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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 physical and
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Concept of revenue

CONCEPT OF REVENUE Meaning : The sale proceeds that a firm gets from the sale of its product is called revenue.  The revenue of a firm is its sale receipts or money receipts from the sale of a product. It is also called as sale proceeds. Total revenue Total money receipts of a firm from the sale of a given output is called total revenue. It is the total money receipts of a producer on account of the sale of his total output. Total revenue a firm earned is calculated by multiplying total sale by the price at which the product is sold.                  Total revenue= Output×price Average revenue   Average revenue is total revenue divided by the output . It is nothing but the sale price of the product.It refers to the revenue per unit of output sold .The price and Average revenue of a product is a same thing.                                   TR                      AR =_______                                Output Marginal revenue Marginal revenue is the addition made to the total reven
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CONCEPT OF COSTS

Concept of cost Meaning : Cost refers to the expenditure incurred by a producer on the factor (land, Labour, capital) as well as non factor (raw material) inputs for a given amount of output of a commodity. Types of costs  a) Money costs -Money costs refers to the sum of all payments to the factors of production engaged in the production of that commodity . It is the cost which enters the records of accountants of a company. b) Opportunity cost   - Opportunity cost is the forgone value of inputs measured in terms of currently available next best alternative that is sacrificed. c) Explicit costs - Expenditure incurred by the producer on the purchase of input from the market is called explicit costs. d) Implicit costs - Estimated expenditure on the use of self owned inputs is called implicit cost. e) Selling costs - Selling costs refer to the expenditure incurred by the producer in order to promote sale of the commodity. Expenditure on advertisement is selling cost f) Short -run cos
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INTERNAL AND EXTERNAL DISECONOMIES

Internal and external Diseconomies The economies obtained by a firm or an industry are ultimately limited.A point comes where some factors start operation in the opposite direction and the cost of production start rising .These factors are called as internal and external Diseconomies. Internal Diseconomies These are those factors which raise the cost of production bid a firm as its scale of production is increased beyond a particular point.  These include following given factors : a) Technical difficulties - A main reason for internal Diseconomies is technical difficulties of operating large sized firm. There is a limit to the division of labour and splitting down of production processes. As division of labour is pressed beyond a point, Indivisibility of factors comes in. Every machine has an optimum capacity for work and an optimum proportion with other factors. If this proportion is exceeded, internal Diseconomies follow. b) Unwieldy management - Another reason for decreasing return
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INTERNAL AND EXTERNAL ECONOMIES

Internal economies Those economies where a firm increases its scale of production,the reduced costs or economies which this firms gets as a result are internal economies. It means increasing returns to scale. These are the result of increased division of labour or use of improved production methods . The benefits of these economies is recieved by a firm according to its organisational efficiency. Factors for internal economies . 1) Technical economies : Technical factors also affect the returns to scale. Bigger firms are able to install suitable machinery and as a result they have lower costs of production because these industries make full capacity use of those machinery. a) When a firm increases its scale of production , it's average cost of production falls simply because of larger volume of production. b)A large firm increases its scale of production, it is enabled to link its production processes from the use of raw material to marketing of its finished goods. 2) Managerial e
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LAW OF RETURNS TO SCALE

Laws of returns to scale Meaning : The laws of returns to scale refer to the effect of changes in the scale of production. The responsiveness of output to a give proportionate change in the quantities of all inputs is called returns to scale. It shows what proportion output changes when there is some proportionate change in the amount of all inputs.  There are three possibilities of rate at which output changes in response to a change in scale of output i.e a) Constant returns to scale b) Increasing returns to scale c) Decreasing returns to scale Labour            Capital        Output       returns to   Units.               Units.                                Scale      1.                      1.                10.               Constant      2.                      2.                20.               Constant      3.                      3.                30.               Constant            1.                      1.                10.            Increasing      2.             
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Producer's equilibrium - Isoquants analysis

PRODUCER'S equilibrium - Isoquants  Meaning : Isoquants are also called as Iso-Product curves or production indifference curve presented by Modern economists. Isoquants are used in finding producer equilibrium . An Isoquant shows different combinations of factors of production which when used in production process yield equal production and the producer will be indifferent as regards choice among those factor combinations. Combination of    Units of     Units of    Output  L and K                   Labour       Capital    Of cloth       A.                            1.                  15.           100       B.                            2.                  11.           100       C.                            3.                    8.           100       D.                            4.                   6.            100       E.                             5.                   5.           100 In the table, it is assumed that there are two factors of production l and k are used
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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 c) E
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Agricultural productivity

AGRICULTURAL PRODUCTIVITY   Agricultural Productivity of both land and labour is low in India. There are variations in productivity within the country and it is also low if compared to other countries of the world . It also provides that what measures should be adopted to improve the productivity of food and non-food crops and what measures are being adopted by the govt. to improve the productivity. CAUSES OF LOW PRODUCTIVITY IN AGRICULTURE   Millions of people still suffer from malnutrition and under nutrition which leads to starvation. There is no single reason for low productivity in agriculture in India. The causes of low productivity are as follows : (A) General Causes 1.Excessive Pressure of population on land . The heavy pressure of population on land is caused by the limited growth of employment opportunities in the non-agricultural sector for rural people and rapid growth of rural population. In 2011, about 52 percent of the population were employed in the agriculture-sector.
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Minimum support price scheme

MINIMUM SUPPORT PRICE SCHEME The best way to support agriculture is to invest in agri -R&D,agricultural-extension systems and connect farmers to lucrative markets,domestic and external, by building efficient value chains.  Giving farmers their right to choose technologies and best market is fundamental to the functioning of agri-system.  Minimum support prices (MSP) need to be made as legal instrument.  [It means that no one is allowed to buy crop below its MSP. But if it is accepted, it will turn out to be anti-farmer. ] Reasons  •It ignores that prices are decided by demand and supply.  •In case of surplus, which happens during harvest, prices fall to clear market.  •If MSP is above market clearing price, no one from private sector will buy.  •In this case, govt. Has to buy the farmers's produce otherwise farmers will turn to be worse off.  The govt. Declare MSP for 23 crops where the procurement happens largely to rice and wheat.  Why MSP crops and why not other agri prod
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