CLASSICAL THEORY OF EMPLOYMENT

Classical Theory of employment is related to classical economists such as David Ricardo, J.S. Mill, A.C. Pigou. This theory is based on the assumption of full employment of factors of production without inflation. According to this law, there are automatic forces that tend to maintain full employment and produce output at that level. This theory […]

Profit

There are four factors of production. They are Land, labor, Capital and organization, which is also called entrepreneur. According to the pricing theory of factors of production or theory of distribution, all the factors of production are paid according to their contribution on the total national product or equal to their marginal productivity. In this […]