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Cost: This refers to the money expenses acquired on the production of a specified amount of commodity.
What is the condition when there is a deficit in balance of trade? Answer: When import > export
When there is an excess in the balance of trade? Answer: When export > import (that is, when export is greater than import).
Which cost might there if output is zero? Answer: Fixed cost
Marginal revenue: This is the change in total revenue by selling one more or a lesser amount of unit of commodity.
Marginal cost: It is the change in sum cost by generating one more or less unit of output.
Market supply: It refers to the sum of all outputs of all producers of a good at a price throughout a given time period.
What is the marginal rate of transformation or marginal rate of substitution or marginal opportunity cost? Answer: It is the ratio of units of one good scarified to generate one more unit of another
Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.
Balance of trade: It is the distinction between imports and exports of a country which are valued.
Production function: It is the technological relationship among input and output of a firm and is termed as production function.
What does leftward shift of PPC point out? Answer: It points out underutilization of resources.
What was rightward shift of PPC point out? Answer: It points out growth of the resources.
Why an economic problem does arise? Answer: It arises due to following reasons: A) Shortage of resources. B) Alternative utilizations of resources. C) Limitless wants and limited resources.
The balance of trade demonstrates a deficit of Rs 300 crore. The values of exports are Rs 500 crore. Determine the value of imports? Answer: As Balance of trade = Export - Import 300 = 500 - Import
Why change in stock is considered a portion of final expenditure? Answer: The Unsold stocks left with producers are supposed as purchased by the producers themselves. That is why it is sometime trea
What is another name of macroeconomics? Answer: Income theory
What is another name of micro economics? Answer: Price theory
Product market: It comprises of final services and goods.
Factor market: It comprises of factors of production namely land, labor, capital and associations.
Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.
Why borrowing is treated as capital receipts? Answer: Because it rises the liability of government.
Surplus budget: When receipts of government are greater than its receipts, it is termed as surplus budget.
Deficit budget: When expenditure of the government is greater than its receipts, it is termed as deficit budget.
What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.