REVENUE CONCEPTS AND RETURNS TO SCALE
Definition Revenue is amount of money which individual, firm or government realizes (obtains) in a given period, Individuals and firms obtain revenue either from production and sale of goods or Continue Reading
PRODUCTION POSSIBILITY BOUNDARY
Definition “Production Possibility Boundary (PPB) is a curve that shows the alternative combination of goods that a country can produce if all her existing resources are fully utilized”. ‘Fully utilized’ Continue Reading
EXPENDITURE METHOD OF MEASUREMENT OF NATIONAL INCOME
‘The sum of expenditures of individuals, firms, governments and foreigners gives the expenditure calculated GDP.’ It involves calculation of all expenditures made on final goods and services by Individuals, firms Continue Reading
INCOME METHOD OF MEASUREMENT OF NATIONAL INCOME
‘The sum of rent, salary, interest and profit gives the lion share of the income -calculated GNP’ The income method is in line with the definition of national income as Continue Reading
OUTPUT METHOD OF MEASUREMENT OF NATIONAL INCOME
“The sum of values of goods and services created in the economy gives the output calculated GDP.” The output or value-added method does not calculate the values of goods at Continue Reading
FACTORS THAT DETERMINE THE NATIONAL INCOME OF A COUNTRY
Availability of natural resources: A country with abundance of natural resources will experience increase in national income than a country with little or no natural resources. Level of technology: A Continue Reading
WAGES AND SALARY
Wages and Salary are rewards for labour’s services. They are amount of money paid to labour for their involvement in production of goods and rendering of services. Wages are rewards Continue Reading
UNEMPLOYMENT
Introduction Unemployment exists if the number of people who are willing to work and seeking jobs exceeds the number of declared vacancies. That is, supply of labour exceeds demand for Continue Reading
EMPLOYMENT AND UNDER-EMPLOYMENT
Employment It is an act of giving jobs to people by an institution (company) in return for wages. Employment of labour occurs when jobs are given to applicants or people Continue Reading
DEMAND FOR LABOUR
Introduction Demand for labour is a derived demand. Labour is not needed for his own sake but for the goods and services he can produce. Secondly, the demand for labour Continue Reading