Okoth Douglas

 An externality is a cost or benefit of an economic activity experienced by an unrelated third party. Externalities are costs or benefits of market transactions that are not reflected in the market price and that affect individuals who are not…

A business plan is a document that is prepared by an entrepreneur for the purpose of defining and explaining the business activity, its requirements in terms of money, labor and equipment as well as the goals the business intends to…

Pure perfect competition is a market structure characterized by a large number of buyers and sellers of a homogenous products Each buyer and seller have no influence over the market price and output Information is available freely to all market…

The Theory In explaining Adam Smith’s theory of economic development, the concepts of Laissez-faire, division of labour, and capital accumulation are important. Laissez –faire Adam Smith’s theory is based on the principle of laissez-faire, where the economy is free from…

By per capita income we mean: the value of goods and services received by the average man When using per capita income to compare standard of living over time  we may experience the following problems : The composition of output…

Some economists ( Harvey Leibenstein, Rostow, Baran, Buchanan) and many others favour the use of per capita output as an index of economic development. They believe that economic growth is meaningless if it does not improve the standard of living…

Classical school of thought rose after the mercantilist doctrine and were famous for attacking and successfully refuting it. Classical economics is really the start of economics as we know it.  They did not have a macroeconomic theory as such, but…

Economic Growth: The term economic growth refers to the quantitative aspect of economic progress of a country. According to Paul Baron, “Economic growth may be defined as an increase over time in per capita output of material goods.” In other…