Economic concepts as integral in policy development process

Introduction

Economic concepts are the integral part of policy development process .It is therefore very important for not only economists but also everyone to get acquainted with economic term so as to grasp economic ideas. These economic ideas are mostly attributed to some of the founders of economic concepts and theories  such as Adam smith, Keynes, Feldman, Marx, Chenery, Ricardo, Kruger, Gerschenkron, Sir Arthur Lewis just to name a few. This paper takes a critical analysis and definition of some of economic terms and their implication in the economy.

Primitive accumulation

According to one main traditional interpretation, Marx’s concept of primitive accumulation indicates the historical process that gave birth to the preconditions of a capitalist mode of production. These preconditions refer mainly to the creation of a section of the population with no other means of livelihood but their labour power to be sold in a nascent labour market and to the accumulation of capital that may be used for nascent industries. In this conception, the adjective "primitive" corresponds to a clear-cut temporal dimension (the past), which becomes the condition for a capitalist future. Alternatively, the same concept of primitive accumulation has been interpreted as a continuous phenomenon within the capitalist mode of production, especially in connection to Marxist analyses describing the subordination of the South to the North of the world economy. 

Dual Economy

An economy based upon two separate/distinct economic systems which co-exist in the same geographical space. Dualism is characteristic of many developing countries in which some parts of a country resemble advanced economies while other parts resemble traditional economies

Economists have deliberated over whether an economy should achieve economic growth through its technically advanced sectors or whether resources should be spread evenly across the whole economy to achieve a more balanced growth.
 
Pin Factory
This is Adam Smith concept of division of labour.It opens with a most dramatic recommendation of the adoption of practices which saw work being performed as a number of tasks that were each alloted, as specialisations, to individual workers. Smith suggested that a pin factory that had adopted such a "division of labour" might produce tens of thousands of pins a day whereas a pin factory in which each worker attempted to produce pins, from start to finish, by performing all the tasks associated with pin production would produce very few pins

Recurrent Budget
The Recurrent Budget captures ongoing revenues and expenditures necessary to keep the economy going. Examples of Recurrent Revenues for example are derived from customs duties, stamp taxes, property taxes, business license fees, car license fees, hotel taxes and departure taxes

Implicit and Explicit Taxes
Implicit tax is that levy Lower (or higher) before-tax required returns on assets, which are subject to lower (or higher tax) rates

(Exchange Rates and Policy Regarding Exchange Rates)

Tariff

Juan Peron

Market Prices
These are prices that are determined by forces of demand and supply in a free market economy

Free Trade
This is trade where firms are free to entre and exit the market without any restriction.the market is controlled by demand and supply.It promotes completion which is good for the consumer in terms of quality and pricing of good and services.

Equal Librium
This is where the demand intersects with supply in a semand supply curve.It is usefull in pricing of commodities in the market.

Infant Industry
These are business enterprises wic h are still small in terms of capital size, technological advances and cannot compete well in a global free trade.theese industries are mostly fond in developing countries.

Inflation


Factor Prices

Opportunity Costs
This is the best alternative forgone

Comparative Advantage

Trade Theory

Growth Theory

Mandatory Sectoral Allocation

Central Planning

Central Bank

Orthodox Economics

Keynsian Economics

School of economic thought founded by the UK economist John Maynard Keynes (1883-1946) and developed by his followers. In 1936, at the height of the great depression, Keynes' landmark book 'General Theory Of Employment, Iinterest, And Money' caused a paradigm shift for the economists: it suddenly replaced their emphasis on study of the economic behavior of individuals and firms (microeconomics) to the study of the behavior of the economy as a whole (macroeconomics). The main plank of his revolutionary theory is the assertion that the aggregate demand created by households, businesses and the government and not the dynamics of free markets is the most important driving force in an economy. This theory further asserts that free markets (despite the assertion of 18th century Scottish economist Adam Smith and other classical economists) has no self-balancing mechanisms that lead to full employment. Keynesian economists urge and justify a government's intervention in the economy through public policies that aim to achieve full employment and price stability. Their ideas have greatly influenced governments the world-over in accepting their responsibility to provide full or near-full employment through measures (such as deficit spending) that stimulate aggregate demand. See also classical economics, neo-classical Economics, new classical economics and supply side economics.

Development Economics

Soviet Economics

All Forms of Subject Elasticity

All Forms of Subject Pessimisms

ISI

Inflation

Implications of processes and theories

Policy Weakness

Capital Entry Threshold

Inputs

Labor

Small Holder Farmers

Export Farmers