Tag: theories of employment and income

SEZ stands for Special Economic Zone. Government provides a lot of subsidies and facilities to the firms of these areas in order to uplift the standard of economic conditions of those people living in these areas.

Industry refers to a number of market grouped together. So when an industry expands, there is a lot of sectors that is benefitted. All the firms in the economy, gets external economies that is they get the benefit of large scale business and they tend to grow further.

Open economy means that the nation exports and import in goods and services very freely following the rules and regulations of world trade organisation with both fixed as well as flexible exchange rates.

A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

Capital surplus economy refers to an economy where the rate of investment is very high, i.e, quick capital accumulation takes place. Capital intensive techniques would, thus, be preferred as money can be converted into useful assets for production. 

Laissez-faire refers to a free market economy, where every individual has the right to take their own decisions with regards to economic activities. Under capitalism every individual approaches the central economic problems for maximizing their own personal gains.

Education and Inspections Act 2006 – this Act extended the law on schools' power to discipline and makes parents responsible for ensuring their excluded child is not in a public place during the first five days of any exclusion.

John Maynard Keynes was a British economist who presented his ideas on income and employment determination in 1936, in his book, 'The General Theory of Employment'. This came to be known as the Keynesian theory of income and employment, which has impacted many principles and practices of macroeconomics and the way economic policies are formed.