Difference between Price and Value: Price Value Price is the amount one pays to acquire the product or service. Value is the utility of the good or service to the consumer. Price is numerical. Value cannot be calculated in numbers Price is what it can get in the market in terms of money. Value is inherent quality in a good. Value in exchange of a good is price. Value is a person’s opinion about the worth of the product or service. Price do not varies from person to person. Value varies from person to person.
Posts
Rational man and Normal man: Rational man Normal man Rational man conducts only those activities which give him the maximum satisfaction or maximum profit. Normal man does his economic activities in a normal way within the legal framework. Rational man has unlimited wants. Normal man has not unlimited wants. Rational man acts after due thought in a sensible manner. Normal man not necessarily have due thoughts.
Differences between Economics and economy Economics Economy Economics is the social science which describes the factors to determine the production, distribution and consumption of goods and services. Economy is economics at play in a certain region. It describes subject matter related to economy. It describes boundary. Economics is the branch of knowledge concerned with the production, consumption, and transfer of goods and services. Economy is the state of country or region in terms of the production and consumption of goods and services and the supply of money. Eg; micro-economics , macroeconomics etc. Eg; Nepalese economy, Indian economy etc.
Real income and money income Real income Money income Real income is purchasing power of our money income. Nominal income is income expressed in money terms. In real income the inflation rate is also been adjusted. Nominal income is the monetary income before the deduction or accounting of inflation. Real income tells us our actual capacity to spend in the amount of goods and services. Nominal income only tells the amount of money that we have received either as salary or business profit. Real income is measured in constant dollars It is income measured in current dollars.
Based on payment: Costs are classified into two categories; Explicit Costs and Implicit Costs. Explicit cost is the cost which is actually incurred by the organization, during production. On the other hand, implicit cost, are just opposite to the explicit cost, as the organization does not directly incur them, but they are implied in nature which does not involve a cash payment. The former is an out of pocket cost, while the latter is an opportunity cost. Explicit Cost Explicit Costs are the costs which involve an immediate outlay of cash from the business. The cost is incurred when any production process is going on, or activity is conducted in the normal course of business. The cost is a charge for the use of factors of production like land, labour, capital and so on. They are in the form of rent, salary, material, wages, and other expenses like electricity, stationery, postage, etc. Explicit Costs show that payment has been made to outsiders, while busin
1. Farming system: Farming system defined as an appropriate combination of farm enterprises viz. Cropping systems, horticulture, livestock, fishery, forestry, poultry and the means available to the farmers to raise them for profitability. The farming system in its real sense will help in different ways to lift the economy of agriculture and standard of living of the farmers of the country as a whole. Farming system is a resource management strategy to achieve economic and sustained agricultural production to meet diverse requirements of farm livelihood while preserving resource base and maintaining a high level of environment quality (Lal and Miller 1990). Determinants of types of farming system: • Natural factors (climate, topography etc.) determine the type of farming in an area. • Economic factors-relative prices of farm products, resources of the farmer, farm size, • Physical and technological factors-transport facility, land val