Lato-kosero

Definition of Income Inequality The unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of the population. For example, a statistic may indicate that 70% of a country's income is controlled by 20% of that country's residents. It is often associated with the idea of income "fairness". It is generally considered "unfair" if the rich have a disproportionally larger portion of a country's income compared to their population. The causes of income inequality can vary significantly by region, gender, education, and social status. Economists are divided as to whether income equality is ultimately positive or negative and what are the implications of such disparity. The policy measures to reduce income inequality are: 1. Increase the minimum wage. Research shows that higher wages for the lowest-paid...

Concept of stock variable and flow variable  Those variable whose values are measures from particular point of time is known as stock variable such as weight of a car, water in a tank, etc. Similarly, in macroeconomics we have lots of stock variables such like supply of money, the deposits in the bank, the amount of wealth possess by a person, etc.  Those variable whose values are measured from particular period of time such as speed of a car during ten minutes, etc. is known as flow variable. In macro economics national income, consumption, saving, investment and rate of interest are all flow variables. Concept of endogenous and exogenous variable:  The variable whose values are determined with in the model are known as endogenous variable. Eg. In two sector economy Y= C + I. Y is endogenous variable.  Similarly, those variables whose values are given outside model are known as exogenous variable. The values of exogenous variable are ...

Planning is the process of setting objective, goals and future course of action. It is future-oriented. It helps in selecting and allocating resources for the future. It specifies ways and means of implementing actions. It determines the answer of questions like what, when, how will, where, why reasons.  Project planning is the roadmap for the only project because it prepares the guidelines for allocating resources and their proper utilization. Project planning includes/ involves in designing, budgeting, scheduling the resources. It is the weapon to accomplish the objectives of any project. Project planning is part of total project planning. Planning is a systematic way of doing things. Steps in the planning process: 1. Analyzing opportunities 2. Setting goals 3. Developing Premises 4. Determining and Evaluation of alternative 5. Selecting a course of action 6. Formulating action plans 7. Preparing budgets ...

Why management is important? Emerging challenges for management. Functions and Principles of Management  An organization relies upon group effort to achieve a predetermined goal. And whenever two or more people are required to work together, management is necessary. The importance of management are: Accomplish goals Make better decisions Earn more profit Encourage initiative Improve corporative image Motives employees Encourage innovation Facilitates growth and expansions Improve life of workers Improve relations Reduce wastage Optimum use of resources Emerging challenges for management Globalization Technology Social responsibility Change management Cultural diversity Empowerment Quality assurance and productivity Human resource management Organizational design Leasing organization Development of environmentalism Principle of Management Division of work Authority and responsibility Discipline Unity of command Unity of direction/...

Nepal has announced the year 2020 as its Tourism year. Last time, tourism year was announced in 2011 AD. That was a huge hit so the Nepalese government as that has called for a huge flow of tourists in the country. But the problem came when Nepal was hit by a huge earthquake back in 2015. Many heritage sites were affected by it. The whole country has been in despair since then and this has also affected the flow of tourists in this beautiful country. Nonetheless, the country has stood up yet again through this catastrophe, this time much stronger than before. Rebuilding their heritages and refueling their courage, this adventurous and beautiful country has announced its tourism year. Here are the pictures of the country about what you can expect from it, that will for sure leave you awe-stricken.

The exchange of goods and services between two or more than two countries are known as international trade. In technical sense of expression, the export and import of goods and services between countries can be described as international trade. Importance of international trade: The significance of international trade can be described as follows: i. Increase in GNP:  The international trade encourages the trading partners to produce more and more goods and services for export and import in each country. Such a situation helps to increase GNP of trading countries. ii. Increase in income employment generation activities: Due to international trade, the trading partners produce various exportable goods in the country. The production of exportable activities in the domestic economy. iii. Encouragement to division of labor:  The foreign trade motivates trading countries to specialize the production of those goods and serv...

"HR professionals need to approach their work from the outside/in and deliver value by understanding the business context for their organization" In the last few years, most of the business in Nepal ran by inside/out approach. But, Nepal is developing its business from outside/in approach too. In any organization/ business HR professional and the line, the manager needs to know about the inside/out and outside/in approach in order to run the organization smoothly and earn more benefits.  This article gives emphasis to the outside/in approach. Outside/in approach is to know your customers/investors and their value for the success of the organization. Below are the points which help the HR professionals to understand the business context more easily from outside/in approach.  1. Social Trends:  It includes lifestyle, health patterns, day to day activities, social problems and so on. If the HR professional knows about: How is the lifestyle ...

This theory was developed by Franca Modigliani, Nobel Laureate of 1985, Richard Brumberg and Albert Ando in 1950s and 1960s. It is called MBA hypothesis. According to this theory, consumption is a function of the lifetime expected income of the person. The consumption depends on the resources available to the person, the rate of return to the capital, the spending plan and the age at which the plan is made. It depends on:  i. Resources  ii. Spending plan  iii. Rate of return on capital  iv. The age at which the plan is made  According to Modigliani the point of departure of the life cycle model is the hypothesis that consumption and saving decision of household at each point of time reflects more or less conscious attempt to achieve the preferred distribution of consumption over the life cycle. Subject to the constraint imposed by the resources occurring to the household over...

Fiscal policy is the policy of the government regarding the change in government expenditure and taxation. The main objective of the fiscal policy is full employment, economic growth, price stability, the balance of payment, etc. In the Keynesian system when government expenditure increases there will be the immediate effect of change in investment function i.e. when government expenditure increases investment increases the real output also increases through the multiplier process but the effect of fiscal policy in the economy depends on the conditions of employment in the economy. Therefore, for the explanation of effect of fiscal policy in the Keynesian system, we have to divide the economy with some unemployment and full employment.  i. Effect of fiscal policy in the Keynesian system with some unemployment:  When there is unemployment in the economy, a rise in government expenditure reduces the investment fun to shift upward to the right...