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Unit-21: Macro Theories of Ricardo, Marx and Kailki

(iv) The factors of production have perfect employment status. Notes
(v) Technical knowledge rises by the time and it increases the marginal production.

Self Assessment

Multiple choice questions:
4. After Ricardo, relation of distribution of the income discussed by ...................... .
(a) many economists (b) socialists (c) astronomers (d) none of these
5. New prominent economists do not ....................... in relation to collective distribution.
(a) establish (b) praise (c) improvement (d) none of these
6. By the production result of Cobb and Douglass establishes total new prominent —
(a) men (b) thinking (c) theories (d) none of these

Explanation of Theory

According to Prof. Meed, there are three factors of production—(i) capital, (ii) Labour and (iii) Land.
Corresponding portion of the means of production, nature and rate of technical development and
establishment elasticity means of production depend on these two things.

Criticisms

(i) Theory of Prof. Meed depends upon unreal assumptions.
(ii) Result of Factors is not given on the basis of marginal production because the demand of marginal
theory is not possible.
(iii) Meed has accepted factors as variable in his theory but to do this is not a easy task.

Express your views in Kolder’s Total Revenue Distribution Theory.

21.3 Kailki’s Distribution Theory

Kailki’s Distribution Theory is based on monopoly power theory of Learner. Monopoly power means
how it is independent for price evaluation. Total powerful monopoly can fix the price of his production.
Total monopoly is just a delusion as Perfect Competition. The thought of Prof. Kalki is that the portion
of wages in national income is fixed by monopoly power. As monopoly power increases, the profit
increases and wages decreases but the price of raw material remains stable. In contrast if the price of
raw material increases then the portion of wages increases.

Self Assessment
State whether the following statements are True/False:
7. The factors of production get perfect employment.
8. The constant returns theory occurs in production.

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