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

CONCEPT OF UTILITY

CONCEPT OF UTILITY
Meaning : The term utility refers to the quality of a commodity by virtue of which it can satisfies our wants. In other words utility can be called as a want satisfying power of a commodity. Utility is an economic concept that differs from pleasure and usefulness of a commodity .It is further assumed that utility can be measured cardinally i.e it is possible to know exactly the number of units of utility that a commodity contains for the consumer . The unit of measurement of utility may be called as utils.
Types 
a)Total utility : It is the sum total of the utility derived from the consumption of all the units of a commodity. 
For instance, if 2 units of a commodoty are consumed and ist unit yields satisfaction of 10 utils ,while the 2nd unit yields satisfaction of 9 utils ,then the total utility TU is 10+9 utils i.e 19 utils .
b)Marginal utility. It refers to additional utility on the account of consumption of an additional unit of a commodity .
For instance, if 10 units of commodoty yield satisfaction of 100 utils and 11 units of commodity yields satisfaction of 105 utils, then addition utility on account of consumption of 11th unit of commodity is 105-100 utils is 5 utils.
It can be measured as under :
MU =TUn -TU n-1
Relationship between TU and MU
a)As more and more commodity is used , MU derived from each additional units tends to decrease . It can become zero and even negative.
b)As long as MU is positive, TU increases.
c)When MU is zero, TU is maximum.
d)When MU is negative, TU starts decreasing.
e) Fall in MU implies ,TU increasing but at diminishing rate .
Assumptions of utility
a)It can be measured cardinal i.e in 1,2,3,4 units.
b) The consumer should be rational i.e if he chooses combination A & B and B & C then he cannot prefer C to A.
c) The consumer is assumed to maximise his utility under giver circumstances.
d) The prices should remain constant and consumer cannot be effected by prices. 
e) It will work only under the law of diminishing marginal utility i.e as more and more commodity is consumed , the MU of consumer tends to fall can become zero and negative.

Comments

Post a Comment

Popular posts from this blog

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

Tokenization

Tokenization  Tokenization is the process of turning sensitive data into non-sensitive data called "tokens" that can be used in a database or internal system without bringing it into scope.  •It can be used to secure sensitive data by replacing the original data with an unrelated value of the same length and format.  •The tokens are then sent to an organization’s internal systems for use, and the original data is stored in a secure token vault. •The purpose of tokenization is to swap out sensitive data—typically payment card or bank account numbers—with a randomized number in the same format but with no intrinsic value of its own. •Tokenization is the process of removing sensitive data from your business systems by replacing it with an undecipherable token and storing the original data in a secure cloud data vault.  Token will be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and p...
Post a Comment
Read more

Investment Multiplier

INVESTMENT MULTIPLIER The number of times by which the increase in ∆Y exceeds the increase in investment is called as Investment Multiplier.  Investment Multiplier or output multiplier refers to the number of times by which the increase in output/income ∆Y exceeds the increase in investment ∆I. It is measures as the ratio between change in output /income and change in investment.                                      k = ∆Y / ∆I Where k is the multiplier. Relationship between Multiplier and Marginal propensity to consume (MPC) There is direct relationship between Multiplier and MPC . Higher the value of MPC ,higher the multiplier .                   K =1 / 1- MpC This is because of the given reasons : a)Additional investment means additional expenditure in the economy, additional expenditure means additional income . b) Higher the value of MPC ,...
Post a Comment
Read more