The way of organizing the economic activities by a society for its smooth living is called an economic system. The economic system is a macro aspect of economics with comprise of the legal and institutional structure under which all economic activities of the people are directed and motivated. Functions of an Economic System Each and every economic system has to perform … [Read more...] about 5 Major Functions of an Economic System (Explained)
Managerial Economics
5 Main Indicators of Economic Development (Explained)
The most often used index of economic development is a substantial increase in real national income. However, in recent years some of the indicators of economic development have been added. Indicators of Economic Development The following are the main indicators of economic development: 1. National Income Index Economic development takes place if real national income … [Read more...] about 5 Main Indicators of Economic Development (Explained)
8 Major Causes of Wage Differentials (With Examples)
Labour is a human factor of production and its all units are not identical because of differences in efficiency and productivity of labour. There is a wide difference in the wages of workers and this variation differs from one occupation to another, one industry to another, one region to another and even from one country to another. Causes of Wage Differentials The … [Read more...] about 8 Major Causes of Wage Differentials (With Examples)
17 Role and Importance of Small Scale Industries (Economy)
Small scale industries occupy an important place in the country's economy. This faces many serious problems, most of which are associated with the smallness of their operations. Role and Importance of Small Scale Industries The Small-scale sector plays a vital role in the growth of the countries. Following is the role and importance of small scale industries: 1. … [Read more...] about 17 Role and Importance of Small Scale Industries (Economy)
13 Negative Effects of Globalization (With Examples)
With respect to developing countries, globalization policy has both positive and negative aspects. Globalization leads to contraction or shortening of the world market. Negative Effects of Globalization The negative effects of globalization can be studied as follows: 1. Cut-throat Competition Globalization gives birth to the cut-throat competition which results in the … [Read more...] about 13 Negative Effects of Globalization (With Examples)
