Monday 23 April 2012

FACTORS OF PRODUCTION for 8C & 8D

Dear 8C & 8D students,
watch the following links.
http://www.youtube.com/watch?v=hG9PQHD5ROA

http://www.youtube.com/watch?NR=1&feature=endscreen&v=Q7KlMb4U0IA


Take a print of the following notes & past it in your note book:


Factors of Production

Anything which contributes to production is called a factor of production.
Land, Labour, capital, and entrepreneurship used by society to produce consumer satisfying goods and services are termed as factors of production, they  are also known as resources or scarce resources.
  • Land
            In economics land refers to all kinds of natural resources that are freely found
            in  nature ,which are limited in supply ,which can be controlled by man  and
            used in the production of goods. Reward for land is rent.

  • Labour can be defined as any mental or physical effort  (excluding entrepreneurial organization) which contributes to the production of goods and services for which it receives income. Reward for labour is wages / salaries

  • Capital refers to that part of wealth which is used along with labour for producing additional wealth .Reward for capital is interest.

  • Entrepreneurship is the special sort of human effort that takes on the risk of bringing labour, capital, and land together to produce goods. or services in the expectation of a future reward. That reward is called profit in economics.
Functions of an entrepreneur
¨      Management and control
¨      Risk and uncertainty bearing
¨      Innovation

Factor Income

bd14793_   Rent
It is the factor payments to the owners of land for using the various resources of land in the production of goods and services
bd14793_   Wages
A factor payment to the owner of labour for using labour services in the production of goods and services

bd14793_   Interest
It is the payments for the use of borrowed funds or the price paid for the use of loanable funds’
bd14793_   Profit
Profit refers to a reward enjoyed by an entrepreneur for his entrepreneurship or for his contribution to the process of production. It is a reward for bearing of risks and uncertainties and introducing innovations

Wednesday 4 April 2012

Case Study - Basic Eco problems


Dear VIII-B students, 
Take a print of the case study & solve it. I am going to check on MONDAY.  


A GERMAN TRAVEL COMPANY CONSIDERS ITS FUTURE

A German travel company decides to stop selling holidays in Italy and instead to offer holidays in a new destination. This is the Maldives, a group of island in the Indian Ocean, famous for their long hours of sunshine and sandy beaches.
Tourism is a fast growing industry. Not all families, however, are able to go on holidays whether at  home or abroad. Most of those who take holidays would like to have more holiday breaks.
a.       What evidence is there in the passage of scarcity?(3)
b.      Using examples identify three factors of production involved in providing holidays in the Maldives?(6)
c.       (i) Explain the difference between economic goods & free goods.(4)
(ii) Identify a free goods from the passage.(1)

Solve the project - HDI


Dear Student of grade 10 D & F
Take a print & solve the project
Assignment One
Microeconomics of Development


In this assignment you will have the firsthand experience is calculating the HDI for 100 countries. This would give you a better sense of the level of development in these countries and enable you to understand the role of education, health and income in economic development.
To get started

  1. Go to http://hdr.undp.org/en/statistics/data/

  1. Download the variables needed to calculate the HDI for 100 countries of your choice. Make sure your sample has at least 30 countries from each of the high, medium and low human developed countries. Download the GDP per capita (PPP) variable for these countries.

Is the HDI an improvement over the GDP per capita as indicator of development? Please answer in light of the following:

1.      Calculate the HDI for your selected sample. Compare with the HDI estimate provided by the UNDP.

2.      Compare ranking of countries by the HDI and by the GDP per capita (PPP) for your sample. [Sort countries from lowest to highest HDI values and GDP/N values]


3.      Do you see any automatic link between a nation’s per capita income and its level of human development?

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