Individuals with the most assets (cash) keep getting wealthier, while individuals with few assets get poorer. A few administrations, like railroads and carriers, have issues advertising their administrations while keeping up moo costs. In these cases, government may step in to keep the administrations accessible at a sensible fetched to customers since the benefit benefits the society as a entirety. A few faultfinders of showcase economies say that greed is the driving guideline. They think that markets ought to not be permitted to benefit while causing potential hurt to the environment by utilizing up all accessible assets and contaminating the planet.
• Control over price: firms under this type of market structure do not determine the price and they do not accept the price. As the firms produce their own unique products they have their own control over the price in the market • Extent of the market information: In a monopolistic competitive market, both buyers and sellers do not possess full information of the prevailing market conditions. • Freedom of entry: Under this type of market structure, firms have freedom to enter or exit the market at any time they want. b) Short run and long run equilibrium of the firm Short
The economy has no advantage position in regarding the social structure, but is one social fact among others. Durkheim defines a social fact as an external thing that has intimidating force by which it exercises control over an individual thus this control can be economics, but it can also be philosophical. In fact Durkheim considered religion to be the important factor on the economy as well as law, morality, art, and political forms. Durkheim defined the term anomy as a condition where social norms are confused, unclear, or simply not present, this lack of norms inevitably causes irregular behaviour. Durkheim also argued that anomy could result from a sudden disturbance, crisis or rapid change of social and economic forces.
However, in the long run these will have an effect on unemployment that will rise up and getting even worse. Moreover, most people are unlikely to be happy to accept higher taxes as it reduces disposable income and the level of consumption. A reduction of government spending may result in less people will support the government. Demand side policies will bring down the price level (reduce inflation), but they will result in lower national output and rise in unemployment. Therefore, government could use supply side policies to deal with the unemployment situation such as in interventionist supply-side policies will increase the levels of human capital of an economy by support education and training institutions with subsidies or tax benefits and for market-based supply-side policies will reduce trade union power.
The imposition of tariffs generates deadweight loss of both producer and consumer surplus. The welfare of both parties is reduced. It leads to production inefficiencies meaning producers that are safeguarded by the government have little to no incentive to reduce their cost of production leading to higher average costs and x-inefficiency. Protectionism causes trade wars between countries. If one imposes trade barriers on the imports of another country’s goods, the country will face retaliatory action by another.
Shirkat-ul-Wujooh: - There is no investment; all partners purchase the goods and equipment through credit and sale with at spot or in cash. The earned profit is divided between them in agreed ratios. THE BASIC ROLES OF MUSHARAKAH For example; the parties should be mature when they are entering into a contract or starting a combine business. In a contract the parties must be free consent without any pressure, fraud or irresponsibility etc. There are some elements which are belonging to the contract of Musharakah which are summarized as
High interest rates invite inflation by encouraging consumers to consume more and save less. This will increase the demand for goods produced and hence firms and manufacturers will produce in excess to capitalize on the high demand. High production will lead to goods produced in excess not getting bought and hence destabilizing the market since the business people will want to cut losses and will lower prices drastically hence inflation and making it a necessary evil to engage the production units of a country. Inflation has many different effects that make it to be dubbed a necessary evil. One of these effects is the continued surge in prices while salaries and wages of middle income earners continue to be the same.
(1986) suggests that information asymmetry between issuers and potential investors is the reason of underpricing, therefore in order to attract investors, a discount price is offered. Beatty, R. & Ritter, J. (1986) indicate that firms that have more uncertainties will experience a higher level of underpricing. A higher degree of underpricing is necessary to attract investment from the investors if managers have better information than potential investors. This argument is further supported by Rock (1986) that a higher level of underpricing as compensation for lack of information obtained are given to uninformed investors.
b) Slow Industrial Growth Due to use of backward techniques of production our industrial sector is not at developing form. Its fewer production also creates shortage in market and caused of inflation. c) Increase in Wages & Salaries Present era labours are demanding high wages and salaries. Increment in wages and salaries it might be leads to increase in cost that increases the prices. On the other way due to high wages and salaries there is an increment in income and it reason in inflation.