asset. The underlying asset can be a stock‚ a stock index‚ a commodity or any other financial asset such as currencies‚ bonds and interest rates. The main function of the derivatives market is to provide financial investment instruments and provide for adequate coverage of risk management. Among the most popular underlying asset find the actions of the stock exchanges‚ currencies‚ stock indexes‚ the values of fixed income to commodities‚ and interest rates. Main features of financial derivatives
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land‚ wages and profits of labour without demonstrating their existence or connections. A laborer works for a wage that allows companies to produce a product that is then sold for a profit. Hence the laborer is a part of the process and becomes a commodity himself. The labour is objectified‚ and the worker is a slave to his labour. This brings about alienation for the laborer and his inner growth isn’t realized. He becomes separated from himself and exists only as a worker who is lacking in personal
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VALUE Vs PRICE There are four major attributes of a commodity i.e.‚ an item or service produced for‚ and sold on the market has four major attributes. They are: • a value • a use‐value (or utility) • an exchange value • a price (it could be an actual selling price or an imputed ideal price) VALUE In simple words‚ value refers to the importance of a thing or utility of a commodity. But in economics the term “value” has a quite different meaning. According to the famous economist
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meaning that he aims at utility maximization; given her income and commodity prices. There are several theories that have been developed to try and explain the behaviour of a consumer. However‚ they can be categorized into two distinct theories. (i) Cardinal utility theory which argues that a consumer has the capacity to measure the level of satisfaction that she derives from consumption of a given quantity of a commodity. (ii) Ordinal utility theory which argues that a consumer cannot measure
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Berrak Kibar 2011300291 EC 412.01 Final Paper "Polanyi argued that land‚ labor and money became fictitious commodities in the age of capitalism. Consider whether we can add knowledge to the above list." Polanyi introduced a variety of new terms into our lives; some of which are of extreme importance‚ such as fictitious commodities‚ embeddedness and double movement. He believed that economic activities were in fact embedded in social life and were affected by noneconomic activities and believed
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multiple ways. However‚ the views of Marxian take both the term commodity‚ labor‚ and value and combine it into his Labor Theory of Value. With these terms and actions between laborers created surplus also relates to capitalism‚ and the origin of surplus in general. Sweezy defines a commodity as “something produced for exchange rather than use for producer”(Sweezy‚ 23). In Marx’s view regarding the qualitative-value problem‚ “every commodity has a two-fold aspect‚ that of use value and exchange value”
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it is assumed that the income and tastes of consumers and the prices of other commodities are constant. This law operates when the commodity’s price changes and all other prices and conditions do not change. The main assumptions are Habits‚ tastes and fashions remain constant Money‚ income of the consumer does not change. Prices of other goods remain constant The commodity in question has no substitute The commodity is a normal good and has no prestige or status value. People do not expect changes
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BACHELOR OF COMMERCE (B.COM.‚) PAPER – 2.1 MANAGERIAL ECONOMICS UNIT – I CHAPTER - I SECTION - I Definition of Managerial Economics Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm’s decision-making process. According to MeNair and Meriam‚ managerial economies consists of the use of economic models of thought to analyze business situations. Some writers consider managerial economics as the integration
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Inflation in India There is hardly a thing or commodity whose price has not gone up in the recent times. Rise in prices has become a common feature in India and the people are reconciled to this fact. Rise in prices is called inflation. There are various factors that contribute to this rise in prices. Some are natural factors like unfavorable weather conditions which affect the food production and lead to the shortage of commodities in the market. With more money chasing fewer goods‚ the prices
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Price Control | January 21 2011 | Price control if not properly managed could be disastrous to the economy. It maynot only lead to higher prices in the long-run‚ but can even disrupt an industry. If pricesare not allowed to vary in response to greater risk‚ cost of production‚ and increasing costof staying in business‚ not enough producers would be encouraged to supply the product. | A Term Paper | B I B L I O G R A P H Y Philippine Institute for Development Studies‚ Economic Issue of
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