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Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities :  Karnataka State Open University is located in Manasagangotri, Mysore. It is recognized as one of the best Open Universities in India imparting Distance Education. The University was established during 1996 and the library started functioning in the same year. It has a glorious record of worthy service with a multi disciplinary resource collection of more than one lakh volumes. At the inception of Library, the collection of books was around 50,000, which was housed in the main building of KSOU but later the Library was shifted to its own new building in the KSOU campus in 2006. It was inaugurated by Former Hon’ble Governor of Karnataka Sri T.N. Chethurvediji. The Library is housed in spacious, beautiful and attractive building situated in 1750 Sq.mts area. It follows the Dewey Decimal Classification system for organizing documents for its collection and identified as a best knowledge bank.

Apart from the conventional book resources, the library collection comprises of good number of the periodicals, reference books, Kannada Books collection, cartographic collections like Maps, Atlas and Globe, and also the institutional repositories. The library is having very good Collection of CD-Rom and also a rich collection of rare books. The Library plans to digitize these collections in future. The KSOU Library is open to the University user community for reading and reference, for which the user is required to provide a requisition to the Librarian, for the membership. The membership is given to Students, Research scholars and Faculty of the University of KSOU only.

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities : Here we are presenting you all “Some Important Karnataka Class 12 Commerce Economics Basic Problems Of An Economy ” . Download here Karnataka Class 12 Commerce Economics Basic Problems Of An Economy complete details in PDF Format.

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities :Economic analysis can be applied throughout society, in business, finance, health care, and government. Economic analyses is sometimes also applied to such diverse subjects as crime, education,[5] the family, law, politics, religion,social institutions, war,science  and the environment.

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities : Economics is a study of man in the ordinary business of life. It enquirers how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins (1932) developed implications of what has been termed ” perhaps the most commonly accepted current definition of the subject”: Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses.

Robbins describes the definition as not classifications in “pick out certain kinds of behavior” but rather analytical in “focus attention on a particular aspect of behavior, the form imposed by the influence of scarcity.” He affirmed that previous economists have usually centered their studies on the analysis of wealth: how wealth is created (production), distributed, and consumed; and how wealth can grow.

Download here Karnataka Class 12 Commerce Economics Basic Problems Of An Economy complete details in PDF Format.

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities : Production, consumption and capital formation are called the basic economic activities of an economy. Scarce resources are used in the production of goods and services with the objective of satisfying our needs and wants. The process of production of goods and services is carried by combining the factors like land, labour, capital and entrepreneurship. Factors are paid rent, wages, interest and profits for their productive services. The consumption activity consists of the use of goods and services for the direct satisfaction of individual or collective human wants. A part of current production is saved for future to add to existing capital stock like, plant, machinery, building etc. every year in order to expand production potential in future. So whatever is produced is disposed of either for consumption or for capital formation or both.

After completing this lesson, you will be able to:

  • understand production and its goals.
  • know the factors of production and factor incomes; know about consumption.
  • be familiar with the goods produced for consumption.
  • understand how production and consumption help in capital formation.
  • explain circular flow of economic activities.

PRODUCTION

In the last lesson you have read about scarcity of resources and making choice. These scarce resources are used in the production of goods and services. The goal of production is to satisfy our wants. These goods and services produced can be sold in markets or can be provided by the government to public at nominal charge. Therefore Production is defined as creation of utility. Production activities involve making of goods and services. People who make and sell these goods and services are known as producers. The producers combine the factors like land, labour, capital and entrepreneurship along with raw materials in order to transform them into various goods and services. Land, labour, capital and entrepreneurship are called the factors of production. The producers try to produce maximum amount of goods and services by using various combination of factors of production. Let us know more about these factors of production.

1 Land Land is a gift of nature.

It includes plain region, mountains and plateau region. The plain region is useful for agriculture and industrial activities. Mountains ensure flow of rivers into the plain region and provide facilities for tourism. Plateau region possesses reserves of minerals, fossil fuels and forests. Production of food grains, vegetables, fruits etc require agricultural land in the plan region. Along with this people also carry out animal husbandry, fisheries and forestry which are called allied activities. In India rural area is known for carrying out agricultural and allied activities. Some amount of land in the plain region is specially developed to establish industries and urban areas such as towns and cities.

2 Labour In general labour implies the human effort through physical and mental exertions in the production of goods and services.

A person working on the agricultural field is said to provide his physical labour while a writer of a book is said to provide his mental labour. People who provide labour are known as human resources. Production activities require both skilled and unskilled labour. Purely physical labour such as loading and unloading, ploughing on the field etc do not require special skill. But to become an engineer, doctor, teacher, lawyer, mechanic, electrician or tailor etc one must acquire skill through education and training.

3 Capital By capital, we mean all man made appliances and all types of wealth used in production.

Capital consists of machinery, tools, buildings, materials etc. Whereas land is a natural resource, capital is a man made resource. Capital is used to increase the efficiency of other factors of production like land or labour. The efficiency of land can be increased by use of better irrigation facilities and machines. However, capital is a passive factor of production and cannot be used without employing labour to work. Capital has a limited span of life, and becomes obsolete after a certain period. Small tools like, screwdrivers, calculators to heavy machines like engines, tractors, ships are all examples of fixed capital, as they can be used in production for many years. Fixed capital also includes the buildings and heavy machines. The working capital includes raw materials like cotton yarn, clay, seeds, fertilizers, which are usedup in the process of production.

4 Entrepreneurship Somebody must take the initiative to start the process of production of goods or services by bringing land, labour and capital together in right proportion.

He will be responsible for choosing the right type of land, labour and capital and take important decisions with respect to quantity to be produced, money to be spent to buy the factors and raw materials, marketing the output produced etc. Entrepreneurship is the art of organizing the production activity. The person who makes the decisions and controls the production process and bears the risks and uncertainties involved in production is called an entrepreneur. He/She should be knowledgeable, courageous and should possess leadership qualities. The objective of an entrepreneur is to get maximum production by using the given resources and make arrangements for the sale of the finished products. He/she is also responsible to make payments to other factors of production. He/she pays wages to the labourers, rent to the landlords and interest to the owner of capital in return for their productive services. Similarly, they earn profit for their productive activity. Since these payments, rent, wages, interest and profits are received by the factors for their productive services, they are termed as factor incomes.

Karnataka Class 12 Commerce Economics Organisation Of Economic Activities Notes

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