The key factors of economic concern in an nation

Inputs Labour input is relatively easy to measure if one is content to count heads of persons engaged in production or, preferably, hours worked.

Government policy This refers to the government measures and regulations which have a bearing on trade - tariffs, quotas, exchange controls and invisible tariffs. See Article History Productivity, in economicsthe ratio of what is produced to what is required to produce it.

Cost-benefit analyses assume that for every decision, something must be gained and something must be lost. A variant of this is common in planning for developing countries that want to increase their productivity; information about target levels of productivity, together with expectations as to the growth of the labour force and some understanding of the relation between capital per worker and output per worker, helps in estimating the amount of capital investment needed to reach the target.

UntilIndia was faced with this problem precisely. Exchange rates reflect international goods and services in a country but not domestic consumption. For individuals, value maximization decisions may include choosing between name-brand products and generic products, and choosing between small or bulk sizes.

Community Environment People and families may make decisions based on their environment or community. In countries for which data from broad sectors and many individual industries are available, there is a rough correlation between growth in the quantity of capital per worker and increases in labour productivity.

The Netherlands have persons per square mile, Bangladesh 1, but the USA only 65 persons per square mile. Compared with achievements in measuring labour productivity, however, the progress realized has been quite limited.

We all know that the under-development of India, Pakistan, Bangladesh, Sri Lanka, Malaysia, Kenya and a few other countries, which were in the past British colonies, was linked with the development of England.

The US budget contains food, clothing and shelter. Each model relies on a number of assumptions, or basic factors that are present in all decision situations. Energy balance of the number of calories consumed from foods and beverages with the number of calories the body uses for activity plays a role in preventing excess weight gain.

Furthermore, the new agricultural strategy has given rise to a class of rich peasantry creating widespread disparities in the countryside.

This is one of the reasons of their backwardness. But if intermediate purchases are counted as an input for comparisons with gross output estimates, they are measured in the same manner as described for outputs. In consequence, productivity estimates are usually confined to the predominant business enterprise sector of an economy.

One reason for this is, of course, the relatively large share of labour costs in the value of most products. Hence there will be a tendency to substitute labour for other factors. Although ratios of output to persons engaged in production or to labour-hours are referred to as labour productivity, the term does not imply that labour is solely responsible for changes in the ratio.

In dynamic economies the supply of capital has risen faster than the size of the labour force, and wage rates have risen faster than the price of capital.

Factors that Influence the Economic Development of a Country

As the average levels of education, training, skills, and experience of workers increase, the weighted measures rise relative to unweighted measures of labour input. On the one handan increase in the productivity of, for instance, labour, since it means a decrease in labour requirements per unit of output, will tend to reduce the demand for labour.

Those gains that can be obtained solely through a reorganization of work or the use of better raw materials or the breakdown of restraining attitudes or practices may occasionally be dramatic, but they are always limited. Usually this ratio is in the form of an average, expressing the total output of some category of goods divided by the total input of, say, labour or raw materials.

Generally, borrowers living under more democratic regimes, where political and civil liberties are more respected, have had more success in international capital markets, Sobel said.

In this regard, African nations are generally disadvantaged. The strain on world resources is likely to be very large. Interestingly, there is an inverse correlation between GNP per capita and income elasticity of demand for food.

Methods of estimating changes in the physical volume of custom-built products, such as buildings or other major structures, have improved in recent years. The latest experiments in economic planning in China have shown impressive results. Corruption is rampant in developing countries at various levels and it operates as a negative factor in their growth process.

Qualitative changes in capital, reflecting advances in knowledge and skill and leading to the design and construction of improved capital instruments, offer an escape from this principle. Labour is by far the most common of the factors used in measuring productivity.

Included also are the education and skills of the labour force; the level of technology; methods of organizing production; the energy and enterprise of managers and workers; and a range of social, psychological, and cultural factors that underlie and condition economic attitudes and behaviour.

Further, these countries cannot raise necessary resources required for development either through colonial exploitation or by foreign trade. For tangible industrial production measures, quantities of the various commodities are generally weighted together by constant unit values.

Adult Obesity Causes & Consequences

Under assumptions of a linear homogeneous production function and a neutral technical change which does not affect the rate of substitution between capital and labour, Robert M. Nevertheless, the variation in how people respond to the environment that promotes physical inactivity and intake of high-calorie foods suggests that genes do play a role in the development of obesity.

In fact, natural resources are a necessary condition for economic growth but not a sufficient one. The stock of capital and the rate of capital accumulation in most cases settle the question whether at a juven point of time a country will grow or not.Labour productivity is an especially sensitive indicator of this economizing process and is one of the major measures used to chart a nation’s or an industry’s economic advance.

An overall rise in a nation’s labour productivity signifies the potential availability of a larger quantity of goods and services per worker than before and. A nation’s potential for economic investment, growth hinges on five key factors, study finds October 2, January 13, Click to.

Economic Prosperity Factors by Lillian Wade - Updated September 26, For both countries and individuals, economic prosperity is the key element to quality of life and is also necessary for the nation to be competitive in the world economy.

October 4, Inquiry Lesson Plan Ben Krystal What Factors Influence a Country’s Economic Activity? Overview No country is exactly alike in terms of economic activity. Video: What Is the Economic Environment in Business?

- Definition, Importance & Factors - Definition, Importance & Factors The economic environment in which a business operates has a great. Obesity is a complex health issue to address. Obesity results from a combination of causes and contributing factors, including individual factors such as behavior and genetics.

Behaviors can include dietary patterns, physical activity, inactivity, medication use, and other exposures. Additional.

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The key factors of economic concern in an nation
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