Economics Essay Example | Topics and Well Written Essays - 1500 words - 18

Economics - Essay Example Generally, in economics there are mainly four factors required for production: land, labor, capital and resources. Among all these factors, labors are the key assets of an organization, and only they are eligible to obtain the reward for the work being done by them. An earnings means the total outcome or output of a stipulated process. The concept of income is a major component in economics, which is closely related with the demand, supply, and consumer tastes and preferences. But as far the research or the analysis of the economists is taken in to consideration, there is dissimilarity between the concept of earnings and income. The term income inequality indicates that there is an irregular distribution of income among the individuals. Generally, the term income may be of in two ways, such as personal income and house hold income. If there is dissimilarity between earnings and income inequality, it is necessary to analyze the reasons for such difference, and also essential to compare such differences among two nations. Due to the difference in income and earnings potentiality, there should be a chance that it will affect the overall economic impact of the nation also. Besides, there is a close relation between the income inequality and the impact of globalization. While analyzing the point of view of economists, it is necessary to give stress for making comparisons of the variations in income and earnings of different nations, but such comparison should not be fair, if it takes place between developing and developed countries, both are different in their level of economy. Organization for Economic Co-operation and Development (OECD) is a global entity, giving stress for various economic and social concepts for improving the overall economic development of various countries. It is very clear that the monetary income is some what related to the economic and social well being of both humans as well as the society as a whole. In