Kushal Pens

Modern Quantity theory of money The concept of modern quantity theory of money is developed by Prof. Milton Friedman in his essay "The Quantity Theory of Money- A Restatement". He defended the concept of the fisher quantity theory of money with his revised version at the point of time where Keynesian concept of monetary was leading the thoughts. He put-forward his new demand function. Friedman viewed that the money demand function is most stable function in the economy. People demand money because it is considered as a wealth. A part of money is held by people parting a portion for investment in capital assets. For firms demand for money is considered as capital goods which when combined with other factors of production leads to the production of goods and services. In nutshell, Firms demand for money- as capital goods Individual/people demand for money- as durable consumer goods, hold money in form of BFIs savings and capital assets like, equity and bonds...

Famous book list from renowned economist Economics is known for study of optimum usage of resource which limited addition in nature to bring perfect distribution among the living stakeholders of the society. Norwegian economist Ragnar frisch (first Nobel price winner in economics, 1969) coined the term "Micro" and "Macro" with concept of "econometric" in economics in 1933. Every idea in economics is either termed with micro or macro economics. From the point of political-economic system of a country the environment of economic well-being is found prevail in three either way. a) Pure capitalism: Ownership in private property, free movement, fair competition and minimal or no intervention of government found under this political-economic system. Great faith in self interest of human being kept here and believed that things/resources gets assigned automatically where it is most necessary. European nations and USA are known for this system of e...

In law of variable proportion theory there are three stages of production, which stage can be considered ideal stage to producer for continuing the production? Why other stage is not suggested ? The concept of three stages highlighted in Prof. Dr. Alfred Marshal initiated majorly with other classical economist theory of variable proportion here we use a figure. (Figure is taken from internet for reference) In the given figure, TP is shown rise from convex to concave, remains still for short period and falls down with the increase in additional unit of labor. The nature of average production, marginal and total are outlined under in three different stages as shown in the figure above. A. Stage I: This stage starts from the origin (0) and ends at the point where AP is maximum or point where MP and AP is equal to one another. The common nature of this stage is: a. TP increases at increasing rate up to the point where MP is maximum and then increases at decreasing/...