The Monetary System

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The Monetary System When you walk into a restaurant to buy a meal, you get somet~g of value-a full stomach. To pay for this service, you might hand the restaurateur several worn-out pieces of greenish paper decorated with strange symbols; government buildings, and the portraits of famous dead Americans. Or you might hand’ him a single piece of […]

Economies of large-Scale Production

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Economies of large-Scale Production Efficient  of Capital Equipment. There is a large scope for the u ‘e of machinery which results in lower costs. A large producer can in  an up-to date and expensive machinery. He can also have his own repairing unit. Specialized machinery an be employed for each Job. The result is that production is very economical. A […]

SCALE OF PRODUCTION

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SCALE OF PRODUCTION The scale of production has an important bearing on the cost of production. It is the manufacturers’common experience that larger the scale of production. the lower generally is the average cost of production. That is why the entrepreneur is tempted to enlarge the scale of proud son so that he may benefit from the resulting […]

CYCLE OF POVERTY AND ILLITERACY

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CYCLE OF POVERTY AND ILLITERACY Thus, under  developed economies are caught up in the vicious circle of poverty on both the supply and the demand sides of capital formation. Once the vicious circle is broken and the country starts developing, the growth becomes cumulative and then these vicious circles become beneficent. Get Any Economics Assignment Solved for US$ 55

Who is an Entrepreneur in a Joint Stock Company?

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Who is an Entrepreneur in a Joint Stock Company? The main parties involved in a joint stock company are the shareholders, directors and the management. The shareholders have risked their money but-they do not exercise any control over the business except in a very small corporation. There is thus a divorce between the two functions of an entrepreneur, viz., ownership (risk – […]

ENTERPRISE

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ENTERPRISE The role that the entrepreneur plays consists in co – coordinating and correlating the other factors of production. He starts the work, organised and supervises it. He undertakes to remunerate all the factors of production: to pay rent to the landlord, interest on the borrowed capital. and wages to labor, and pays them in advance of the sale of goods. […]

Foreign Capital

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Foreign Capital Capital formation in a country can also take place with the help of foreign capital, i.e., foreign savings.Foreign capital can take the form of (a) direct private investment by foreigners. (b) loans or grants by foreign governments, (c) loans by international agencies like the World Bank. In recent days foreign capital is playing a vital role in the […]

Mobilisation of Savings

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Mobilization of Savings The next step in the process of capital formation is that the saving of the households must be mobilized and transferred to businessmen or entrepreneurs who require them for investment In the capital market funds are supplied by the individual investors (who may buy securities or shares issued by companies), banks, investment’ trusts, insurance companies, finance corporations, government, etc. If […]

Meaning of Capital Formation

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Meaning of Capital Formation Capital formation means the increase in the stock or real capital in a country. In other Capital Formation involves making of more capital goods such  as machines, tools, factories, transport equipment, materials, electricity, etc., which are all used for further production of goods. For making additions to the stock of capital. saving and investments are essential. Professor […]

Importance of Capital

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Importance of Capital Capital plays a vital role in the modem productive system. Production without capital is bard for us even to imagine. Nature cannot furnish goods and materials to man unless he has the tools and machines. Because of its strategic role in raising productivity, Capital occupies a central position in the process of economic development. In fact, capital […]