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...

INDIFFERENCE CURVE ANALYSIS

Introduction to the analysis
A detailed study of indifference curve analysis was given by Prof. Hicks and Allen in the year 1928.They strongly criticized the cardinal utility analysis and gave thein own approach to consumer's demand known as indifference curve analysis. Later on,JR Hicks wrote down indifference curve in more detailed form published in 1939.

According to JR Hicks and Allen , a consumer makes comparisons of his satisfaction obtainable from the combinations of different commodities. Given the choice of two commodities, a consumer can easily tell us which of the two he prefer the most. The consumer is able to put the choice of commodities in order as first , second and third as he views these combinations from point of view of his satisfaction through the indifference curve analysis. 

Assumptions of the analysis 
a)Rationality :The consumer behaviour should be rational .It means that he tries to obtain maximum satisfaction out of his expenditure on consumer goods .
b)Scale of preference :The consumer should be able to arrange the available combinations of goods according to his preferences .Between the two combination he is assumed to be either indifferent or prefer one to another which is also called as scale of preference. 
c)Ordinal utility : Another assumption is consumer should measure his utility ordinally that means he should be in a position to rank the alternative combinations available to him by simple comparison of his satisfaction .
d)Diminishing marginal rate of substitution : It means that as amount of commodity with consumer goes on increasing he is prepared to exchange lesser and lesser amount of other commodity for equal units of that commodity whose amount is increasing.
e)Consistency :  It means that if a consumer is indifferent between A and B combination ,and also indifferent between B and C combination ,then he must be indifferent between A and C in any circumstances .
f)Transitivity :It means that if consumer prefers A to B ,B to C and C to D then he also prefers A to D . Likewise, if he declares his indifference between pairs of combinations separately ,then he us indifferent between all of them .
g)Continuity : It means that consumer is in position to rank all combinations of needed goods according to his preference .

Comments

Popular posts from this blog

MAJOR ISSUES IN INDIAN ECONOMY

Major issue facing Indian economy Introduction - After independence, India made progess in political, economic, social fields but many problems like poverty, unemployment and inflation are yet to be solved. Meaning - Economy means a money framework in which all economic activities of a country are explained. Indian economy is a mix economy whereby both private and public sector plays its role. The root cause of the 3 problems namely poverty , unemployment and inflation is population explosion that is increasing at very fast speed. These three problems are major challenges for Indian economy. Poverty Poverty has attracted attention of economists, sociologists and educationists . It exists when one is not able to get the basic necessities of life - food ,clothes and shelter. It is condition of lower standard of living, inability of an individual to get minimum requirement of food , education and health. It further indicates 3 direction  a) Economic inequality b) Economic dependence ...

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...

BASICS OF MACROECONOMICS

Basics of Macroeconomics   a) Capital goods : Capital goods are described as fixed assets of producers which are used in the process of production for several years. Plant, heavy equipment, machinery are examples. b) Investment : Investment is a process of capital formulation also known as the process of increase in stock of capital .             I =∆k Where I is investment and ∆k refere to the change in capital stock during the year. There are two types of investment  Fixed investment refers to increase in stock of fixed assets of producers during the period of an accounting year .Plant ,machinery are some of its examples.It is also called as fixed capital formation. Inventory investment are those stock which keeps varying . At a point of time,producers have stock of finished goods ,semi finished goods or raw material . These are called as inventory investment. Change in the stock of these are called as inventory investment of producers. c) D...