Understanding the Circular Flow of Income
Meaning of Circular Flow of Income
The circular flow of money refers to the process whereby money payments and receipts of an economy flow in a circular manner continuously over a period of time. The various components of money payments and receipts are saving, investment, taxation, loans, government purchases, exports, imports, etc. These are shown in a diagram in the form of current and cross-current in such a manner that the total money payments equal the total money receipts in the economy.
Circular
Read MoreBritish East India Company Monopoly and Core Economic Principles
British East India Company Monopoly
The British East India Company (EIC) was granted a monopoly on trade in the Indian subcontinent by the British Crown, which gave the company exclusive rights to trade in the region. This monopoly was a crucial factor in the EIC’s rise to power and its eventual establishment of British rule in India.
Establishment
The EIC’s monopoly was established through a series of royal charters and grants, which gave the company exclusive rights to trade in the Indian Ocean and
Read MoreSpain’s Economic Transformation: 1959-2007 Cycles
Spain’s Economy: 1959-1974 Stabilization & Growth
1959-1967: Stabilization Plan and Initial Growth
- Starting with a stabilization plan, this period saw growth exacerbate the imbalance where Demand (D) exceeded Supply (S).
- Exports experienced strong expansion thanks to the new Peseta (PTA) exchange rate and accelerated growth in European economies.
- Rising prices (inflation) and the external deficit increased.
- In 1967, the PTA had to be devalued. Measures included freezing salaries and reducing rates.
India’s Economic Reforms, Human Capital & Rural Development
Impact of Reforms on India’s Industrial Sector
Key effects include:
- Decreasing demand for industrial products:
- Cheaper imports have increasingly replaced the demand for domestic goods. Domestic manufacturers face significant competition from imports.
- Infrastructural facilities, including power supply, have remained inadequate due to a lack of investment.
- Non-access to developed countries’ markets: A developing country like India often faces challenges accessing developed countries’ markets due to high
Understanding Globalization: Causes, Effects, and Growth Strategies
Globalization: Concept, Causes, and Effects
Globalization is the extension of economic relations between different countries, ultimately creating a world economy where each participating economy depends on the others.
Causes of Globalization
- Reduction of barriers to free trade, leading to increased trade in goods and services.
- Advances in transportation and the revolution in new technologies, especially communications, computing, and the Internet.
- The incorporation of former communist bloc countries
Self-Employed Workers: Requirements and Scope in Agriculture
Self-Employed Workers in Agriculture: Requirements and Scope
Under the Special Scheme for Self-Employed Workers, individuals will be included if they are self-employed on their own farm, over 18 years of age, and meet the following requirements:
- Be owners of a farm and derive at least 50% of their total income from agricultural activities and other complementary sources.
- The proportion of income deriving directly from farming of their holding is not less than 25% of their total income.
- Working time