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Yogita Ingle 5 years, 10 months ago
The circular flow means the unending flows of production of goods and services, income and expenditure in an economy. It shows the redistribution of income in a circular manner between the production unit and households.
These are Land, Labour, Capital and Entrepreneurship
- The contribution made by fixed natural resources (called ‘land’), payment for which is called ‘rent’
- The contribution made by a human worker (labour), payment for which is called ‘wage’.
- The contribution made by capital, payment for which is called ‘interest’.
- The contribution made by entrepreneurship, payment for which is ‘profit’.
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Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services manufactured in a time frame, often yearly or quarterly. Nominal GDP evaluates are commonly utilized to decide the economic performance of a whole country or region and to make international comparisons.
The welfare definition of economics is an effort by Alfred Marshall, an explorer neoclassical economist, to reanalyze his field of study. This definition elucidates the stream of economic science to a larger study of humanity. Particularly, Marshall’s view is that economics studies all the pursuits that people take in order to attain economic welfare. In the words of Marshall, “man earns money to get material welfare.” This definition expanded the scope of economic science by foregrounding the study of wealth and humanity simultaneously, rather than wealth alone.
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'Micro Units Development and Refinance Agency Bank (or 'MUDRA Bank) is a public sector financial institution in India. It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.
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Legal Tender – It is a medium of payment recognised by a legal system to be valid for meeting a financial obligation. Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation. It is the money issued by monetary authority or government, which cannot be refused by any person in payment for transactions. Government issues an order describing what is money and that becomes legal tender money.
For ex - In India currency notes and coins are legal tender money.
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Yogita Ingle 5 years, 10 months ago
When people have more money or the government encourages the production of money the income increases and so does the economy. their willingness and ability to buy a product increases. so when the government reduces the production of money the wants will decrease and the resources will be saved because they are limited. and the market might reach its equilibrium.

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Riddhi Pasari 5 years, 10 months ago
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