We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Factors of production and circular flow of income - Coursework Example

Comments (0)
Summary
Economics Economics in broad terms refers to how people make their choices between scarce resources and allocate these resources in competitive uses. It is a social science that describes how people will seek to act.There are a number of models that economist uses that differentiates economics from other social sciences…
Download full paper
GRAB THE BEST PAPER
Factors of production and circular flow of income
Read TextPreview

Extract of sample
Factors of production and circular flow of income

Download file to see previous pages... This assumption is made in order to facilitate deductions from theories, holding all except one variable constant. For example the demand curve is drawn holding all factors affecting demand, except price, constant. (Wessels, 2006) Economics is built upon three concepts of scarcity, choice and opportunity cost. Scarcity refers to unlimited wants and limited resources that involve making a choice as resources need to be allocated in alternative uses. All economic agents face the basic economic problem and the choices they make involves a tradeoff. (Wessels, 2006) Economics can be divided into two parts that is Microeconomics and Macroeconomics. Microeconomics deals with individual units such as households, firms, markets etc. for example individual demand for bicycle in the economy, or market demand for cars. On the other side Macroeconomics deals with aggregates and the economy as a whole, i.e. what determines the price of all goods. For example aggregate demand for all goods and services in the economy. (Wessels, 2006) Analyses in economics are based on positive and normative statements. Positive statements refer that can be checked against evidence for example an increase in interest rates encourage savings. While normative statements refer to what should be , for example firms should be encouraged to invest. (Wessels, 2006) Factors of Production Land refers to natural resources that are created by nature and not those earning assets created by man. Labour refers to the physical and mental ability of a human provided to a firm. It includes the part of human population that is willing to provide to economics production. Capital that is also called as ‘reproducible capital’ that is the sum of earning asset created by man, while the last Entrepreneur is the risk taker and organizes other three factors of production. (Mokyr, 1985) There are certain characteristics of different factors of production but two common characteristics in all includes that all factors of production are limited in amount and they have alternative uses as well. At any point in time one can increase the amount of land, capital and labour it has but it important to note is that it is finite and cannot increase beyond its fixed a capacity. More over these factors of production can be used to produce many different goods and services and hence are substitutable and interchangeable at many levels. This helps one to decide what, how and for whom to produce. (Goldberg, 2000) Characteristics of labour are important in determining wages and volume of production. Firstly labour is a human factor and the active factor. It has its own will to do anything, likes dislikes and so needs to work along with other factors in production. Also labour is different in efficiency, skills, also is mobile and perishable. Each labour has different efficiency and can be moved between jobs. Quality of labour can be improved by improving its productivity by training, educating workforce and by providing them better medical facilities. (Marshall, 2007) Land is the primary and passive factor of production as it is the basis from which production starts and it cannot do anything itself as it has be operated by labour. It could be used in multiple ways such as for agriculture; setting up factory but it ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Consumer' Income
This makes sense intuitively since people would like to buy more of a good that costs less than a good which is priced higher. 6. Explain what causes an increase in quantity demanded. Give an example.  In economics, we typically use dimensional graph that has price of the good or services on x-axis and the quantity that people are willing and able to buy on y- axis.
4 Pages(1000 words)Coursework
SAAB's Cash Flow Problems
While people often talk of accrual accounting or matching the revenues and expenses of a period to work out the actual profit or loss incurred, it is the cash in the bank and on hand that are very much the most important indicators of business health. Even so called liquid assets as marketable securities, accounts receivable or merchandise inventory are known to provide much less than their book values in the event of an emergency or business failure.
6 Pages(1500 words)Coursework
Cash Flow Problems
Cash flow on the other hand refers to the inflow and outflow of cash into a business. Car Company Saab had to close down its business operations, after it failed to meet its expenses of paying its suppliers, who in turn stopped supplying the company with requisite materials.
6 Pages(1500 words)Coursework
Factors of production and circular flow of income
In addition, the components of these factors are elaborated and illustrated how they influence economy. Circular flow of income is also analyzed to provide the components, importance to the economy and a diagram of the flow is also given. Factors of production Definition: Factors of production refers to the resources that are needed for the creation of goods and services.
5 Pages(1250 words)Coursework
Factors of production and circular flow of income
In other words, economics is about efficient allocation of scarce resources (Wessels, 2006). Since resources (factors of production) are very scarce and human wants are unlimited, we have to allocate them efficiently for the welfare of all citizens thus the need for economics.
6 Pages(1500 words)Coursework
Income Tax


 1. Ronni received additional income from investments and property which was included in the Income Statement as shown below: 
Building society income received £5000 
Rent received from rental
8 Pages(2000 words)Coursework
Cash flow
According to the author of the text, cash flow can be defined as the money which comes in and goes out due to different financial, investment operating activities. Controversially, net profit is the amount remained from sales revenue after the deductions of all expenses of the firm.
4 Pages(1000 words)Coursework
Cash Flow Statement
On the other hand, net operating cash flow refers to amount that business remains with after deducting its ongoing expenses from the amount set aside to cater for such expenditure. Conversely, amount available in the business after subtracting expenses does not readily reflect net income of the business since several discrepancies contrast the two figures.
4 Pages(1000 words)Coursework
Income statement
Thus, the revenues of a business are indicators of the business capability to meet its core objective of earning profits. The revenue of a business also indicates the financial performance of the business as a whole as well as the
4 Pages(1000 words)Coursework
The Circular Economy
The electrical parts are not manufactured and are procured from its suppliers and are used in the assembly of the powered garden tools. Manufactured powered garden tools include leaf blowers, hedge trimmers, wood chippers, lawn mowers, etc. The company does
12 Pages(3000 words)Coursework
Let us find you another Coursework on topic Factors of production and circular flow of income for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us