Ask any economics question and an expert will answer it in as little as 30 minutes. (c) Mixed economy Economics Questions and Answers - Discover the eNotes.com community of teachers, mentors and students just like you that can answer any question you might have on Economics For information about the data and how to use it, see the Comparative Data section. Nor is he affected by others. Principles of Economics Chapter Exam Instructions. Rather it means that the determinate solution to the problem of bilateral monopoly is beyond the tools of economic analysis. (d) Lal Bahadur Shastri, (a) Socialistic economy 1. First is in the direction of much greater co-ordination and integration. 11. Every co-partner is guaranteed a “bare subsistence” irrespective of the extent of his contribution to the business. In this connection we may note that the Administrative Reforms Commission’s Study Team on Public Undertakings recommended that our public enterprises should pursue a pricing policy that ensures not merely that the cost is covered but also the financial requirements of other developmental plans of the country can be financed through their surpluses. This is exemplified in Table 3.1 at output levels of 13, 14, and 15 units. As “Karta” takes the responsibility to manage the firm, the other members of the family may become lazy and inactive. Economics 101: Principles of Microeconomics Final Free Practice Test Instructions. Father or the other senior family member manages the business and is called Karta or Manager; other members have no right of participation in the management. For managing the units efficiently, there is need to run them on business principles and further they should be given a large measure of autonomy in the day-to-day administration. The expansion of output beyond the optimum level would lead to diseconomies of production. Examples of non-durable goods are sweets, bread, milk, a bottle of Coca-Cola, photoflash bulb, etc. The industry demand schedule is a useful guide for studying the demand for a company’s products. Some of the important problems of the public sector enterprises stated above have been analyzed here and if these problems could be tackled, certainly we can expect a much higher rate of return on the investment in the public undertakings. Ans. Economists also are not unanimous in their opinion regarding the pricing policy of public enterprises. This is, however, not possible. ii. 9. Helpful? Damit Sie als Käufer mit Ihrem Cambridge economics test danach vollkommen zufrieden sind, hat unsere Redaktion auch einen großen Teil der ungeeigneten Angebote schon eliminiert. (b) economy is stagnant Book costs can be converted into out-of-pocket costs by selling the assets and having them on hire. Chapter 05 . Accordingly, he builds the plant by adjusting its scale of plant in the long run, the monopoly firm has been able to sell more at a lower price and earn larger profits than in the short-run. As “Karta” enjoys full freedom in conducting family business, he can take quick business decisions and also can run the business without interference by others. Choose the response that is correct or that best answers the question. Answers in a pinch from experts and … This practice test is for reviewing on your economics knowledge. How does Managerial Economics Differ from Economics? Controllable and Non-Controllable Costs: The concept of responsibility accounting leads directly to the classification of cost as controllable. In a Joint Hindu Family business, every co-partner enjoys equal share in the family business but the share of each member may fluctuate; it increases with the death of an existing co-partner and diereses with the birth of a new one. This is exemplified in Table 3.1 up to 11 units of output. 4.15, AR is the demand curve facing the pure monopolist. It implies that each acts autonomously so that the MCA curve is both the marginal cost curve and the supply curve. For instance, the commissioning of the Tomboy project delayed by 3 years, Barony Refinery by 2 years and Antibiotic Factory at Hardware by 1 year. Average cost is the total cost divided by the total quantity produced. Ans. (b) Second Five Year Plan Historical cost means the cost of a plant at a price originally paid for it. Q. (d) an Autonomous Corporation, 6. (b) Indira Gandhi Disclaimer Copyright, Share Your Knowledge Welcome to EconomicsDiscussion.net! All these questions have been asked in previous year. In the second case the monopolist is in short-run equilibrium where he is maximizing his profits. 9. It has already shown good results. While formulating a price policy for public enterprises, the administrators have to bear in mind many complex considerations such as generation of surplus for reinvestment, nature of demand for the products, purchasing power of consumers, policy of the State, attainment of the optimum level of production, competition from private enterprise and from foreign producers, availability of substitutes, etc. ( E00196464 ) ‘Inter alia’ it implies that the monopolist cannot influence the price-output policies of other firms. The family business is included in heritable property and is thus the subject of co-partenary interest. Perfect competition is often distinguished from pure competition, but they differ only in degree. The government has already established a holding company, Steel Authority of India Ltd. (SAIL), to administer the steel units in the public sector. Indeterminacy does not imply that there is no equilibrium position and no trade takes place. Below you will find the IB Economics exam tips which will be useful during your final and mock exams. According to Chamberlin, pure competition means “competition unalloyed with monopoly elements,” whereas perfect competition involves “perfection in many other respects than in the absence of monopoly”. Before publishing your Articles on this site, please read the following pages: 1. 4. Further, there is absence of proper materials and inventory management and also budgetary and inventory controls. (b) Directive Principles of State policy It has, therefore, suggested that the membership of the board should be closed to the officials of the departments, members of parliament, and ministers. Check Economics New Course Grade 11-XI Question Paper 2076-2019 Sub Code: 126B NEB. The same as equilibrium supply B. We have also attached some more study material below. In this session today, we have come with more than 1500 questions and answers from the Economics section. Krishna Mennen Committee has suggested that the directors should be drawn from the ranks of the company and should consist of financial talent, technical skill, administrative talent, and representatives of labor. For example, at an output of 13 units, the total cost is Rs.624. Rewrite your notes. Suppose the demand for consumer goods expands. It is the net effect on costs that is important, not just the costs directly avoidable by the contraction. Ans. Railways usually make use of this distinction. A test can be removed by creating appropriate machinery for effective co-ordination the aim. Mcq questions quiz on Economics time for which they face the problem of over­capitalization one.: the concept of responsibility under consideration male adult members can become co-partners under certain circumstances first step forecasting! 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