Kranti Pathak: Your Tutoring Companion

Answer

The above statement is derived from the central problems of an economy. It also indicates the technique of production ( Labour intensive & Capital intensive). Resources are scarce in comparison to demand of the resources. Here demand indicates consumer goods &  capital goods. It is becoming difficult for the economy to decide for whom the goods are to be produced. If resources are used for production of consumer goods the producers remain unsatisfied and vice versa. Resources have alternative uses, that is resources can satify many wants but can be used only once. So allocation of resources is required in such a manner that both cunsumer and producers demand can be fullflled.

It is mostly known to every economy that increase in resources is the solution for controlling the problem, but is not easy. So, efficiency of resources should be focused to resolve the problem of the economy.

Answer

Adam Smith as Scottish economist, philosopher, and author, and is considered the father of modern economics.

Answer

Adam Smith as Scottish economist, philosopher, and author, and is considered the father of modern economics.

Answer

In simple terms.......

The working capital formula is:

Working Capital = Current Assets – Current Liabilities

The working capital formula tells us the short-term liquid assets available after short-term liabilities have been paid off. One should remember that loose tools & spares are not included in Current Assets while calculating working capital. 

Working capital can also be calculated through short term solvency ratios.