1.
Wealthy (apple)
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The Wealthy was the earliest apple cultivar to thrive in the Minnesota climate. Horticulturalist Peter Gideon grew it first in 1868, after years of trial, before 1868, only crab apples grew reliably in Minnesota. American Indians in the area harvested other crops, but they did not grow apples, in 1853, Peter Gideon moved to Minnesota for health reasons and took a homestead with his family on the shores of Lake Minnetonka, near Excelsior. He had learned fruit-growing as a child, and when he arrived on his new land, by 1861, Gideon and his family had only one surviving apple tree, a Siberian crab apple, and they were down to their last eight dollars. Determined to find an apple that would grow in Minnesota, Gideon sent the familys last dollars to a grower in Bangor, Maine. Just one of the trees, crossed with Gideons Siberian crab apple, produced the apple that Gideon later named the Wealthy, after his wife. He was a member of the Minnesota State Horticultural Society, and he shared his knowledge and his trees freely, soon, Wealthy apples were growing in many locations in Minnesota, as well as in other states, especially states in the Upper Midwest with similar climates. The Wealthy apple also was the parent of other successful Minnesota apples, such as the Haralson, tartu Rose Applecrab Alderman, W. H. Development of Horticulture on the Northern Great Plains, sponsored by the Great Plains Region American Society for Horticultural Science,1962. Duin, Edgar C. Peter M. Gideon, Pioneer Horticulturist, a History of Horticulture in America to 1860. New York, Oxford University Press,1950, Peter Gideon, Pioneer, Kept on Raising Apples, Minnetonka Record, September 20,1935. This article incorporates text from MNopedia, which is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License
2.
Gold
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Gold is a chemical element with symbol Au and atomic number 79. In its purest form, it is a bright, slightly yellow, dense, soft, malleable. Chemically, gold is a metal and a group 11 element. It is one of the least reactive chemical elements and is solid under standard conditions, Gold often occurs in free elemental form, as nuggets or grains, in rocks, in veins, and in alluvial deposits. It occurs in a solid solution series with the element silver and also naturally alloyed with copper. Less commonly, it occurs in minerals as gold compounds, often with tellurium, golds atomic number of 79 makes it one of the higher numbered, naturally occurring elements. It is thought to have produced in supernova nucleosynthesis, from the collision of neutron stars. Because the Earth was molten when it was formed, almost all of the present in the early Earth probably sank into the planetary core. Gold is resistant to most acids, though it does dissolve in aqua regia, a mixture of acid and hydrochloric acid. Gold also dissolves in solutions of cyanide, which are used in mining and electroplating. Gold dissolves in mercury, forming amalgam alloys, but this is not a chemical reaction, as a precious metal, gold has been used for coinage, jewelry, and other arts throughout recorded history. A total of 186,700 tonnes of gold is in existence above ground, the world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry. Gold is also used in infrared shielding, colored-glass production, gold leafing, certain gold salts are still used as anti-inflammatories in medicine. As of 2014, the worlds largest gold producer by far was China with 450 tonnes, Gold is cognate with similar words in many Germanic languages, deriving via Proto-Germanic *gulþą from Proto-Indo-European *ǵʰelh₃-. The symbol Au is from the Latin, aurum, the Latin word for gold, the Proto-Indo-European ancestor of aurum was *h₂é-h₂us-o-, meaning glow. This word is derived from the root as *h₂éu̯sōs, the ancestor of the Latin word Aurora. This etymological relationship is presumably behind the frequent claim in scientific publications that aurum meant shining dawn, Gold is the most malleable of all metals, a single gram can be beaten into a sheet of 1 square meter, and an avoirdupois ounce into 300 square feet. Gold leaf can be thin enough to become semi-transparent
3.
Value (economics)
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Economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured relative to units of currency, and the interpretation is therefore what is the amount of money a specific actor is willing. Note that economic value is not the same as market price, if a consumer is willing to buy a good, it implies that the customer places a higher value on the good than the market price. The difference between the value to the consumer and the price is called consumer surplus. It is easy to see situations where the value is considerably larger than the market price. The economic value of a good or service has puzzled economists since the beginning of the discipline, first, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods which can be exchanged. From this analysis came the concepts value in use and value in exchange, Value is linked to price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed, those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a amount of a good. Additional information about market value is obtained by the rate at which transactions occur, said another way, value is how much a desired object or condition is worth relative to other objects or conditions. Economic values are expressed as how much of one condition or commodity will. Among the competing schools of economic theory there are differing metrics for value assessment, Value theories are a large part of the differences and disagreements between the various schools of economic theory. In neoclassical economics, the value of an object or service is seen as nothing but the price it would bring in an open. This is determined primarily by the demand for the relative to supply in a perfectly competitive market. Many neoclassical economic theories equate the value of a commodity with its price, as such, everything is seen as a commodity and if there is no market to set a price then there is no economic value. In classical economics, the value of an object or condition is the amount of discomfort/labor saved through the consumption or use of an object or condition. Though exchange value is recognized, economic value is not, in theory, dependent on the existence of a market and price and this is complicated, however, by the efforts of classical economists to connect price and labor value. In this tradition, Steve Keen makes the claim that value refers to the worth of a commodity
4.
Resource
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A resource is a source or supply from which benefit is produced. Resources are two types based upon their availability they are renewable and non renewable resources, typically resources are materials, energy, services, staff, knowledge, or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable. Benefits of resource utilization may include increased wealth or wants, proper functioning of a system, from a human perspective a natural resource is anything obtained from the environment to satisfy human needs and wants. From a broader biological or ecological perspective a resource satisfies the needs of a living organism, in application within human society, commercial or non-commercial factors require resource allocation through resource management. Resources have three characteristics, utility, limited availability, and potential for depletion or consumption. Resources have been categorized as biotic versus abiotic, renewable versus non-renewable. In economics a resource is defined as a service or other used to produce goods and services that meet human needs. Economics itself has been defined as the study of how society manages its scarce resources, classical economics recognizes three categories of resources, also referred to as factors of production, land, labour, and capital. Land includes all natural resources and is viewed as both the site of production and the source of raw materials, labour or human resources consists of human effort provided in the creation of products, paid in wage. Capital consists of human-made goods or means of production used in the production of goods and services. In biology and ecology a resource is defined as a substance that is required by an organism for normal growth, maintenance. The main essential resources for animals are food, water, for plants key resources include light, nutrients, water, and a place to grow. Resources, can be consumed by an organism and, as a result, competition for resources vary from complete symmetric to perfectly size symmetric to absolutely size-asymmetric. A computer resource is any physically or virtual component of limited availability within a computer or information management system, computer resources include means for input, processing, output, communication, and storage. Natural resources are derived from the environment, many natural resources are essential for human survival, while others are used for satisfying human desire. Conservation is the management of resources with the goal of sustainability. Natural resources may be classified in different ways. Resources can be categorized on the basis of origin, Abiotic resources comprise non-living things, biotic resources are obtained from the biosphere
5.
Property
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In the abstract, property is that which belongs to or with something, whether as an attribute or as a component of said thing. In economics and political economy, there are three forms of property, private property, public property, and collective property. Property that jointly belongs to more than one party may be possessed or controlled thereby in very similar or very distinct ways, whether simply or complexly, whether equally or unequally. However, there is an expectation that each partys will with regard to the property be clearly defined and unconditional, so as to distinguish ownership and this mediating relationship between individual, property and state is called a property regime. The distinction between property and private property is regarded as a confusion since different individuals often hold differing rights over a single object. An article of property may have physical and incorporeal parts, a title, or a right of ownership, establishes the relation between the property and other persons, assuring the owner the right to dispose of the property as the owner sees fit. Often property is defined by the code of the sovereignty, and protected wholly or more usually partially by such entity. The standards of proof concerning proofs of ownerships are also addressed by the code of the local sovereignty, some philosophers assert that property rights arise from social convention, while others find justifications for them in morality or in natural law. Property, in the first instance, is a thing-in-itself, when a person finds a thing and takes that thing into that persons possession and control, then that thing becomes a thing-for-you for that person. Generally, the ground and any buildings which are attached are considered real property, while movable goods. Also, property cannot be considered a concept, because in the first instance. Various scholarly disciplines may treat the concept more systematically, but definitions vary, positive law defines such rights, and the judiciary can adjudicate and enforce property rights. According to Adam Smith, the expectation of profit from improving ones stock of capital rests on private property rights, Capitalism has as a central assumption that property rights encourage their holders to develop the property, generate wealth, and efficiently allocate resources based on the operation of markets. From this has evolved the modern conception of property as a right enforced by law, in the expectation that this will produce more wealth. In his text The Common Law, Oliver Wendell Holmes describes property as having two fundamental aspects, the first, possession, can be defined as control over a resource based on the practical inability of another to contradict the ends of the possessor. The second, title, is the expectation that others will recognize rights to control resource and he elaborates the differences between these two concepts, and proposes a history of how they came to be attached to persons, as opposed to families or to entities such as the church. Classical liberalism subscribes to the theory of property. They hold that each own their own life, it follows that one must own the products of that life
6.
Indo-European languages
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The Indo-European languages are a language family of several hundred related languages and dialects. There are about 445 living Indo-European languages, according to the estimate by Ethnologue, the most widely spoken Indo-European languages by native speakers are Spanish, English, Hindustani, Portuguese, Bengali, Russian, and Punjabi, each with over 100 million speakers. Today, 46% of the population speaks an Indo-European language as a first language. The Indo-European family includes most of the languages of Europe, and parts of Western, Central. It was also predominant in ancient Anatolia, the ancient Tarim Basin and most of Central Asia until the medieval Turkic migrations, all Indo-European languages are descendants of a single prehistoric language, reconstructed as Proto-Indo-European, spoken sometime in the Neolithic era. Several disputed proposals link Indo-European to other language families. In the 16th century, European visitors to the Indian subcontinent began to notice similarities among Indo-Aryan, Iranian, in 1583, English Jesuit missionary Thomas Stephens in Goa wrote a letter to his brother in which he noted similarities between Indian languages and Greek and Latin. Another account to mention the ancient language Sanskrit came from Filippo Sassetti, a merchant born in Florence in 1540, writing in 1585, he noted some word similarities between Sanskrit and Italian. However, neither Stephens nor Sassettis observations led to further scholarly inquiry and he included in his hypothesis Dutch, Albanian, Greek, Latin, Persian, and German, later adding Slavic, Celtic, and Baltic languages. However, Van Boxhorns suggestions did not become known and did not stimulate further research. Ottoman Turkish traveler Evliya Çelebi visited Vienna in 1665–1666 as part of a diplomatic mission, gaston Coeurdoux and others made observations of the same type. Coeurdoux made a comparison of Sanskrit, Latin and Greek conjugations in the late 1760s to suggest a relationship among them. Thomas Young first used the term Indo-European in 1813, deriving from the extremes of the language family. A synonym is Indo-Germanic, specifying the familys southeasternmost and northwesternmost branches, a number of other synonymous terms have also been used. Franz Bopps Comparative Grammar appeared between 1833 and 1852 and marks the beginning of Indo-European studies as an academic discipline, the classical phase of Indo-European comparative linguistics leads from this work to August Schleichers 1861 Compendium and up to Karl Brugmanns Grundriss, published in the 1880s. Brugmanns neogrammarian reevaluation of the field and Ferdinand de Saussures development of the theory may be considered the beginning of modern Indo-European studies. This led to the laryngeal theory, a major step forward in Indo-European linguistics. Isolated terms in Luwian/Hittite mentioned in Semitic Old Assyrian texts from the 20th and 19th centuries BC, Hittite texts from about 1650 BC, Armenian, writing known from the beginning of the 5th century AD
7.
Economics
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Economics is a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services according to the Merriam-Webster Dictionary. Economics focuses on the behaviour and interactions of economic agents and how economies work, consistent with this focus, textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behaviour of elements in the economy, including individual agents and markets, their interactions. Individual agents may include, for example, households, firms, buyers, macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, inflation, economic growth, and the public policies that address these issues. Economic analysis can be applied throughout society, as in business, finance, health care, Economic analyses may also be applied to such diverse subjects as crime, education, the family, law, politics, religion, social institutions, war, science, and the environment. At the turn of the 21st century, the domain of economics in the social sciences has been described as economic imperialism. The ultimate goal of economics is to improve the conditions of people in their everyday life. There are a variety of definitions of economics. Some of the differences may reflect evolving views of the subject or different views among economists, to supply the state or commonwealth with a revenue for the publick services. Say, distinguishing the subject from its uses, defines it as the science of production, distribution. On the satirical side, Thomas Carlyle coined the dismal science as an epithet for classical economics, in this context and it enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. He affirmed that previous economists have usually centred their studies on the analysis of wealth, how wealth is created, distributed, and consumed, but he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it, generates both cost and benefits, and, resources are used to attain the goal. If the war is not winnable or if the costs outweigh the benefits. Some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets, there are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. The same source reviews a range of included in principles of economics textbooks. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which the author believes economics is evolving, microeconomics examines how entities, forming a market structure, interact within a market to create a market system
8.
Economic growth
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Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in gross domestic product, or real GDP. Growth is usually calculated in real terms – i. e. inflation-adjusted terms – to eliminate the effect of inflation on the price of goods produced. Measurement of economic growth uses national income accounting, since economic growth is measured as the annual percent change of gross domestic product, it has all the advantages and drawbacks of that measure. The rate of economic growth refers to the annual rate of growth in GDP between the first and the last year over a period of time. Implicitly, this rate is the trend in the average level of GDP over the period. An increase in economic growth caused by efficient use of inputs is referred to as intensive growth. GDP growth caused only by increases in the amount of available for use is called extensive growth. The economic growth rate is calculated from data on GDP estimated by countries´statistical agencies, the rate of growth of GDP/capita is calculated from data on GDP and people for the initial and final periods included in the analysis. The rate of change of GDP/population is the sum of the rates of change of four variables plus their cross products. Increases in labor productivity have historically been the most important source of real per capita economic growth, increases in productivity lower the real cost of goods. Over the 20th century the price of many goods fell by over 90%. Economic growth has traditionally been attributed to the accumulation of human and physical capital, the rapid economic growth that occurred during the Industrial Revolution was remarkable because it was in excess of population growth, providing an escape from the Malthusian trap. Countries that industrialized eventually saw their population growth slow down, a known as the demographic transition. Increases in productivity are the factor responsible for per capita economic growth – this has been especially evident since the mid-19th century. Most of the growth in the 20th century was due to increased output per unit of labor, materials, energy. The balance of the growth in output has come from using more inputs, both of these changes increase output. The increased output included more of the goods produced previously and new goods
9.
Development economics
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Development economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Development economics involves the creation of theories and methods that aid in the determination of policies and practices, unlike in many other fields of economics, approaches in development economics may incorporate social and political factors to devise particular plans. Also unlike many other fields of economics, there is no consensus on what students should know, different approaches may consider the factors that contribute to economic convergence or non-convergence across households, regions, and countries. The earliest Western theory of development economics was mercantilism, which developed in the 17th century, earlier theories had given little attention to development. For example, Scholasticism the dominant school of thought during medieval feudalism, emphasized reconciliation with Christian theology and ethics, the 16th- and 17th-century School of Salamanca, credited as the earliest modern school of economics, likewise did not address development specifically. Mercantilism held that a nations prosperity depended on its supply of capital and it emphasised the maintenance of a high positive trade balance as a means of accumulating this bullion. To achieve a trade balance, protectionist measures such as tariffs. Mercantilist development theory also advocated colonialism, in France, mercantilist policy is most associated with 17th-century finance minister Jean-Baptiste Colbert, whose policies proved influential in later American development. Mercantilist ideas continue in the theories of nationalism and neomercantilism. A significant difference from mercantilism was the de-emphasis on colonies, in favor of a focus on domestic production, the names most associated with 19th-century economic nationalism are the American Alexander Hamilton, the German-American Friedrich List, and the American Henry Clay. Hamiltons 1791 Report on Manufactures, his opus, is the founding text of the American System. The key authors are Paul Rosenstein-Rodan, Kurt Mandelbaum, Ragnar Nurkse, only after the war did economists turn their concerns towards Asia, Africa and Latin America. At the heart of these studies, by such as Simon Kuznets and W. Arthur Lewis was an analysis of not only economic growth. The linear-stages-of-growth model posits that there are a series of five stages of development which all countries must go through during the process of development. Such theories have been criticized for not recognizing that, while necessary and that is to say that this early and simplistic theory failed to account for political, social and institutional obstacles to development. Furthermore, this theory was developed in the years of the Cold War and was largely derived from the successes of the Marshall Plan. This has led to the criticism that the theory assumes that the conditions found in developing countries are the same as those found in post-WWII Europe. There are two forms of structural-change theory, W
10.
Ethics
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Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. The term ethics derives from the Ancient Greek word ἠθικός ethikos, the branch of philosophy axiology comprises the sub-branches of ethics and aesthetics, each concerned with values. As a branch of philosophy, ethics investigates the questions What is the best way for people to live, and What actions are right or wrong in particular circumstances. In practice, ethics seeks to resolve questions of morality by defining concepts such as good and evil, right and wrong, virtue and vice, justice. As a field of enquiry, moral philosophy also is related to the fields of moral psychology, descriptive ethics. Richard William Paul and Linda Elder define ethics as a set of concepts, the Cambridge Dictionary of Philosophy states that the word ethics is commonly used interchangeably with morality. And sometimes it is used narrowly to mean the moral principles of a particular tradition. Paul and Elder state that most people confuse ethics with behaving in accordance with social conventions, religious beliefs, the word ethics in English refers to several things. It can refer to philosophical ethics or moral philosophy—a project that attempts to use reason in order to various kinds of ethical questions. As bioethicist Larry Churchill has written, Ethics, understood as the capacity to think critically about moral values, Ethics can also be used to describe a particular persons own idiosyncratic principles or habits. For example, Joe has strange ethics, the English word ethics is derived from an Ancient Greek word êthikos, which means relating to ones character. The Ancient Greek adjective êthikos is itself derived from another Greek word, meta-ethics asks how we understand, know about, and what we mean when we talk about what is right and what is wrong. An ethical question fixed on some particular practical question—such as, Should I eat this particular piece of chocolate cake. —cannot be a meta-ethical question, a meta-ethical question is abstract and relates to a wide range of more specific practical questions. For example, Is it ever possible to have knowledge of what is right. Meta-ethics has always accompanied philosophical ethics, meta-ethics is also important in G. E. In it he first wrote about what he called the naturalistic fallacy, moore was seen to reject naturalism in ethics, in his Open Question Argument. This made thinkers look again at second order questions about ethics, earlier, the Scottish philosopher David Hume had put forward a similar view on the difference between facts and values. Studies of how we know in ethics divide into cognitivism and non-cognitivism, non-cognitivism is the claim that when we judge something as right or wrong, this is neither true nor false
11.
United Nations
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The United Nations is an intergovernmental organization to promote international co-operation. A replacement for the ineffective League of Nations, the organization was established on 24 October 1945 after World War II in order to prevent another such conflict, at its founding, the UN had 51 member states, there are now 193. The headquarters of the UN is in Manhattan, New York City, further main offices are situated in Geneva, Nairobi, and Vienna. The organization is financed by assessed and voluntary contributions from its member states, the UNs mission to preserve world peace was complicated in its early decades by the Cold War between the US and Soviet Union and their respective allies. The organization participated in actions in Korea and the Congo. After the end of the Cold War, the UN took on major military, the UN has six principal organs, the General Assembly, the Security Council, the Economic and Social Council, the Secretariat, the International Court of Justice, and the UN Trusteeship Council. UN System agencies include the World Bank Group, the World Health Organization, the World Food Programme, UNESCO, the UNs most prominent officer is the Secretary-General, an office held by Portuguese António Guterres since 2017. Non-governmental organizations may be granted consultative status with ECOSOC and other agencies to participate in the UNs work, the organization won the Nobel Peace Prize in 2001, and a number of its officers and agencies have also been awarded the prize. Other evaluations of the UNs effectiveness have been mixed, some commentators believe the organization to be an important force for peace and human development, while others have called the organization ineffective, corrupt, or biased. Following the catastrophic loss of life in the First World War, the earliest concrete plan for a new world organization began under the aegis of the US State Department in 1939. It incorporated Soviet suggestions, but left no role for France, four Policemen was coined to refer to four major Allied countries, United States, United Kingdom, Soviet Union, and China, which emerged in the Declaration by United Nations. Roosevelt first coined the term United Nations to describe the Allied countries, the term United Nations was first officially used when 26 governments signed this Declaration. One major change from the Atlantic Charter was the addition of a provision for religious freedom, by 1 March 1945,21 additional states had signed. Each Government pledges itself to cooperate with the Governments signatory hereto, the foregoing declaration may be adhered to by other nations which are, or which may be, rendering material assistance and contributions in the struggle for victory over Hitlerism. During the war, the United Nations became the term for the Allies. To join, countries had to sign the Declaration and declare war on the Axis, at the later meetings, Lord Halifax deputized for Mr. Eden, Wellington Koo for T. V. Soong, and Mr Gromyko for Mr. Molotov. The first meetings of the General Assembly, with 51 nations represented, the General Assembly selected New York City as the site for the headquarters of the UN, and the facility was completed in 1952. Its site—like UN headquarters buildings in Geneva, Vienna, and Nairobi—is designated as international territory, the Norwegian Foreign Minister, Trygve Lie, was elected as the first UN Secretary-General
12.
World energy resources
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World energy resources are the estimated maximum capacity for energy production given all available resources on Earth. They can be divided by type into fossil fuel, nuclear fuel, remaining reserves of fossil fuel are estimated as, These are the proven energy reserves, real reserves may be up to a factor 4 larger. Significant uncertainty exists for these numbers, estimating the remaining fossil fuels on the planet depends on a detailed understanding of the Earths crust. In addition to uncertainty in real reserves, there is significant uncertainty in technological and economical factors that impact what percentage of reserves can be recovered gainfully, in general the easiest to reach deposits are the first extracted. Coal is the most abundant and burned fossil fuel, with the Fischer- Tropsch process it is possible to make liquid fuels such as diesel and jet fuel from coal. In the United States, 49% of electricity comes from burning coal. Natural gas is a widely available fossil fuel with estimated 850000 km³ in recoverable reserves, improvements in technology and wide exploration led to a major increase in recoverable natural gas reserves as shale fracking methods were developed. At present usage rates, natural gas could supply most of the energy needs for between 100 and 250 years, depending on increase in consumption over time. Current consensus among the 18 recognized estimates of supply profiles is that the peak of extraction will occur in 2020 at the rate of 93-million barrels per day, current oil consumption is at the rate of 0.18 ZJ per year or 85-mbd. There is growing concern that oil production may be reached in the near future. A2005 French Economics, Industry and Finance Ministry report suggested a scenario that could occur as early as 2013. There are also theories that peak of the oil production may occur in as little as 2–3 years. The ASPO predicts peak year to be in 2010, some other theories present the view that it has already taken place in 2005. World crude oil production according to US EIA data decreased from a peak of 73.720 mbd in 2005 to 73.437 in 2006,72.981 in 2007, and 73.697 in 2008. In a stated goal of increasing oil prices to $75/barrel, which had fallen from a high of $147 to a low of $40, OPEC announced decreasing production by 2.2 mbd beginning 1 January 2009. Political considerations over the security of supplies, environmental concerns related to global warming, the concept of peak oil shows that about half of the available petroleum resources have been produced, and predicts a decrease of production. A government move away from fossil fuels would most likely create economic pressure through carbon emissions, some countries are taking action as a result of the Kyoto Protocol, and further steps in this direction are proposed. Some estimate, assuming current consumption rates, current oil reserves could be depleted by the year 2050
13.
Adam Smith
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Adam Smith FRSA was a Scottish economist, philosopher, and author. He was a philosopher, a pioneer of political economy. He is best known for two works, The Theory of Moral Sentiments, and An Inquiry into the Nature. The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith studied social philosophy at the University of Glasgow and at Balliol College, Oxford, after graduating, he delivered a successful series of public lectures at Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment. Smith obtained a professorship at Glasgow teaching moral philosophy, and during this time he wrote, in his later life, he took a tutoring position that allowed him to travel throughout Europe, where he met other intellectual leaders of his day. Smith laid the foundations of free market economic theory. The Wealth of Nations was a precursor to the academic discipline of economics. In this and other works, he developed the concept of division of labour, Smith was controversial in his own day and his general approach and writing style were often satirised by Tory writers in the moralising tradition of William Hogarth and Jonathan Swift. In 2005, The Wealth of Nations was named among the 100 Best Scottish Books of all time, the minor planet 12838 Adamsmith was named in his memory. Smith was born in Kirkcaldy, in the County of Fife and his father, also Adam Smith, was a Scottish Writer to the Signet, advocate, and prosecutor and also served as comptroller of the Customs in Kirkcaldy. In 1720 he married Margaret Douglas, daughter of the landed Robert Douglas of Strathendry and his father died two months after he was born, leaving his mother a widow. The date of Smiths baptism into the Church of Scotland at Kirkcaldy was 5 June 1723, and this has often been treated as if it were also his date of birth, Smith was close to his mother, who probably encouraged him to pursue his scholarly ambitions. He attended the Burgh School of Kirkcaldy—characterised by Rae as one of the best secondary schools of Scotland at that period—from 1729 to 1737, he learned Latin, mathematics, history, Smith entered the University of Glasgow when he was fourteen and studied moral philosophy under Francis Hutcheson. Here, Smith developed his passion for liberty, reason, in 1740 Smith was the graduate scholar presented to undertake postgraduate studies at Balliol College, Oxford, under the Snell Exhibition. Adam Smith considered the teaching at Glasgow to be far superior to that at Oxford, according to William Robert Scott, The Oxford of time gave little if any help towards what was to be his lifework. Nevertheless, Smith took the opportunity while at Oxford to teach several subjects by reading many books from the shelves of the large Bodleian Library. When Smith was not studying on his own, his time at Oxford was not a happy one, near the end of his time there, Smith began suffering from shaking fits, probably the symptoms of a nervous breakdown
14.
The Wealth of Nations
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First published in 1776, the book offers one of the worlds first collected descriptions of what builds nations wealth, and is today a fundamental work in classical economics. By reflecting upon the economics at the beginning of the Industrial Revolution, the touches upon such broad topics as the division of labour, productivity. An important theme that persists throughout the work is the idea that the system is automatic, and. This is often referred to as the “invisible hand, the Wealth of Nations was published 9 March 1776, during the Scottish Enlightenment and the Scottish Agricultural Revolution. It influenced a number of authors and economists, as well as governments, for example, Alexander Hamilton was influenced in part by The Wealth of Nations to write his Report on Manufactures, in which he argued against many of Smiths policies. Interestingly, Hamilton based much of this report on the ideas of Jean-Baptiste Colbert and it provided the foundation for new economists, politicians, mathematicians, biologists, and thinkers of all fields to build upon. Five editions of The Wealth of Nations were published during Smiths lifetime, in 1776,1778,1784,1786, numerous editions appeared after Smiths death in 1790. To better understand the evolution of the work under Smiths hand, the differences were published along with an edited sixth edition in 1904. They found minor but numerous differences between the first and the editions, both of which were published in two volumes. Among other things, the Additions and Corrections included entirely new sections, finally, Cannan notes only trivial differences between the fourth and fifth editions – a set of misprints being removed from the fourth and a different set of misprints being introduced. The first edition of the sold out in six months. Strahan also wrote, What you say of Mr. Gibbons, gibbon wrote to Adam Ferguson on 1 April, What an excellent work is that with which our common friend Mr. Adam Smith has enriched the public. An extensive science in a book, and the most profound ideas expressed in the most perspicuous language. The review of the book in the Annual Register was probably written by Whig MP Edmund Burke, Smiths biographer John Rae contends that The Wealth of Nations shaped government policy soon after it was published. In 1777 the Prime Minister, Lord North, in the first budget after the book was published, the budget of 1778 introduced the inhabited house duty and the malt tax, both recommended by Smith. In 1779 Smith was consulted by politicians Henry Dundas and Lord Carlisle on the subject of giving Ireland free trade, in that book it was stated that the only way to become rich was to manage matters so as to make ones income exceed ones expenses. This maxim applied equally to an individual and to a nation, the proper line of conduct therefore was by a well-directed economy to retrench every current expense, and to make as large a saving during the peace as possible. In 1796 when Fox was dining with Lord Lauderdale, Lauderdale remarked that they knew nothing of political economy before Adam Smith wrote, pooh, replied Fox, your Adam Smiths are nothing, but that is his love, we must spare him there
15.
Money
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The main functions of money are distinguished as, a medium of exchange, a unit of account, a store of value, and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered as money, Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without use value as a physical commodity. It derives its value by being declared by a government to be legal tender, the money supply of a country consists of currency and, depending on the particular definition used, one or more types of bank money. Bank money, which consists only of records, forms by far the largest part of money in developed countries. The word money is believed to originate from a temple of Juno, in the ancient world Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located, the name Juno may derive from the Etruscan goddess Uni and Moneta either from the Latin word monere or the Greek word moneres. In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning in kind. The use of methods may date back to at least 100,000 years ago. Instead, non-monetary societies operated largely along the principles of gift economy, when barter did in fact occur, it was usually between either complete strangers or potential enemies. Many cultures around the world eventually developed the use of commodity money, the Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley. The first usage of the came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, according to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins. It is thought by scholars that these first stamped coins were minted around 650–600 BC. The system of commodity money eventually evolved into a system of representative money and this occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty and these banknotes, known as jiaozi, evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins, in the 13th century, paper money became known in Europe through the accounts of travelers, such as Marco Polo and William of Rubruck
16.
Real estate
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Also, the business of real estate, the profession of buying, selling, or renting land, buildings or housing. It is a term used in jurisdictions whose legal system is derived from English common law, such as India, the United Kingdom, United States, Canada, Pakistan, Australia. Residential real estate may contain either a family or multifamily structure. Residences can be classified by, if, and how they are connected to neighbouring residences, different types of housing tenure can be used for the same physical type. For example, connected residents might be owned by an entity and leased out. Major categories in North America and Europe Attached / multi-unit dwellings Apartment or Flat – An individual unit in a multi-unit building, the boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in apartment buildings. Multi-family house – Often seen in multi-story detached buildings, where each floor is an apartment or unit. Terraced house – A number of single or multi-unit buildings in a row with shared walls. Condominium – Building or complex, similar to apartments, owned by individuals, common grounds and common areas within the complex are owned and shared jointly. There are townhouse or rowhouse style condominiums as well, semi-detached dwellings Duplex – Two units with one shared wall. Single-family detached house Portable dwellings Mobile homes – Potentially a full-time residence which can be movable on wheels, houseboats – A floating home Tents – Usually very temporary, with roof and walls consisting only of fabric-like material. The size of an apartment or house can be described in square feet or meters, in the United States, this includes the area of living space, excluding the garage and other non-living spaces. It can be described roughly by the number of rooms. A studio apartment has a bedroom with no living room. A one-bedroom apartment has a living or dining room separate from the bedroom, Two bedroom, three bedroom, and larger units are common. Major categories in India and the Asian Subcontinent Co-operative Housing Societies Condominiums Chawls Villas Havelis The size is measured in Gaz, Quila, Marla, Beegha, and acre. See List of house types for a listing of housing types and layouts, real estate trends for shifts in the market
17.
Property (ownership right)
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In the abstract, property is that which belongs to or with something, whether as an attribute or as a component of said thing. In economics and political economy, there are three forms of property, private property, public property, and collective property. Property that jointly belongs to more than one party may be possessed or controlled thereby in very similar or very distinct ways, whether simply or complexly, whether equally or unequally. However, there is an expectation that each partys will with regard to the property be clearly defined and unconditional, so as to distinguish ownership and this mediating relationship between individual, property and state is called a property regime. The distinction between property and private property is regarded as a confusion since different individuals often hold differing rights over a single object. An article of property may have physical and incorporeal parts, a title, or a right of ownership, establishes the relation between the property and other persons, assuring the owner the right to dispose of the property as the owner sees fit. Often property is defined by the code of the sovereignty, and protected wholly or more usually partially by such entity. The standards of proof concerning proofs of ownerships are also addressed by the code of the local sovereignty, some philosophers assert that property rights arise from social convention, while others find justifications for them in morality or in natural law. Property, in the first instance, is a thing-in-itself, when a person finds a thing and takes that thing into that persons possession and control, then that thing becomes a thing-for-you for that person. Generally, the ground and any buildings which are attached are considered real property, while movable goods. Also, property cannot be considered a concept, because in the first instance. Various scholarly disciplines may treat the concept more systematically, but definitions vary, positive law defines such rights, and the judiciary can adjudicate and enforce property rights. According to Adam Smith, the expectation of profit from improving ones stock of capital rests on private property rights, Capitalism has as a central assumption that property rights encourage their holders to develop the property, generate wealth, and efficiently allocate resources based on the operation of markets. From this has evolved the modern conception of property as a right enforced by law, in the expectation that this will produce more wealth. In his text The Common Law, Oliver Wendell Holmes describes property as having two fundamental aspects, the first, possession, can be defined as control over a resource based on the practical inability of another to contradict the ends of the possessor. The second, title, is the expectation that others will recognize rights to control resource and he elaborates the differences between these two concepts, and proposes a history of how they came to be attached to persons, as opposed to families or to entities such as the church. Classical liberalism subscribes to the theory of property. They hold that each own their own life, it follows that one must own the products of that life
18.
Assets
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In financial accounting, an asset is an economic resource. Anything tangible or intangible that can be owned or controlled to produce value, simply stated, assets represent value of ownership that can be converted into cash. The balance sheet of a firm records the value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business, one can classify assets into two major asset classes, tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets, current assets include inventory, while fixed assets include such items as buildings and equipment. Intangible assets are resources and rights that have a value to the firm because they give the firm some kind of advantage in the marketplace. Examples of intangible assets include goodwill, copyrights, trademarks, patents and computer programs, an asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. One of the most widely accepted accounting definitions of asset is the one used by the International Accounting Standards Board, employees are not considered assets like machinery is, even though they can generate future economic benefits. This is because an entity does not have sufficient control over its employees to satisfy the Frameworks definition of an asset, similarly, in economics an asset is any form in which wealth can be held. The accounting equation is the structure of the balance sheet. It relates assets, liabilities, and owners equity, Assets = Liabilities + Capital Liabilities = Assets − Capital Equity = Assets − Liabilities Assets are listed on the balance sheet. On a companys balance sheet certain divisions are required by generally accepted accounting principles, Assets can be divided into e. g. current assets and fixed assets, often with further subdivisions such as cash, receivables and inventory. Assets are formally controlled and managed within larger organizations via the use of asset tracking tools and these monitor the purchasing, upgrading, servicing, licensing, disposal etc. of both physical and non-physical assets. Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle and these assets are continually turned over in the course of a business during normal business activity. There are 5 major items included into current assets, Cash and cash equivalents – it is the most liquid asset, which includes currency, deposit accounts, short-term investments – include securities bought and held for sale in the near future to generate income on short-term price differences. Receivables – usually reported as net of allowance for non-collectable accounts, inventory – trading these assets is a normal business of a company. The inventory value reported on the sheet is usually the historical cost or fair market value. This is known as the lower of cost or market rule, prepaid expenses – these are expenses paid in cash and recorded as assets before they are used or consumed
19.
Liability (financial accounting)
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Liabilities in financial accounting need not be legally enforceable, but can be based on equitable obligations or constructive obligations. An equitable obligation is a duty based on ethical or moral considerations, a constructive obligation is an obligation that is implied by a set of circumstances in a particular situation, as opposed to a contractually based obligation. The accounting equation relates assets, liabilities, and owners equity, probably the most accepted accounting definition of liability is the one used by the International Accounting Standards Board. The following is a quotation from IFRS Framework, Regulations as to the recognition of liabilities are different all over the world, examples of types of liabilities include, money owing on a loan, money owing on a mortgage, or an IOU. Liabilities are debts and obligations of the business they represent as creditors claim on business assets and they usually include payables such as wages, accounts, taxes, and accounts payable, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations. Long-term liabilities — these liabilities are reasonably expected not to be liquidated within a year and they usually include issued long-term bonds, notes payables, long-term leases, pension obligations, and long-term product warranties. Liabilities of uncertain value or timing are called provisions, when a company deposits cash with a bank, the bank records a liability on its balance sheet, representing the obligation to repay the depositor, usually on demand. Simultaneously, in accordance with the principle, the bank records the cash, itself. The company, on the hand, upon depositing the cash with the bank, records a decrease in its cash. A debit either increases an asset or decreases a liability, a credit either decreases an asset or increases a liability, according to the principle of double-entry, every financial transaction corresponds to both a debit and a credit. When cash is deposited in a bank, the bank is said to debit its cash account, on the asset side, in this case, the bank is debiting an asset and crediting a liability, which means that both increase. When cash is withdrawn from a bank, the opposite happens, in this case, the bank is crediting an asset and debiting a liability, which means that both decrease
20.
Income
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Income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. However, for households and individuals, income is the sum of all the wages, salaries, profits, interests payments, rents, in a given period of time. In the field of economics, the term may refer to the accumulation of both monetary and non-monetary consumption ability, with the former being used as a proxy for total income. Income per capita has been increasing steadily in almost every country, many factors contribute to people having a higher income such as education, globalisation and favorable political circumstances such as economic freedom and peace. Increase in income tends to lead to people choosing to work less hours. Developed countries have higher incomes as opposed to developing countries tending to have lower incomes, from labor services, as well as ownership of land and capital. In consumer theory income is another name for the budget constraint, the basic equation for this is Y = P x ⋅ x + P y ⋅ y This equation implies two things. First buying one unit of good x implies buying P x P y less units of good y. So, P x P y is the price of a unit of x as to the number of units given up in y. Second, if the price of x falls for a fixed Y, the usual hypothesis is that the quantity demanded of x would increase at the lower price, the law of demand. The generalization to more than two goods consists of modelling y as a composite good, the theoretical generalization to more than one period is a multi-period wealth and income constraint. For example, the person can gain more productive skills or acquire more productive income-earning assets to earn a higher income. In the multi-period case, something might happen to the economy beyond the control of the individual to reduce the flow of income. Changing measured income and its relation to consumption over time might be modeled accordingly, full income refers to the accumulation of both the monetary and the non-monetary consumption-ability of any given entity, such as a person or a household. According to what the economist Nicholas Barr describes as the definition of income, income may be defined as the. Sum of the value of rights exercised in consumption and the change in the value of the store of property rights. Since the consumption potential of non-monetary goods, such as leisure, cannot be measured, as such, however, it is criticized for being unreliable, i. e. failing to accurately reflect affluence of any given agent. It omits the utility a person may derive from non-monetary income and, on a macroeconomic level, according to Barr, in practice money income as a proportion of total income varies widely and unsystematically
21.
Capital (economics)
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In economics, capital goods, real capital, or capital assets are already-produced, durable goods or any non-financial asset that is used in production of goods or services. Adam Smith defines capital as That part of a stock which he expects to afford him revenue. The term stock is derived from the Old English word for stump or tree trunk and it has been used to refer to all the moveable property of a farm since at least 1510. In Middle Ages France contracted leases and loans bearing interest specified payment, how a capital good is maintained or returned to its pre-production state varies with the type of capital involved. In most cases capital is replaced after a period as newer forms of capital make continued use of current capital non profitable. It is also possible that advances make a form of capital practical again. Capital is distinct from land in that capital can be increased by human labor, at any given moment in time, total physical capital may be referred to as the capital stock. Capital is an input in the production function, homes and personal autos are not usually defined as capital but as durable goods because they are not used in a production of saleable goods and services. In Marxist political economy, capital is used to buy something only in order to sell it again to realize a financial profit. In more contemporary schools of economics, this form of capital is referred to as financial capital and is distinguished from capital goods. Classical and neoclassical economics regard capital as one of the factors of production, all other inputs to production are called intangibles in classical economics. This includes organization, entrepreneurship, knowledge, goodwill, or management and this is what makes it a factor of production, The good is not used up immediately in the process of production unlike raw materials or intermediate goods. The good can be produced or increased and these distinctions of convenience have carried over to contemporary economic theory. There was the clarification that capital is a stock. As such, its value can be estimated at a point in time, by contrast, investment, as production to be added to the capital stock, is described as taking place over time, thus a flow. Since at least the 1960s economists have increasingly focused on forms of capital. These terms lead to questions and controversies discussed in those articles. It is in the form of assets, traded in financial markets
22.
Stocks
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Stocks are devices that were used internationally, in medieval, Renaissance and colonial American times as a form of physical punishment involving public humiliation. The stocks partially immobilized its victims and they were exposed in a public place such as the site of a market to the scorn of those who passed by. This scorn was commonly represented by throwing food at the victim. With stocks, boards are placed around the ankles and the wrists in some cases, whereas in the pillory they are placed around the arms and neck and fixed to a pole, and the victim stands. However, the terms can be confused, and many refer to the pillory as the stocks. The victims feet were bare, this caused heightened humiliation. Since stocks served a public form of punishment, its victims were subjected to the daily and nightly weather. As a consequence it was common for people kept in stocks over several days to die from exposure, the practice of using stocks continues to be cited as an example of torture and cruel and unusual punishment. Victims may be insulted, kicked, tickled, spat on, one of the earliest references to the stocks in literature appears in the Bible. Paul and Silas, disciples of Jesus, were arrested and their treatment by their jailer was detailed in the Book of Acts, Having received such a charge, he put them into the inner prison and fastened their feet in the stocks. The Old Testaments book of Job also describes the stocks, referring to God, He puts my feet in the stocks, he watches all my paths. The stocks were popular among civil authorities from medieval to early modern times. In the stocks, an offenders ankles, and sometimes wrists, the stocks were popular during the Colonial days in America. Public punishment in the stocks was an occurrence from around 1500 until at least 1748. The stocks were popular among the early American Puritans, who frequently employed the stocks for punishing the lower class. In the American colonies, the stocks were used, not only for punishment. They would eventually be brought before a judge, the offender would be exposed to whatever treatment those who passed by could imagine. This could include tickling of the feet, englands second Statute of Labourers prescribed the use of the stocks for unruly artisans in 1350, and required that every town and village erect a set of stocks
23.
Bond (finance)
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In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds, interest is usually payable at fixed intervals. Very often the bond is negotiable, that is, the ownership of the instrument can be transferred in the secondary market and this means that once the transfer agents at the bank medallion stamp the bond, it is highly liquid on the second market. Thus, a bond is a form of loan or IOU, the holder of the bond is the lender, the issuer of the bond is the borrower, and the coupon is the interest. Bonds provide the borrower with funds to finance long-term investments, or, in the case of government bonds. Certificates of deposit or short term commercial paper are considered to be money market instruments and not bonds, the main difference is in the length of the term of the instrument. Bonds and stocks are both securities, but the difference between the two is that stockholders have an equity stake in the company, whereas bondholders have a creditor stake in the company. Being a creditor, bondholders have priority over stockholders and this means they will be repaid in advance of stockholders, but will rank behind secured creditors in the event of bankruptcy. Another difference is that usually have a defined term, or maturity, after which the bond is redeemed. An exception is a bond, such as a consol, which is a perpetuity, that is. Bonds are issued by authorities, credit institutions, companies. The most common process for issuing bonds is through underwriting, when a bond issue is underwritten, one or more securities firms or banks, forming a syndicate, buy the entire issue of bonds from the issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. Primary issuance is arranged by bookrunners who arrange the bond issue, have contact with investors and act as advisers to the bond issuer in terms of timing. The bookrunner is listed first among all participating in the issuance in the tombstone ads commonly used to announce bonds to the public. The bookrunners willingness to underwrite must be discussed prior to any decision on the terms of the issue as there may be limited demand for the bonds. In contrast, government bonds are issued in an auction. In some cases, both members of the public and banks may bid for bonds, in other cases, only market makers may bid for bonds
24.
Business
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A business is an organizational entity involved in the provision of goods and services to consumers. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social, a business owned by multiple private individuals may form as an incorporated company or jointly organise as a partnership. Countries have different laws that may ascribe different rights to the business entities. The word business can refer to an organization or to an entire market sector or to the sum of all economic activity. Compound forms such as agribusiness represent subsets of the broader meaning. Businesses aim to maximize sales to have their income exceed their expenditures, resulting in a profit, the owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, partnership, A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business, the three most prevalent types of for-profit partnerships are, general partnerships, limited partnerships, and limited liability partnerships. Corporation, The owners of a corporation have limited liability and the business has a legal personality from its owners. Corporations can be either government-owned or privately owned and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, a privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange. Cooperative, Often referred to as a co-op, a cooperative is a limited-liability business that can organize as for-profit or not-for-profit, a cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives, cooperatives are fundamental to the ideology of economic democracy. In contrast, unincorporated businesses or persons working on their own are not as protected. Franchises, A franchise is a system in which entrepreneurs purchase the rights to open, franchising in the United States is widespread and is a major economic powerhouse. One out of retail businesses in the United States are franchised and 8 million people are employed in a franchised business. Real estate businesses sell, invest, construct and develop properties – including land, residential homes, retailers, wholesalers, and distributors act as middlemen and get goods produced by manufacturers to the intended consumers, they make their profits by marking up their prices. Most stores and catalog companies are distributors or retailers, transportation businesses such as railways, airlines, shipping companies that deliver goods and individuals to their destinations for a fee
25.
Social stratification
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Social stratification is a societys categorization of people into socioeconomic strata, based upon their occupation and income, wealth and social status, or derived power. As such, stratification is the social position of persons within a social group, category, geographic region. The upper-stratum, the middle-stratum, and the lower stratum, moreover, a social stratum can be formed upon the bases of kinship or caste, or both. Determining the structures of social stratification arises from inequalities of status among persons, therefore, generally, the greater the social complexity of a society, the more social strata exist, by way of social differentiation. Social stratification is a used in the social sciences to describe the relative social position of persons in a given social group, category. In modern Western societies, stratification is often classified into three major divisions of social class, upper class, middle class, and lower class. Each of these classes can be subdivided into smaller classes. Social strata may also be delineated on the basis of kinship ties or caste relations, the concept of social stratification is often used and interpreted differently within specific theories. So-called conflict theories, such as Marxism, point to the inaccessibility of resources, talcott Parsons, an American sociologist, asserted that stability and social order are regulated, in part, by universal values. Such values are not identical with consensus but can as well be an impetus for ardent social conflict as it has multiple times through history. Parsons never claimed that universal values, in and by themselves, indeed, the constitution of society is a much more complicated codification of emerging historical factors. Theorists such as Ralf Dahrendorf alternately note the tendency toward an enlarged middle-class in modern Western societies due to the necessity of a workforce in technological economies. Various social and political perspectives concerning globalization, such as dependency theory, four principles are posited to underlie social stratification. First, social stratification is socially defined as a property of a society rather than individuals in that society, second, social stratification is reproduced from generation to generation. Third, social stratification is universal but variable, fourth, social stratification involves not just quantitative inequality but qualitative beliefs and attitudes about social status. Although stratification is not limited to complex societies, all complex societies exhibit features of stratification, the term stratification system is sometimes used to refer to the complex social relationships and social structure that generate these observed inequalities. Social mobility is the movement of individuals, social groups or categories of people between the layers or strata in a stratification system and this movement can be intragenerational or intergenerational. Such mobility is used to classify different systems of social stratification
26.
Poverty
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Poverty is general scarcity or the state of one who lacks a certain amount of material possessions or money. It is a concept, which includes social, economic. Absolute poverty or destitution refers to the lack of necessary to meet basic needs such as food, clothing. Absolute poverty is meant to be about the independent of location. After the industrial revolution, mass production in factories made producing goods increasingly less expensive, of more importance is the modernization of agriculture, such as fertilizers, to provide enough yield to feed the population. Strategies of increasing income to make basic needs more affordable typically include welfare, economic freedoms, Poverty reduction is a major goal and issue for many international organizations such as the United Nations and the World Bank. The World Bank forecasts that 702.1 million people, down from 1.75 billion in 1990, of these, about 347.1 million people lived in Sub-Saharan Africa and 231.3 million lived in South Asia. According to the World Bank, between 1990 and 2015, the percentage of the population living in extreme poverty fell from 37. 1% to 9. 6%. Nevertheless, given the current economic model, built on GDP, extreme poverty is a global challenge, it is observed in all parts of the world, including developed economies. UNICEF estimates half the children live in poverty. It has been argued by some academics that the policies promoted by global financial institutions such as the IMF. Another estimate places the true scale of poverty much higher than the World Bank, with an estimated 4.3 billion people living with less than $5 a day and unable to meet basic needs adequately. In 2012 it is estimated that, given a poverty line of $1.25 a day 1.2 billion people lived in poverty, the word poverty comes from old French poverté, from Latin paupertās from pauper. The English word poverty via Anglo-Norman povert, there are several definitions of poverty depending on the context of the situation it is placed in, and the views of the person giving the definition. Income Poverty, a familys income fails to meet a federally established threshold that differs across countries, United Nations, Fundamentally, poverty is the inability of having choices and opportunities, a violation of human dignity. It means lack of capacity to participate effectively in society. It means insecurity, powerlessness and exclusion of individuals, households and it means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation. World Bank, Poverty is pronounced deprivation in well-being, and comprises many dimensions and it includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity
27.
Social contract
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The question of the relation between natural and legal rights, therefore, is often an aspect of social contract theory. The term takes its name from The Social Contract, a 1762 book by Jean-Jacques Rousseau that discussed this concept, the starting point for most social contract theories is an examination of the human condition absent any political order that Thomas Hobbes termed the state of nature. In this condition, individuals actions are only by their personal power. Each solved the problem of authority in a different way. Grotius posited that human beings had natural rights. Thomas Hobbes famously said that in a state of nature, human life would be solitary, poor, nasty, brutish, though the sovereigns edicts may well be arbitrary and tyrannical, Hobbes saw absolute government as the only alternative to the terrifying anarchy of a state of nature. Hobbes asserted that humans consent to abdicate their rights in favor of the authority of government. Pufendorf disputed Hobbess equation of a state of nature with war, the central assertion of social contract approaches is that law and political order are not natural, but are instead human creations. According to Hobbes citizens are not obligated to submit to the government when it is too weak to act effectively to suppress factionalism, the Lockean concept of the social contract was invoked in the United States Declaration of Independence. The concept of the contract is posed by Glaucon, as described by Plato in The Republic. They say that to do injustice is, by nature, good, to suffer injustice, evil, for no man who is worthy to be called a man would ever submit to such an agreement if he were able to resist, he would be mad if he did. Such is the account, Socrates, of the nature. The social contract theory also appears in Crito, another dialogue from Plato, Social contract formulations are preserved in many of the worlds oldest records. The Buddhist text of the second century BCE, Mahāvastu, recounts the legend of Mahasammata, then gradually the process of cosmic decay began its work, and mankind became earthbound, and felt the need of food and shelter. As men lost their glory, distinctions of class arose, and they entered into agreements with one another, accepting the institution of private property. He was called the Great Chosen One, and he received the title of raja because he pleased the people, in his rock edicts, the Buddhist king Asoka was said to have argued for a broad and far-reaching social contract. Natural justice is a pledge of reciprocal benefit, to prevent one man from harming or being harmed by another. There never was such a thing as justice, but only agreements made in mutual dealings among men in whatever places at various times providing against the infliction or suffering of harm
28.
Developing country
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Also, the general term less-developed country should not be confused with the specific least developed country. The term developing describes a currently observed situation and not a dynamic or expected direction of progress, since the late 1990s developing countries tended to demonstrate higher growth rates than the developed ones. There is criticism of the use of the developing country. The term implies inferiority of a country or undeveloped country compared with a developed country. It assumes a desire to develop along the traditional Western model of development which a few countries, such as Cuba and Bhutan. An alternative measurement that has suggested is that of gross national happiness. Countries on the boundary between developed and developing are often categorized under the newly industrialized countries. In the 2016 edition of its World Development Indicators, the World Bank made a decision to no longer distinguish between “developed” and “developing” countries in the presentation of its data, nobody has ever agreed on a definition for these terms in the first place. Various terms are used for whatever is not a developed country, terms used include less developed country or less economically developed country, and for the more extreme, least developed country or least economically developed country. But according to the United Nations Statistics Division, There is no established convention for the designation of developed, the World Bank classifies countries into four income groups. These are set each year on July 1, economies were divided according to 2016 GNI per capita using the following ranges of income, Low income countries had GNI per capita of US$1,025 or less. Lower middle income countries had GNI per capita between US$1,026 and US$4,035, upper middle income countries had GNI per capita between US$4,036 and US$12,475. High income countries had GNI per capita above US$12,476 and this may be by absolute numbers or country ranking. The UN has developed the Human Development Index, an indicator of the above statistics. The UN sets Millennium Development Goals from a blueprint developed by all of the countries and leading development institutions. There is an association between low income and high population growth. The terms utilized when discussing developing countries refer to the intent, other terms sometimes used are less developed countries, least economically developed countries, underdeveloped nations or Third World nations, and non-industrialized nations. Conversely, developed countries, most economically developed countries, First World nations and that is, LEDCs are the poorest subset of LDCs
29.
Industrialisation
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As industrial workers incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth. Later commentators have called this the First Industrial Revolution, the invention of the assembly line gave this phase a boost. Coal mines, steelworks, and textile factories replaced homes as the place of work, by the end of the 20th century, East Asia had become one of the most recently industrialised regions of the world. The BRICS states are undergoing the process of industrialisation, there is considerable literature on the factors facilitating industrial modernisation and enterprise development. The concentration of labour into factories has increased urbanisation and the size of settlements, to serve, workers have to either leave their families or bring them along in order to work in the towns and cities where these industries are found. The family structure changes with industrialisation, the sociologist Talcott Parsons noted that in pre-industrial societies there is an extended family structure spanning many generations who probably remained in the same location for generations. In industrialised societies the nuclear family, consisting of parents and their growing children. Families and children reaching adulthood are more mobile and tend to relocate to where jobs exist, extended family bonds become more tenuous. Currently the international development community endorses development policies like water purification or primary education and Co-Operation amongst third world communities, the relationships among economic growth, employment, and poverty reduction are complex. Higher productivity is argued to be leading to lower employment, division of labour Newly industrialised country Idea of Progress Chandler Jr. Alfred D. The Visible Hand, The Management Revolution in American Business, belknap Press of Harvard University Press. Hewitt, T. Johnson, H. and Wield, D. industrialisation and Development, Oxford University Press, hobsbawm, Eric, The Age of Revolution. Kemp, Tom Historical Patterns of Industrialisation, Longman, London, ISBN 0-582-09547-6 Kiely, R industrialisation and Development, A comparative analysis, UCL Press, London. The Unbound Prometheus, Technological Change and Industrial Development in Western Europe from 1750 to the Present, Cambridge, New York, Press Syndicate of the University of Cambridge. Pomeranz, Ken The Great Divergence, China, Europe and the Making of the Modern World Economy by Tilly, industrialization as an Historical Process, European History Online, Mainz, Institute of European History,2010, retrieved,29 February 2011
30.
Natural capital
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Natural capital is the worlds stock of natural resources, which includes geology, soils, air, water and all living organisms. Natural capital assets provide people with a range of free goods and services, often called ecosystem services. It is an extension of the notion of capital to goods. Natural capital is one approach to ecosystem valuation which revolves around the idea, in contrast to traditional economics, thus, ecological health is essential to the sustainability of the economy. In Natural Capitalism, Creating the Next Industrial Revolution the author claims that the economy is within a larger economy of natural resources. In order to continue to reap the benefits of our natural environment, in a traditional economic analysis of the factors of production, natural capital would usually be classified as land distinct from traditional capital. The historical distinction between land and capital defined “land” as naturally occurring with a supply, whereas “capital”. It is however, misleading to view land as if its productive capacity is fixed, moreover, natural capital yields benefits and goods, such as timber or food, which can be harvested by humans. These benefits are similar to those realized by owners of capital which yields more goods. All users of the term currently differentiate natural from man-made or infrastructural capital in some way and it is difficult to measure such a deficit without some agreement on methods of valuation and auditing of at least the global forms of natural capital. Ecologists are teaming up with economists to measure and express values of the wealth of ecosystems as a way of finding solutions to the biodiversity crisis. Some researchers have attempted to place a figure on ecosystem services such as the value that the Canadian boreal forests contribution to global ecosystem services. If ecologically intact, the boreal forest has a value of US$3.7 trillion. The boreal forest ecosystem is one of the planets great atmospheric regulators, the annual value for ecological services of the Boreal Forest is estimated at US$93.2 billion, or 2.5 greater than the annual value of resource extraction. The economic value of 17 ecosystem services for the biosphere has an estimated average value of US$33 trillion per year. The loss of natural capital continues to accelerate and goes undetected or ignored by mainstream monetary analysis, in June 2012 a national capital declaration was launched at the Rio+20 summit held in Brazil. They worked with supporting organisations to develop tools and metrics to integrate natural capital factors into existing business structures, in July 2016, the Natural Capital Coalition released the Natural Capital Protocol. The Protocol provides a framework for organisations to identify, measure and value their direct and indirect impacts
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Infrastructural capital
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Public capital is the aggregate body of government-owned assets that are used as a means for private productivity. Often, public capital is defined as government outlay, in terms of money, in 1988, the U. S. infrastructure system including all public and private non-residential capital stock was valued at $7 trillion, an immense portfolio to operate and manage. And according to the Congressional Budget Office, in 2004 the U. S, while public spending on infrastructure grew by 1. 7% annually between 1956 and 2004, it has remained constant as a share of GDP since early 1980s. The American Society of Civil Engineers have continued to give low marks, averaging a D grade, in 2009, each category of infrastructure varied from C+ to D- grades with an estimated $2.2 trillion of needed public capital investment. The aviation sector remains mired in continued delays in the reauthorization of federal programs, one in four rural bridges and one in three urban bridges are structurally deficient. States are understaffed and underfunded to conduct safety inspections of dams, texas alone has only seven engineers and an annual budget of $435,000 to oversee more than 7,400 dams. Electricity demand outpaces energy supply transmission and generation, almost half of the water locks maintained by the U. S. Army Corps of Engineers are functionally obsolete. Drinking water faces an annual shortfall of $11 billion to manage their aging facilities, leaking pipes lose an estimated 7 billion US gallons of clean drinking water a day. Under tight budgets, national, state, and local parks suffer neglect, without adequate funding, rail cannot meet future freight tonnage load. Schools require a staggering $127 billion to bring facilities to decent operating condition, billions of gallons of untreated sewage continue to be discharged into U. S. ’s surface waters each year. One of the most classic macroeconomic inquiries is the effect of capital investment on economic growth. While many analysts debate the magnitude, evidence has shown a significant positive relationship between infrastructure investment and economic performance. U. S. Federal Reserve economist David Alan Aschauer asserted an increase of the capital stock by 1% would result in an increase of the total factor productivity by 0. 4%. Aschauer argues that the age of the 1950s and 1960s were partly due to the post-World War II substantial investment in core infrastructure. Conversely, the drop of U. S. productivity growth in the 1970s and 1980s was in response to the decrease of continual public capital investment, likewise, the European Union nations have declined public capital investment through the same years, also witnessing declining productivity growth rates. A similar situation emerges in developing nations, however, this relationship depends on initial levels of public capital and income levels for the country. Thus, OECD countries witness a stronger positive link in the term while non-OECD countries experience a stronger positive link in the long term. Hence, developing countries can benefit from non-concessional foreign borrowing to finance high-prospect public capital investments, additionally, public capital has an indirect influence on multifactor productivity as it affects the other two inputs of labor and private capital
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David Ricardo
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David Ricardo was a British political economist. He was one of the most influential of the economists, along with Thomas Malthus, Adam Smith. Born in London, England, Ricardo was the third of 17 children of a Sephardic Jewish family of Portuguese origin who had relocated from the Dutch Republic. His father, Abraham Ricardo, was a successful stockbroker and he began working with his father at the age of 14. At age 21, Ricardo eloped with a Quaker, Priscilla Anne Wilkinson and this religious difference resulted in estrangement from his family, and he was led to adopt a position of independence. His father disowned him and his mother never spoke to him again. Following this estrangement he went into business for himself with the support of Lubbocks and Forster and he made the bulk of his fortune as a result of speculation on the outcome of the Battle of Waterloo. Prior to the battle, Ricardo posted an observer to convey early results of the outcome and he then deliberately created the mistaken impression the French had won by initially openly selling British securities. Following this panic he moved to buy British securities at a steep discount, the Sunday Times reported in Ricardo’s obituary, published on 14 September 1823, that during the Battle of Waterloo Ricardo netted upwards of a million sterling, a huge sum at the time. He was appointed High Sheriff of Gloucestershire for 1818–19, in August 1818 he bought Lord Portarlington’s seat in Parliament for £4,000, as part of the terms of a loan of £25,000. His record in Parliament was that of an earnest reformer and he held the seat until his death four years later. Ricardo was a friend of James Mill. Other notable friends included Jeremy Bentham and Thomas Malthus, with whom Ricardo had a debate over such things as the role of landowners in a society. He also was a member of Malthus Political Economy Club, and he was one of the original members of The Geological Society. His sister was author Sarah Ricardo-Porter and he voted with opposition in support of the liberal movements in Naples,21 Feb. and Sicily,21 June, and for inquiry into the administration of justice in Tobago,6 June. He divided for repeal of the Blasphemous and Seditious Libels Act,8 May, inquiry into the Peterloo massacre,16 May and he adamantly supported the implementation of free trade. He voted against renewal of the duties,9 Feb. He voted silently for parliamentary reform,25 Apr.3 June and he again voted for criminal law reform,4 June
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John Locke
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John Locke FRS was an English philosopher and physician, widely regarded as one of the most influential of Enlightenment thinkers and commonly known as the Father of Liberalism. Considered one of the first of the British empiricists, following the tradition of Sir Francis Bacon and his work greatly affected the development of epistemology and political philosophy. His writings influenced Voltaire and Jean-Jacques Rousseau, many Scottish Enlightenment thinkers and his contributions to classical republicanism and liberal theory are reflected in the United States Declaration of Independence. Locke was the first to define the self through a continuity of consciousness and he postulated that, at birth, the mind was a blank slate or tabula rasa. This is now known as empiricism, an example of Lockes belief in Empiricism can be seen in his quote, whatever I write, as soon as I discover it not to be true, my hand shall be the forwardest to throw it into the fire. This shows the ideology of science in his observations in that something must be capable of being tested repeatedly, challenging the work of others, Locke is said to have established the method of introspection, or observing the emotions and behaviours of one’s self. Locke was born on 29 August 1632, in a thatched cottage by the church in Wrington, Somerset. He was baptised the same day, soon after Lockes birth, the family moved to the market town of Pensford, about seven miles south of Bristol, where Locke grew up in a rural Tudor house in Belluton. In 1647, Locke was sent to the prestigious Westminster School in London under the sponsorship of Alexander Popham, after completing studies there, he was admitted to Christ Church, Oxford, in the autumn of 1652 at the age of twenty. The dean of the college at the time was John Owen, although a capable student, Locke was irritated by the undergraduate curriculum of the time. He found the works of philosophers, such as René Descartes. Locke was awarded a degree in February 1656 and a masters degree in June 1658. In 1666, he met Lord Anthony Ashley Cooper, 1st Earl of Shaftesbury, Cooper was impressed with Locke and persuaded him to become part of his retinue. Locke had been looking for a career and in 1667 moved into Shaftesburys home at Exeter House in London, in London, Locke resumed his medical studies under the tutelage of Thomas Sydenham. Sydenham had an effect on Lockes natural philosophical thinking – an effect that would become evident in An Essay Concerning Human Understanding. Lockes medical knowledge was put to the test when Shaftesburys liver infection became life-threatening, Locke coordinated the advice of several physicians and was probably instrumental in persuading Shaftesbury to undergo surgery to remove the cyst. Shaftesbury survived and prospered, crediting Locke with saving his life, Shaftesbury, as a founder of the Whig movement, exerted great influence on Lockes political ideas. Locke became involved in politics when Shaftesbury became Lord Chancellor in 1672, following Shaftesburys fall from favour in 1675, Locke spent some time travelling across France as tutor and medical attendant to Caleb Banks
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John Stuart Mill
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John Stuart Mill was an English philosopher, political economist and civil servant. One of the most influential thinkers in the history of liberalism, he contributed widely to social theory, political theory, Mill was a proponent of utilitarianism, an ethical theory developed by his predecessor Jeremy Bentham, and contributed significantly to the theory of the scientific method. A member of the Liberal Party, he was also the first Member of Parliament to call for womens suffrage. John Stuart Mill was born on Rodney Street in the Pentonville area of London, the eldest son of the Scottish philosopher, historian and economist James Mill, John Stuart was educated by his father, with the advice and assistance of Jeremy Bentham and Francis Place. He was given a rigorous upbringing, and was deliberately shielded from association with children his own age other than his siblings. Mill was a precocious child. He describes his education in his autobiography, at the age of three he was taught Greek. By the age of eight, he had read Aesops Fables, Xenophons Anabasis, and the whole of Herodotus and he had also read a great deal of history in English and had been taught arithmetic, physics and astronomy. At the age of eight, Mill began studying Latin, the works of Euclid, and algebra and his main reading was still history, but he went through all the commonly taught Latin and Greek authors and by the age of ten could read Plato and Demosthenes with ease. His father also thought that it was important for Mill to study, one of Mills earliest poetic compositions was a continuation of the Iliad. In his spare time he enjoyed reading about natural sciences and popular novels, such as Don Quixote. In the following year he was introduced to political economy and studied Adam Smith and David Ricardo with his father, Ricardo, who was a close friend of his father, used to invite the young Mill to his house for a walk in order to talk about political economy. At the age of fourteen, Mill stayed a year in France with the family of Sir Samuel Bentham, the mountain scenery he saw led to a lifelong taste for mountain landscapes. The lively and friendly way of life of the French also left an impression on him. In Montpellier, he attended the courses on chemistry, zoology, logic of the Faculté des Sciences. While coming and going from France, he stayed in Paris for a few days in the house of the renowned economist Jean-Baptiste Say, there he met many leaders of the Liberal party, as well as other notable Parisians, including Henri Saint-Simon. Mill went through months of sadness and pondered suicide at twenty years of age, according to the opening paragraphs of Chapter V of his autobiography, he had asked himself whether the creation of a just society, his lifes objective, would actually make him happy. His heart answered no, and unsurprisingly he lost the happiness of striving towards this objective, eventually, the poetry of William Wordsworth showed him that beauty generates compassion for others and stimulates joy
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Classical economics
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Classical economics asserts that markets function best with minimal government interference. It was developed in the late 18th and early 19th century by Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, many writers found Adam Smiths idea of free markets more convincing than the idea, widely accepted at the time, of protectionism. Adam Smiths The Wealth of Nations in 1776 is usually considered to mark the beginning of classical economics, Classical economics originally differed from modern libertarian economics in seeing a role for the state in providing for the common good. Classical economists observe that markets generally regulate themselves, when free of coercion, Adam Smith referred to this as a metaphorical invisible hand, which refers to the notion that private incentives are aligned with society welfare maximization under certain competitive conditions. Smith warned repeatedly of the dangers of monopoly, and stressed the importance of competition, there is some debate about what is covered by the term classical economics, particularly when dealing with the period from 1830–75, and how classical economics relates to Neoclassical economics. These changes raised the question of how a society could be organized around a system in every individual sought his or her own gain. Classical political economy is popularly associated with the idea that markets can regulate themselves. Classical economists and their immediate predecessors reoriented economics away from an analysis of the personal interests to broader national interests. Adam Smith, and also physiocrat François Quesnay, for example, identified the wealth of a nation with the national income. Smith saw this income as produced by labour, land, with property rights to land and capital held by individuals, the national income is divided up between labourers, landlords, and capitalists in the form of wages, rent, and interest or profits. Henry George is sometimes known as the last classical economist or as a bridge, other ideas, however, have either disappeared from neoclassical discourse or been replaced by Keynesian economics in the Keynesian Revolution and neoclassical synthesis. Analyzing the growth in the wealth of nations and advocating policies to promote such growth was a focus of most classical economists. However, John Stuart Mill believed that the stationary state of a constant population size. John Hicks & Samuel Hollander, Nicholas Kaldor, Luigi L. Pasinetti, Classical economists developed a theory of value, or price, to investigate economic dynamics. In political economics, value usually refers to the value of exchange, william Petty introduced a fundamental distinction between market price and natural price to facilitate the portrayal of regularities in prices. Market prices are jostled by many transient influences that are difficult to theorize about at any abstract level, natural prices, according to Petty, Smith, and Ricardo, for example, capture systematic and persistent forces operating at a point in time. Market prices always tend toward natural prices in a process that Smith described as similar to gravitational attraction. The theory of what determined natural prices varied within the Classical school, Petty tried to develop a par between land and labour and had what might be called a land-and-labour theory of value
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Labor theory of value
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Both David Ricardo and Karl Marx tried to quantify and embody all labor components in order to develop a theory of the real price, or natural price of a commodity. But this value is subject to supply and demand at a particular time, the real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it. Smiths theory of price has nothing to do with the past labor spent in producing a commodity and it speaks only of the labor that can be commanded or saved at present. If there is no use for a whip, then the item is economically worthless in trade or in use. Value in use is the usefulness of this commodity, its utility, a classical paradox often comes up when considering this type of value. The one may be called value in use, the other, nothing is more useful than water, but it will purchase scarce any thing, scarce any thing can be had in exchange for it. A diamond, on the contrary, has any value in use. Value in exchange is the proportion with which this commodity exchanges for another commodity. It is relative to labor as explained by Adam Smith, The value of any commodity, Labour, therefore, is the real measure of the exchangeable value of all commodities. Value is the labor embodied in a commodity under a structure of production. Marx defined the value of the commodity by the third definition, in his terms, value is the socially necessary abstract labor embodied in a commodity. To Ricardo and other economists, this definition serves as a measure of real cost, absolute value, or a measure of value invariable under changes in distribution. Ricardo, other economists, and Marx began their expositions with the assumption that value in exchange was equal to or proportional to this labor value. They thought this was a good assumption from which to explore the dynamics of development in capitalist societies, other supporters of the labor theory of value used the word value in the second sense, to represent exchange value. The value of a commodity increases in proportion to the duration, part of what the LTV means by socially necessary is that the value only increases in proportion to this labor as it is performed with average skill and average productivity. Each unit still bears the same value as all the others of the class of commodity. By working sloppily, unskilled workers may drag down the average skill of labor, however, production not only involves labor, but also certain means of labor, tools, materials, power plants and so on. These means of labor—also known as means of production—are often the product of another labor process as well, so the labor process inevitably involves these means of production that already enter the process with a certain amount of value
