Economics

This model is critici zed on theoretical and practical grounds on the basis of following points:  1. Unrealistic Assumption:                            ~  Constant wage rate in industrial sector                            ~   Unlimited Labour supply   2. Limited Supply of Skilled Labour:   3. One Sided Theory: ~ does not consider the possibility of progress in agricultural sector, thus, it is one sided theory. 4. Lack of Entrepreneurs. 5. Neglects of Aggregate Demand. 6. Unequal distribution of Income. 7. Migration is not Easy Task. 8. Savings are not done by Capitalist Sector Alone. 9. Marginal productivity of Labour is not Zero. 10. Mobility of Labour not Easy. 11. Multiplier process does not operate in LDC. 12. Adoption of Capital Intensive Techniques. 13. Leakage in Growth Process. 14. Inflation is not Self Destructive. 15. Productivity falls with Migration of Labour. 16. Inefficient Tax Administration. This are the basic problem with Lewis's theory of de

Introduction Planning   is the process of thinking about and organizing the activities required to achieve a desired goal (also called   forethought). It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills. There are even a couple of tests to measure someone’s capability of planning well. As such, planning is a fundamental property of intelligent behavior. Types of Planning:   There are various types of planning which are discussed below. 1.     Planning by Direction and Planning by Inducement: Ø Planning by Direction           Planning by direction is an integral part of a socialist society like that of the Soviet Union. It entails complete absence of laissez-faire. There is one central authority which plans, directs, and orders the execution of the plan in accordance with pre-determined targets and priorities. Such planning is comprehensive and encompasses the entire economy. As Lange has state

key words: Classical school of economics, assignment of Classical school of economic, Recurdian model, Adam smith's thought, Research paper on Classical school of economic             Abstract     This paper contains  the main idea of the Classical school though of economics.It is that markets work best in which  there is nothing but the smallest role for government. The approach is firmly one of laissez-faire and a strong belief in the efficiency of free markets to generate economics development  Markets should be left to work because the price mechanism  acts as a powerful 'invisible hand' to allocate resources to where they are best employed.                            Introduction   Classical theory was the first modern school of economic thought. It began in 1776 and ended around 1870 with the beginning of neoclassical economics. Notable classical economists include Adam Smith, Jean-Baptiste Say, David Ricardo, T