples -Bonds, shares, cars , houses and land  are wealth.
e)Capital : All those goods which can produce income when used in production is called capital .All capital is wealth but wealth is not capital .
Example - Knowledge can be capital if it can bring income upon use.

Comments

Post a Comment

Popular posts from this blog

Factors of production

Factors of production  The factors of production viz. land, labour, capital and management when combined in proper proportion and then used wisely can help to achieve higher level of efficiency in farming business. Use of any resource beyond its capacity can result in its rapid depletion and deterioration which may cause severe damage to sustainability of farming. Similarly, under utilization of resources or misutilization of resources may result in high cost of production and thus lower the efficiency of agriculture.  Contribution of Land in agricultural development Land in agriculture may  be used in a restricted sense though is complex and affects agriculture in several ways. It is essential for the habilitation of human beings and other living creatures. It is required for agricultural operation ,development of industries, growth of forest, building, road and rail transportation system on its surface. The contribution of land in agricultural development can be judged ...
Post a Comment
Read more

FUNCTIONS OF MONEY

FUNCTIONS OF MONEY Various functions of Money can be classified into three broad groups: a) Primary functions b) Secondary functions c) Contingent functions d) other functions Primary functions   a) Medium of exchange : Money must be commonly accepted by the people in exchange of goods and services to be successful medium of exchange.Money benefits the society in number of ways as a medium of exchange. -It offers sales and purchases through money. -It promotes transactional efficiency. -It allows freedom of choice . b) Measure of value : Money serves as common measure of value in terms of which value of all goods and services is measured and expressed. It has made transactions easy and simplifies the problem of measuring and comparing prices of goods and services. c) Unit of account : As a unit of account, it helps in developing an efficient accounting system . It provides basis for keeping account ,estimating national income,cost of a project etc. Secondary functions a) Standar...
Post a Comment
Read more

Role of capitalism

ROLE OF CAPITALISM IN DEVELOPING ECONOMY Capitalism is that part of the economics where there is no role of government agencies. The sole supe power of capitalism is in the hands of private owners. This means that if private is working on the behalf of government, instead of social welfare, their main objective is to have profits. Features Lack of intervention of government. Role of private firms. Role of price mechanisms. Advantages Encourages innovation Efficient firm incentives Consumers can choose services of their choice. Prevents government from interrupting. Creates climate of innovation and economic expansion. Helps in increasing GDP. Disadvantages Firms can gain monopoly power. Externalities damages the environment. Prone to boom and bust in the economic cycles. Inequality creates social division. Capitalist market crashes causes economic downturn , uneven business cycles. There is difficulty in mobilising unprofitable sector into profitable sectors. By taking advantage of poo...
Post a Comment
Read more