Cost-of-production theory of value

2.1 Development of Mincer Approach under the Human Capital Investment Theory Review the history of Human Capital Investment Theory is essential for a more comprehensive understanding of Mincer Approach. The modern human capital theory was mainly developed in the last 50 years, its main contributor is Theodore Schultz, who was the Nobel Memorial Prize Winner in Economic Sciences in the year 1979. Shucltz (1961) delivered his address during the 1960 American Economic Association, entitled…

An increase in money supply will result into an increase in the wealth of people who are holding the fixed value of money and lead to lower interest rates. Domestic goods will be made cheaper compared to foreign goods. The AD curve will slope down and this is because of the fact that a reduction in the price levels will increase the quantity of goods and services that are demanded. The value of money will depreciate and therefore the curve will shift to the left as a…

Introduction: According to the economic theory, world’s goods and services can be separated in two big sectors: Tradable and non-tradable. In the old days, any item that could be shipped was characterized as a tradable good and anything that couldn’t be shipped, like services or heavy goods was considered as non-tradable. However, technology and global communications have seen a sharp growth the last years and that led to a different perspective of that theory. Nowadays, with the help of that…

(2014) defines corporate strategy as the approach that a firm’s executives use to guide the firm’s direction (p. 151). The text discusses three different strategies: growth, stability, and retrenchment. A firm that is focused on increase its market value or revenue is said to have a growth strategy (Parnell, 2014, p. 153). Home Depot’s corporate approach is the growth strategy, demonstrated by its increasing revenue. Home Depot’s 2015 Annual Report (2016) states that Home Depot’s revenue…

provided a basic critique of classical economics based on the labour theory of value. Marx made a speech in 1848 and announced that he vote in favour of free trade “In a word, the free trade system hastens the social revolution. It is in this revolutionary sense alone, gentlemen that I vote in favour of free trade" . According to Marx free trade would create an international division of labour and thereby give to each country the production which is most in harmony with its natural advantage and…

There are two primary theories included in the classical trade theories, Absolute advantage (Adam Smith 1776) and Comparative advantage (David Ricardo 1817). In the 18 century, Adam Smith was published ‘An Inquiry into the Nature and Causes of Wealth of Nations’ to criticise Mercantilists, and present…

equation means that the total value of the quantity of money multiplied by velocity equals the money value acquired at the output. Regarding the equation of exchange, Velocity is presumed to remain constant. On the other hand, changes in M produce a similar change in the price level. In the vent of economic changes to full employment the degree of output changes in y. Every change cause change in P. This approach of the quantity theory of money specified a proportionality theory. The general…

newly integrated world while criticising the mercantilist ideas that the European countries had adopted during this period of time. The contrast between mercantilism and classical economists focuses on wealth being tied to gold vs. exchanging goods of value through trade. These early economists were aware of the negative externalities of that the trade system had introduced into the lives of working people, but often…

Two theories that take place together during a part of the movie is the feminist criminology theory and power control theory. The definition states that “Feminist criminology is primarily concerned with the victimization of women, such as female delinquency, prostitution and gender inequality in the law and the criminal justice system are also receiving attention”(Dr. Julian Herminda). This article concludes that “The power-control theory posits that gender differences in delinquency can be…

When we begin to see changes in forces of production where it is solely concentrated on a few hands, there are definitely going to be certain changes and reformation in the markets dictated on their terms and interests. It is extremely important to constantly remind yourself in what context Lenin…