Government budget deficit definition

Budget deficit – the excess of government spending over revenue; the main causes of government budget deficits include: Commitment to social welfare programmes Demographic trends Fundamental macro economic shifts eg slower growth in productivity, volatile inflation, increasing structural unemployment; together Read More …

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Determinants of demand for labour

Productivity/efficiency – skill and expertise Real wage rate (the proportion of TC accounted for by labour cost) Mobility and the marginal rate of technical substitution between labour and other factors of production particularly capital. Technology – depending on the resource Read More …

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Law of Diminishing Returns

The law of diminishing returns states that “As additional units of a variable factor are added to a given quantity of a fixed factor, with a given state of technology, the marginal product and the average product of the variable Read More …

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