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

PRODUCTION FUNCTION

PRODUCTION FUNCTION
Meaning : The relationship between the input and resulting output is generally summed up in mathematical form which is called as production function.The word 'function ' in mathematics means the precise relationship that exists between one dependent variable and many independent variables. 
The production function formalised the relationship between the maximum quantity of output yielded by productive process and quantities of various inputs used in that process.
Production function thus studies the functional relationship between physical inputs and physical outputs of commodity. It is purely technical relationship between material output on one hand and material inputs on the other. It is expressed in terms of following equation:
                Qx =f(l, k)
It means that production of commodity X is the function of labour (l) and capital (k).

Fixed factors are those the application of which does not change with the change in output. Fixed factors like machines is there even when output is zero.
Variable factors are those application of which varies with the change in output. Labour is an example of variable factor. Variable factor is zero when output is zero, it increases as output increases.

Total product is the sum total of output produced by all the units of variable factor along with some constant amount of fixed factors used in the process of production.
                    TP = sum of all the units 
Marginal product refers to the change in total product when one more additional unit of variable factor is used.
                    MP = TPn -TP n-1
Average product is the physical output per unit of variable factor used in the process of production. 
                             
                AP =_TP / L_______
                          

Comments

Post a Comment

Popular posts from this blog

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

CONCEPT OF ECONOMICS

ECONOMY Economy refers to a system of a particular area that shows how people of the concerned area earn money. It shows the nature of all the economic activities in that area.  ECONOMICS Economics has been derived from Greek words i.e "Oekos" and "nomos" .The former means a house and the latter means to manage . By combining the both it means managing a houshold. It refers to the study of how society choose to enjoy scarce resources that have alternatives uses. In other words, it is a social science that focuses on management of scarce resources in such a manner that both individual and society can attain maximum benefit. ECONOMIC PROBLEM It is the problem of choice or problem of allocation of scarce resources to their best alternative uses.  It mainly arises out of the given two facts: a) Resources are scarce . b)Resources are unlimited and have alternative uses.  ECONOMIC ACTIVITIES These are those activities which are related to how one can make use of scarce re...
Post a Comment
Read more

COMPONENTS AND TYPES OF ECONOMICS

COMPONENTS OF ECONOMICS a) Consumption : The study of consumption and consumer behaviour relates to the study of consumer where he has to allocate his means (income) on the purchase of goods and services so that his satisfaction can be maximised. b) Production : The study of production or producer behaviour relates to the study of producer where he has to choose such combinations of diferent inputs within given price which are least expensive so that he is able to maximise his cost of production . Also , how he choose to produce those goods and services within given prices ,the production of which offers him maximum revenue, so that his profit can be maximised c) Distribution :The study of distribution relates to study of how income is distributed among those who are the agents of production. Here, the agents of production refers to the owners of factors of production. There are 4 factors of production : 1) Land   - The income is distributed to the owners of land(used in product...
Post a Comment
Read more