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
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) Depreciation : Depreciation is described as the loss of value of fixed assets in use on account of Normal wear and tear ,accidental damages and expected obsolescence. It is also called as consumption of fixed capital which refers to the value of fixed capital as consumed in the process of production.
*Obsolescence refers to the difference between foreseen and unforseen events such as change in demand or change in technology.
D) Stock : A stock is a quantity measures as a particular point of time those value which are measured at a specific point of time are called as stock. Capital and quantity of money are it's example
e)Flow :A flow is a quantity measured over a specified period of time . These are measured per unit of time period . Income, expenditure, consumption are it's example .
f) 4 sector of the economy
Household sector include consumer of goods and services. Household are also the owners of factors of production.
Producer sector includes those who are engaged in the production activity. For production ,the firms hire factors of production that is land ,labour,capital and entrepreneurial skills.
Government sector act as welfare sector maintaining law and order defence and other public service. It also act as producer of goods and services in public sector .
External sector also known as rest of world sector engaged in export and import of goods and flow of capital between domestic economy and other countries .
g) Real flow refers to the flow of goods and services among different sectors of economy.Flow of factor services from household sector to producer sector or flow of goods and services from producer sector to household sector may be cited as it's example.
h) Money flow refers to the flow of money from one sector of the economy to ther other sector of the economy .Flow of factor payments by producer sector to household sector and flow of money from household sector to producer sector may be cited as it's example .
i) Injections are those macro variables ,a rise in level of which leads to rise in level of output of economy . These include autonomous investment by Government,exports, government consumption expenditure. This leads to the expansion of circular flow
j)Leakages are those macro variables ,a rise in level of which leads to fall in level of output of the economy . These include savings,imports , government taxes . These leads to the contraction of circular flow.
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