Consumption of fixed capital

Pakistan, we cannot strictly apply the principle that with uneven distribution of income the savings rate will be high. That principle is based on the assumption that the rich class has a very high MPS. But the upper class in Pakistan has a very high consumption (on luxuries) and relatively low savings. The poor class cannot save because of their low income. As a result, the savings rates in Pakistan are amongst the lowest in the world. This lack of savings is supposed to be one of the basic…

Financial Accounting may be defined as the science and art of recording and classifying business transactions and preparing summaries of the same transactions and preparing summaries of the same for determining profit or loss and the financial position of the concern. The object of is to find out the profitability and to provide information about the financial position of the concern. Its purpose is to provide information for others to the value of a company. It is concerned with record –…

Grossman suggests that the: cost of health capital = r + where r is the interest rate and is the depreciation rate. Thus as r decreases, the cost of health is decreasing as well. With lowered costs of health capital, the consumer does not have to spend as much to purchase health / medical services. In addition, because costs have decreased, consumer health increases at a higher…

customers ? Like which food they like most whether it is Punjabi, Chinese, Gujarati dishes, south Indians, fast food, etc and how much they demand for the particular item. And for fulfillment of this demand we have to check that how many amount or capital we needed ? The market analysis includes the following things. 1) Demand analysis : It consider that what is and how much demand of various food in the market or in the bardoli town. And also in which time they demand…

In order to discuss and analyze procurable effects of the current economic state of Algeria, it is imperative that background information be evident to support the overall claims and verifiable truth of the country economic well-being through erudition of the social, political and economic institutions. Since Algeria’s independence in 1962, they have increasingly progressed their economic well-being in Africa as they began to modernize in 1970 (The World Factbook: ALGERIA, 2016). Currently, the…

realization of surplus. Elaborate on the particularities of capital/labor relations, labor markets, capital/state relations, the technological and organizational issues, and the geography of accumulation. (10 Points) The Great Depression of the 1930’s was a time of crisis for capital accumulation. Through coercion, cooptation, and cooperation,…

One method of depreciation is the direct method. This method of depreciation even charges costs throughout a fixed asset’s useful life. The direct method of depreciation would be suitable in a situation whereby an asset’s economic benefits have the expectation of being realised in an even manner, over its useful life (Accounting-simplified.com, (2015)). This method of depreciation is also thought to be useful when, in regards to the pattern of economic benefits expected to be attained over an…

Economies: Similarities and Differences Economics is the study of the economic problem; how to satisfy unlimited wants with finite resources? Individuals, businesses, and governments must all make conscious, rational decisions as to how these wants are fulfilled, and what the implications of these choices are – primarily those of opportunity cost and allocative efficiency . Economies aim to achieve a sustainable balance between immediate utility of wants, and the continuation of growth and…

3- The Economy of Canada: (The industry and oil reserves in Canada: As a high-tech industrial community in the $ 1 trillion category, Canada resembles the United States in its market-oriented economic system, production pattern, and high standards of living. Since the Second World War, massive growth in the industrial, mining and services sectors has transformed the nation from a rural economy into a largely industrial and urban one. In addition, the country's oil sector is expanding rapidly, as…

Both consider the rate of population growth to be geared to changes in demand, which in turn, are geared to the rate of capital accumulation. Both relate the rate of population growth to the position of money wages relative to subsistence wages. In contrast to Adam Smith Ricardo considers the size of the subsistence wage to be a variable rather than a constant. Population…