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Concept of Liquidity Trap

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5 Factors that Affect the Economic Growth of a Country

The term economic growth is associated with economic progress and advancement. Economic growth can be defined as an increase in the capacity of an economy to produce goods and services within a specific period of time.

In economics, economic growth refers to a long-term expansion in the productive potential of the economy to satisfy the wants of individuals in the society. Sustained economic growth of a country’ has a positive impact on the national income and level of employment, which further results in higher living standards. Apart from this, it plays a vital role in stimulating government finances by enhancing tax revenues. This enables the government to earn extra income for the further development of an economy. The economic growth of a country can be measured by comparing the level of Gross National Product (GNP) of a year with the GNP of the previous year. The economic growth of a country is possible if strengths and weaknesses of the economy are properly analyzed. Economic …

9 Most Important Properties of Indifference Curves

(1) A higher indifference curves to the right of another represents a higher level of satisfaction and preferable combination of the two goods. In Figure 6, consider the indifference curves I1 and I2 and combination N and A respectively on them. Since A is on a higher indifference curve and to the right of N, the consumer will be having more of both the goods X and Y that is, OX1 + OY1 in relation to OX + OY. Even if the two points on these curves are on the same plane as M and A, the consumer will prefer the latter combination, because he will be having more of good X though the quantity of good Y is the same. (2) In between two indifference curves there can be a number of other indifference curves, one for every point in the space on the diagram. (3) The numbers I1, I2, I3, I4,………… etc. given to indifference curves are absolutely arbitrary. Any numbers can be given to indifference curves. The numbers can be in the ascending order of 1, 2, 4, 6 or 2, 3, 1, 4 etc. Numbers have no imp…


Labour: Meaning and Characteristics | Economics

Labour includes both physical and mental work undertaken for some monetary reward. In this way, workers working in factories, services of doctors, advocates, ministers, officers and teachers are all included in labour. Any physical or mental work which is not undertaken for getting income, but simply to attain pleasure or happiness, is not labour. For example, the work of a gardener in the garden is called labour, because he gets income for it. But if the same work is done by him in his home garden, it will not be called labour, as he is not paid for that work. So, if a mother brings up her children, a teacher teaches his son and a doctor treats his wife, these activities are not considered ‘labour’ in economics. It is so because these are not done to earn income. According to S.E. Thomas, “Labour connotes all human efforts of body or mind which are undertaken in the expectation of reward.” Characteristics of Labour:
Labour has the following peculiarities which are explained as under:

Labour Policy, 1972, Pakistan

The fourth labour policy was announced in 1972 by the then ruling Pakistan People’s Party (PPP) government. The PPP was elected on a socialist agenda with a definite “pro-labour” manifesto. The Labour Policy of 1972 had three important dimensions: a) immediate increase in workers’ real wages; b) increased production; and c) promotion of trade unionism and amelioration of the workers’ lot. It included 22 specific points: 1. Workers’ participation in the management of industry; 2. Appointment of auditors by the collective bargaining agent. The auditors were to be paid by employers to audit their company accounts in certain cases; 3. Increase in workers’ share in profits from 2.5 per cent to 4 per cent (and later to 5 per cent) under the Companies’ Profits (Workers’ Participation) Act, 1968; 4. Nomination or election of ‘shop stewards’ in each factory department to take care of workers’ day to day problems; 5. Labour court decisions in 20 days for individual cases; 6. Settlement of disp…


1. Short title, extent, application and commencement.2. Definitions.3. Trade unions and freedom of association.4. Adherence to the law of the land.5. Application for registration.6. Requirements for application.7. Requirements for registration.7A. Disqualifications for being an officer of a trade union.7B. Registered trade union to maintain register, etc.8. Registration.8-A. Transfer, etc. of officer of the trade union during pendency ofapplication for registration.9. Certificate of registration.10. Cancellation of registration.11. Appeal against cancellation.12. Registrar of Trade Unions.13. Powers and functions of Registrar.14. Incorporation of registered Trade Union.15. Unfair labour practices on the part of employers.16. Unfair labour practices on the part of workmen.Rights and Privileges of registered trade unions and Collective Bargaining Agents
17. Law of conspiracy limited in application.18. Immunity from civil suit in certain cases.19. Enforce ability of agreement.2…