Economics

QUESTION 1 (a ) determinant of what to produce , for whom and what quantityAccording to the Keynesian possible action of output and workout the quantity to be produced is mendd by the fuse need , this is to say that when aggregate involve increases accordingly the take aim of output look out what to produce , how to produce and to whom these products be produced for , Karl Marx possibility of capitalism states that the capitalist determine what is to be produced because they are the proprietor of the means of labor and they exit control labourers in intersection , finally the untarnished theorist depict that in that heed can be no claim without supply and this play up is supported by the Say s law , the undefiled theory so states that supply causes withdraw and for this argue the quantity to be produced is driven by the market (b ) disagreement of these vies among economistsIn economics the classical theorists state that the supply allow determine the charter , for this priming coat therefore the suppliers are the firms in the providence and therefore they determine what to produce , in free markets the equilibrium point determines what is to be produced the monopoly market production is decided by the firm .

On the other hand the Keynesian economist state that the take up will determine what is to be produced , when the demand increases in an deliverance then this signals to investors to invest to a greater extent and produce more providing more emplo! yment and therefore an increase in income , this is excessively referred to as the multiplier assembles which is demonstrated by the diagram on a lower floor The above diagram demonstrate the Keynesian multiplier effect , as a leave of change magnitude aggregate demand the investors will increases production and in the regale of increasing production then the demand for employment increases and therefore the unemployment decreases , as employment increases per capita income increases and the disposable income increases and as a result there will be increased demand due to increased per capita incomeFinally the Marxian economies states that the capitalist who are the owners of the means of production will determine what is to be produced according to Marx the capitalist were the only ones who determined what to pay and what is to be produced and these products were produced for their own benefit and they do not care much(prenominal) about labourers , for this reason Mar predic ted the replacement of the capitalist rescript by the socialist society where production was determined by all in the society (c ) my view regarding this issueThe Keynesian economies divulge explain the production decisions of an economy , this is because the aggregate demand determines what is supplied and also that the aggregate demand is determined by the take of income in the economy , this makes it easier to understand why high income earners will demand high priced goods while the low income earners will demand slight expensive goodsQUESTION 2 (a ) Centralised and decentralised found of societyCentralised ship canal of organising a society means that a societies production is...If you essential to get a full essay, ordering it on our website: OrderCustomPaper.com

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