Surplus Critical Thinkings Samples For Students

Conflict between Capitalists and Landlord

There exist diminishing returns to scale in the agricultural production due to the limited amount of land. When the world population increases, then the production of the agricultural production increases while more people are hired in the agricultural production. The surplus is distributed to the landowners (as rent), to the workers (as the wage), and the capital owners (as profit). Under the condition of diminishing returns, the agricultural production cannot increase the surplus to increase the profits, the wages, and the rent. The rent is fixed for the limited amount of land; therefore, the capital owners and the workers ...

Value calculation is used to determine the exchange value of goods according to the Marx's law of value while price is calculated to determine the same exchange relation but according to the Law of Equal Rate of Profit.

Abstract labor as the only substance of valuenot use value

In capitalism , the capitalist is concerned with the means of production .He purchases the labor power or the capacity of the labor to work. The capitalist doe not have knowledge or interest about the useful labor or the specific use values of the labor. He hired the worker only to produce the commodities that will be exchanged in the market. So ...

What is use value?

According to Marx every commodity has two characters – one is use value and other is exchange value. The use value of a commodity refers to the satisfaction or utility that an individual derives from the use of the commodity.

What is exchange value?

The exchange value of a commodity is the amount of other commodity which is obtained in exchange for one unit of this commodity.

What about money?

Money is the special commodity and functions as universal exchange equivalent.
Relationship between use value and exchange value
Use value means a relation between consumer and object consumed and is a subjective relation. But if a commodity ...

A quota is a trade restriction imposed by the government that limits the amount or value of goods imported or exported into a country (Carbaugh, 2010, p. 151). An import quota affects the consumers, producers and the national welfare. Firstly, a quota reduces the supply of a commodity in the importing country’s domestic market. The reduction in supply causes an increase in market price thus leading to a decline in consumer surplus (Carbaugh, 2010, p. 151). However, the increase in market price benefits both foreign and domestic traders hence producer surplus increases (Carbaugh, 2010, p. 151). However, the ...

The Impact of U.S. deficit, Surplus and Debt

The gross domestic product is simply written as illustrated below where;

C – Consumption, I – Investment, G – Government spending, X- Exports, IM - Imports
GDP = C+I+G+ (X – IM)
Therefore, a U.S. budget deficit, surplus, and debt have different effects on Phoenix University student and exporters such as the domestic automotive manufacturers such as general motors and ford. More exports are favorable than imports as they add positive value to the GDP. To begin with it is crucial we understand what the three phenomenon mean. A budget deficit occurs when government spending surpasses revenues collected from taxation. A surplus occurs when ...

Considering the losing market sales in domestic industry and in order to protect the domestic manufacturers, Indian Government imposed a ban on import on duty free flat panel TV’s. Prior to ban and additional import duty regulation by the Indian Government, leading TV manufacturers, Samsung, LG, Panasonic and Sony were running their production capacity to only 60-70% and were refraining from making additional investment for expanding their capacity courtesy to low demand from domestic consumers. The decreasing domestic demand was a result of underground TV market being run by grey marketers who were being benefitted from duty free import and ...

In production, when the price of capital changes due to the relative change in labor than capital becomes cheaper and labor dearer. The capitalist then substitute the cheaper one for the costlier one.
Figure 11.4, 11.5,11.6
In the figure 11.4 shows the VMPL curve, which is MPL multiplied by price of the output. The curve is diminishing which shows that the amount capitalist will add to increase his revenue by hiring one more labor at different levels of employment.
The figure 11.5(a) shows that in the labor market the part of the labor that will be employed ...

http://nypost.com/2016/02/19/are-we-finally-moving-beyond-the-hook-up-culture/
Chelsea Samelson writes for the New York Post in this article regarding how American’s views on sex have changed in the last decade. The article essentially summarizes a study conducted by OKCupid, where both men and women were asked “Would you consider sleeping with someone on the first date?” and “Would you date someone just for the sex?”
The results of the questions revealed that in response to the first question, there was a 19% decline in participants answering yes. For the second question, there was a 10 percent decline. According to Samelson, this says a lot ...

It is correct that the advent of the internet has brought tremendous benefits to the consumers in various web platforms. The gains range from vital information that consumers are now able to extract instantly from the internet to the ease of connecting with friends and family. The internet has been a tool that saves so much time and resources that would have been used in its absence. Most of these benefits that people derive from the internet are priceless in terms of the impacts that they make in people’s lives.
Quantifying the gains that consumers derive from the ...

Introduction

“Foreign aid consists of all resources – physical goods, skills and technical know-how, financial grants (gifts), or loans (at concessional rates) transferred by donors to recipients” (Riddell 2007, 17). It can be in three different forms: bilateral, which is from one country to another, multilateral, which is from institutions like World Bank and IMF to other countries or institutions, and NGOs based foreign aid (Riddell 2007). The idea officially started from post World War Two even though many countries are found before that too helping the other countries in various forms of aid (Hjertholm and White 1998). The objective behind ...

A market is a system through which the buyers and sellers of a product interact. Markets can be identified by the product it deals in. For example market for computer software, market for crude oil etc. Markets can also be distinguished by the geographical expanse like the local market or the international market for a product. In economic analysis it is more important and more usual to classify markets in terms of the degree of competition present in the market. In this mode of classification we consider two forms of market, the buyer’s market and the seller’s market.
In ...

FacilitatorDate:

Farm subsidies provide a strategic approach of addressing the challenge of obesity in America. Some government policies in America allow production of corn in surplus to cater for the increased demand. However, most of the Americans do not take enough exercise to cater for over 50% increase in calories from cheap corn (Wilson, 2008). Obesity increased due to this factor hence production of farm subsidies provides an effective strategy of dealing because these foods have low calorie. By providing fewer calories to the body than the corn do, the subsidies undoubtedly provide the best food for the Americans in an ...

Effects of credit crunch/ensuing recession on political economy decisions

The 2007-2010 economic crisis is perhaps the worst economic disaster to hit the globe since the Great Depression of the early 1930s. The crisis spread instantaneously across the globe triggering deep recessions in developed and developing economies (Hudson, and Maioli, 2010). Assets were devalued, financial markets became turbulent, unemployment levels rose, and access to credit became limited during the crisis. The onset of the financial crisis marked the end of the highest growth cycle experienced from 2003-mid-2008. The causes of the crisis can be attributed to surpluses in the current account of China and other oil-based economies, which provided ...

Q.no.1:
The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some time. Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate. Show your answer using a graph.
Answer:
A depression is a severe economic downturn that lasts for several years. It is characterized by falling Gross Domestic Product (GDP) and high unemployment rates.
What started as a financial crisis in the ...