Pranav K Desai's Agricultural Economics PDF

By Pranav K Desai

ISBN-10: 8176222089

ISBN-13: 9788176222082

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Example text

The competitive employment equilibrium positions in the labour market are consequently indicated by the intersections of these curves with the industrial supply curve, iL, points PO' PI' P2· Let us suppose that there exists a stock of real capital goods of volume Ko in the industrial sector. The equilibrium employment position is then determined by curve Mo and indicated by the point Po. At this point, the industrial sector is making profit (represented by the shaded area PPO) and the magnitude of total real wage income is Wo (OLo PoP).

In Japan, for example, in the last two decades of the 19th century, the land tax was over 80 per cent of the central government taxation. Forced extraction of surplus from agriculture by taxation or arbitrarily keeping low prices of agricultural products have been other measures taken by different governments to transfer funds from agricultural sector to non-agricultural sector. 40 Agricultural Economics On the voluntary basis, the farm sector may, of its own, lend or invest its savings in the growth of the non-agricultural sectors.

Therefore, every increase in the surplus brings about more specialisation in industry through the division of labour. Ricardo Ricardo had scientifically explained the idea of Adam Smith. Ricardo considers agriculture as the most important sector of the economy. The difficulty of providing food for an expanding population serves as the focal point for his entire analysis. The central problem for classical economists was the analysis of the overall movement of the economy through times involving changes in population, capital accumulation and technical progress.

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Agricultural Economics by Pranav K Desai


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