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

MEASUREMENT OF NATIONAL INCOME

MEASUREMENT OF NATIONAL INCOME

There are three methods of measuring national income because national income can be looked at from three points as Total output , Total product ,Total expenditure. All these three are flows on the economy per period of time.

The three methods of measuring National income measures the same flow from different angles.When production takes place,factors of production are paid.There is an income flow and an output flow.Output is purchased by people through expenditure which give rise to income. Thus income,output and expenditure are thre facets of same coin.

The PRODUCT  METHOD
It is also known as inventory method or commodity service method. It consists of finding out the market value of all the final goods and services produced in a country during the period of an accounting year. In this method, the net production of all the industries in the economy are added up. The total of this would give us net domestic product at factor cost . By adding net income from the abroad to this total ,we get net national income at factor cost.This method requires census of manufactures and agricultural output.

The INCOME METHOD
This method consists of adding together all the income accruing to the factors of production by way of payments in form of wages,rents,interest and profits. The method give us national income according to distributive shares. 
Labour is paid in the form of wages ,salaries, supplements and in kind. All these payments when aggregated give us share of wages.
Another share is of capital rentals .For this ,the net interest ,rent,dividends needs to be found out.
The third share is income of self employed persons which consists of wages,rent,interest or profit.
When all three shares are added ,net national income is found . Adding depreciation to it we get gross national income.This Method  requires persons taxes data and financial statements of different enterprises.

The EXPENDITURE METHOD
This method involves the addition of personal consumption expenditures ,gross private domestic investment,state purchase of goods and services and net foreign investment.The aggregate gives GNP at market prices. Deducting depreciation from it gives NNP at market prices. Further deduction of indirect taxes gives us net national income at factor cost.This method requires extensive family budget data.

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