Question: Who Gave The Concept Of Real Cost?

Who propounded the theory of real cost?

This theory is especially associated with Adam Smith and David Ricardo.

Since that time, it has been most often associated with Marxian economics, while among modern mainstream economists it is considered to be superseded by the marginal utility approach..

What is real cost?

The cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses.

What is the difference between money cost and real cost?

Money cost is the cost of acquiring a product or service in available cash. Real cost is the cost of the same expressed in other intangible factors, in addition to cash, such as time, labor, lost opportunity, etc. … Only by looking at both the Money Cost AND the Real Cost can one make an intelligent financial decision.

What is another name for opportunity cost in economics?

In microeconomic theory, opportunity cost, or alternative cost, is the loss of potential gain from other alternatives when one particular alternative is chosen over the others.

Who is called Father of Indian economics?

ListFieldPersonEpithetPoliticsB. R. AmbedkarFather of the Republic of India / Father of Modern IndiaPoliticsRaja Ram Mohan RoyFather of modern IndiaPoliticsPotti SreeramuluFather of Linguistic DemocracyEconomicsM.G.Ranade (Mahadev Govind Ranade)Father of Modern Economics23 more rows

Who is known as the father of India?

Mahatma GandhijiMahatma Gandhiji is revered in India as the Father of the Nation. Much before the Constitution of Free India conferred the title of the Father of the Nation upon the Mahatma, it was Netaji Subhash Chandra Bose who first addressed him as such in his condolence message to the Mahatma on the demise of Kasturba.

Who invented economics?

In 1751, Neapolitan philosopher Ferdinando Galiani published a nearly exhaustive treatise on money called Della Moneta (On Money), 25 years before Adam Smith’s The Wealth of Nations, and therefore is seen as possibly the first truly modern economic analysis.

Why is opportunity cost important?

Opportunity Cost helps a manufacturer to determine whether to produce or not. He can assess the economic benefit of going for a production activity by comparing it with the option of not producing at all. He may invest the same amount of money, time, and resources in another business or Opportunity.

What is the cost of money called?

Money Costs: Money cost is also known as the nominal cost.

What is the cost of money in economics?

Cost Of Money: The cost of money is the opportunity cost of holding money in hands instead of investing it. Furthermore, the time value of money is related to the concept of opportunity cost. The cost of any decision includes the cost of the most forgone alternative.

Why is opportunity cost called real cost?

Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost. Now, the option which is eventually chosen is obviously the choice, while the other one foregone in order the make this choice is regarded as the real cost.

Who is the father of economics?

SamuelsonCalled the father of modern economics, Samuelson became the first American to win the Nobel Prize in Economics (1970) for his work to transform the fundamental nature of the discipline.

Is opportunity cost a real cost?

The real cost is the price paid by the consumer for consuming a good. Opportunity cost is the foregone cost of the next best alternative present in…

What is a real life example of opportunity cost?

A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).