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Can GNP be more than GDP? Answer: Yes, GNP can be greater or more than GDP if NFIA is positive.
Can GDP be more than GNP? Answer: Yes, GDP can be greater or more than GNP if NFIA is negative.
Is import of machinery recorded in capital or current account? Answer: It is recorded in current account since it deals as the purchase of goods.
Production possibility curve or PPC: PPC exhibits different combination of a pair of goods, that can be produced with the given resources and method of production, that are fully and proficiently util
In which form of market, the demand curve is more elastic and why? Answer: Demand curve is more elastic under monopolistic since of the availability of close substitute.
Tax: It is a compulsory payment prepared by household and firm to government.
Average cost: It is the cost per unit of output.
Revenue of a firm: It is the sale or money receipts from the sale of product.
How is TVC derived from MC? Answer: TVC = Sigma MC
Money: Money is what money does. Or Money is something that is accepted as a medium of exchange and at similar time act as a store of value.
When planned savings are bigger or smaller than planned investment, then what will be its consequence on inventories? Answer: It will raise or reduce the inventories.
What will be the consequence of a rise or fall in the bank rate on money supply? Answer: It will reduce or raise the money supply.
State SLR (or Statutory liquidity ratio): It is the ratio of net or total demand and time deposits of commercial bank that, it has to keep in the form of specified liquid assets.
When MPC and MPS are equivalent then what is the value of multiplier? Answer: MPC = MPS = 1/2 Thus K = 1/MPS = 1/1/2 = 2/1 = 2 [that is, Multiplier K = 2].
Determine the price elasticity of supply of a commodity whose straight line supply curve passes via the origin forming an angle of 45 degree/75 degree? Answer: Unitary elastic (es = 1).
What is meant by the word price taker in the context of a firm? Answer: It means that firm does not contain any control over the price and it has to pursue that price that is determined by industry.
Utility: The wants satisfying power of a commodity is termed as utility.
Change in quantity demanded: When change in demand takes place due to price alone, it is termed as change in quantity demanded.
Change in demand: When change in demand takes place due to change in factor other than price, it is termed as change in demand.
Bank rate: This is the rate of interest at which central bank provides loan and advance to commercial banks.
Why entertainment tax comes in indirect tax? Answer: Since its burden can be shifted to others.
Provide some sources of not tax revenue? Answer: Escheat, income from public enterprises, special assessment, fees and fines and so on.
Voluntary unemployment: It refers to a condition when person are not willing to do work at customary market wage rate, though they are receiving a work.
What takes place to equilibrium of a commodity when there is a decrease in its demand and increase in its supply? Answer: The equilibrium price will reduce.
What persuades new firms to enter in an industry? Answer: Abnormal profit encourages new firms to enter an industry.