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Ask QuestionPosted by Kritika Gupta 7 years ago
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Posted by Sher Afgan Khan 7 years ago
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Gaurav Seth 7 years ago
The following points highlight the difference between collusive oligopoly and non-collusive oligopoly.
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Collusive Oligopoly |
Non-collusive Oligopoly |
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Under this form of oligopoly, firms might decide to collude together and not to compete with each other. |
In this form of oligopoly, firms do not collude and instead compete with each other. |
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Under collusive oligopoly, the firms would behave as a single monopoly and aim at maximising their collective profits rather than their individual profits. |
Under non-collusive oligopoly, each firm aims at maximising its own profits and decides how much quantity to produce assuming that the other firms would not change their quantity supplied. |
Posted by Khushi Gusain 7 years ago
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Posted by Neha Pant 7 years ago
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Pragya Tyagi 7 years ago
Gaurav Seth 7 years ago
Money multiplier measures the amount of money that the banks are able to create in the form of deposits with every unit of money, it keeps in reserves.
It is calculated as:
Money Multiplier = 1/Legal Reserve Ratio
Pragya Tyagi 7 years ago
Posted by Sam Routiya 5 years, 8 months ago
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Parth Jain 7 years ago
Posted by Priyesh Ranjan 7 years ago
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Pragya Tyagi 7 years ago
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Lav Badaya 7 years ago
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Sher Afgan Khan 7 years ago
Cbse Student 7 years ago
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Gyaninder Brar 7 years ago
Posted by Khushi Jain 7 years ago
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Tushar Chandak 7 years ago
Yogita Ingle 7 years ago
The consumption curve will not start at the origin because the consumers level of consumption has a minimum level of consumption and so long as the level o f income is at minimum or at zero hence the reason why the consumption curve will not start at the origin. Some Amount of goods or services are automatically consumed by each and every individual.
Posted by Tushar Chandak 7 years ago
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Yogita Ingle 7 years ago
Positive Economics is the methodology of economic analysis which can be broadly classified into two categories. One attempts to describe the real condition and the other looks at the outcome of the activity and gives value judgement. The one which describes the condition or what is happening without giving value judgement is called positive economics. But, the study of the final output and determining they are good or bad is called normative science.
A normative science is that which studies the things 'as they should be'. Instead of asking 'what is' the question asked in normative economics is 'what should be ' or 'what ought to be'. The economics which uses value judgement is called normative economics.
Posted by Akash Singh 7 years ago
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Sukhdeep Singh 7 years ago
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Khushi Jain 7 years ago
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Posted by Cbse Student 7 years ago
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Yogita Ingle 7 years ago
The law of supply states that other things being equal, the supply of a commodity extends with a rise in price and contracts with a fall in price. There are however a few exceptions to the law of supply.
1. Exceptions of a fall in price : If the firms anticipate that the price of the product will fall further in future, in order to clear their stocks they may dispose it off at a price that is even lower than the current market price.
2. Sellers who are in need of cash: If the seller is in need of hard cash, he may sell his product at a price which may even be below the market price.
3. When leaving the industry : If the firms want to shut down or close down their business, they may sell their products at a price below their average cost of production.
4. Agricultural output : In agricultural production, natural and seasonal factors play a dominant role. Due to the influence of these constraints supply may not be responsive to price changes.
Posted by Madan Mohan Sharma 7 years ago
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Yogita Ingle 7 years ago
Based on payment, costs are classified into two categories; they are Explicit Costs and Implicit Costs. Explicit Cost is the cost which is actually incurred by the organization, during production. On the other hand, Implicit Cost, are just opposite to the explicit cost, as the organization does not directly incur them, but they are implied in nature which does not involve a cash payment. The former is an out of pocket cost, while the latter is an opportunity cost. Explicit Cost refers to the one paid to the factors outside the firm. Conversely, Implicit Cost are the one that arise from using the asset rather than renting it out.
Posted by Chayan Maloo 7 years ago
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Umesh Kumar 7 years ago
Posted by Rajesh Gope 7 years ago
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Yogita Ingle 7 years ago
(i) Debt trap. Fiscal deficit, i.e., borrowing creates problems of not only
(a) repayment of loans but also of (b) payment of interest. As the government borrowing increases, its liability in future to repay loans along with interest thereon also increases. Payment of interest increases revenue expenditure leading to a higher revenue deficit. Increased revenue deficit may further lead to more borrowing and more interest payment. Ultimately government may be compelled to borrow to finance even interest payment leading to emergence of a vicious circle and debt trap.
(ii) Wasteful expenditure. High fiscal deficit generally leads to wasteful and unnecessary expenditure by the government. Therefore, fiscal deficit should be kept as low as possible.
(iii) Inflationary pressure. As government borrows mainly from RBI which meets this demand by printing of more currency-notes (called deficit financing), it results in circulation of more money. This may cause inflationary pressure in the economy.
(iv) Retards future growth. The entire amount of fiscal deficit, i.e., whole borrowed amount is not available for growth and development of economy because a part of it is used for interest payment. Only primary deficit (fiscal deficit - interest payment) is available for financing expenditure. In fact, borrowing is financial burden on future generation to pay loan and interest amount which retards growth of economy.
(v) Increases foreign dependence. Government also borrows from foreign countries. This increases dependence on foreign countries which often lead to economic and political interference.
Posted by Madhulika 7 years ago
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Yogita Ingle 7 years ago
When the domestic currency appreciates, demand for imports by the native residents also increases. This is because appreciation of domestic currency implies depreciation of foreign currency. When domestic currency appreciates, imports become cheaper and there by the demand for import increases.
For example, a currency appreciation (fall in the exchange rate) from say, $1= Rs 40 to $1= Rs 38 implies that the goods from abroad become cheaper (that is, it now cost Rs 38 to purchase a commodity worth $1 instead of Rs 40 earlier). This would result in a rise in the demand for the imports.
Babita Garg 7 years ago
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Riya Jain 7 years ago
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