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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 phys...

Stages of a Trade Cycle

STAGES OF TRADE CYCLE

a) Depression : Depression (Slump) is considered as most critical and fearful stage of Trade cycle.Depression shows itself first in a substantial decline in output and employment ,prices and wages continue to decline.The fall in prices is more than the fall in wages .This further leads to redistribution of National Income.Incomes of shareholders go down fast which reduces the deposit with bank which in return follow the policy of credit  contraction. This causes depression to persist for a longer period.

b)Recovery : Recovery shows upturn of output and employment of the economy . It is the result of fresh demand arising from the consumer goods industries.Proces remain more or less stable,wages and other incomes show a noticeable rise. Profits start rising,income rises,consumer spending also rises which further encourages increased production. Soon,The other business activity also picks up . It is slow and halting process.

c) Prosperity : Rise in output and incomes of people induces increase in aggregate spending which has multiplier effect.Because of this, income rises faster. The whole process becomes self reinforcing . There is rise in investment, employment,fuller utilisation of productive capacity in the economy.There is substantial expansion of industrial and commercial activities.Finanvial institutions tend to expand credit as interest rates and discount rates goes up. Thus ,there is overall increase in productivity in the economy in this phase .

d) Recession : The end of prosperity phase comes because of tendencies in private enterprise economy prevalent during the boom conditions. As the prices rise,wages tend to lag behind which results in lagging behind the purchasing power of workers. The wave of pessimism gets transmitted to others sectors of economy. The projects in the hand may be abandoned in this.The whole system thereby runs into crisis. In this phase,there is fall in our purchasing power of general public reduces demand for consumer goods . The business world goes panicky.

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