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Inventory is a stock variable because it is measured at a point of time and change in inventory is a flow variable because it ts measured for a period of time.

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Sneha Manchanda 5 years, 6 months ago

Inventory is a stock variable and change in inventory is a flow variable because inventory refers to the stock of raw material, finished goods and semifinished goods and can be measure at a point of time and change in inventory refers to the difference between closing stock and opening stock and can only be measured over a period of time that is why it is a glow concept.

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Distinguish between final consumer goods and final producer goods?

Posted by Esumit Iepcha 5 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Sneha Manchanda 5 years, 6 months ago

Every good which is purchased by a consumer for the satisfaction of his wants are final consumer goods. Example is vegetables purchased by a household. And every good which is purchased by producers to use that particular good in the process of production and the only condition is that good should be of high value and has a long life span. Example machinery and plant, sewing machine purchased by a tailor , taxi purchased by a taxi driver.

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Esumit Iepcha 5 years, 6 months ago

I need answers

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"Economic reforms have reduced the role of public sector", comment

Posted by Tajinder Singh 5 years, 6 months ago

CBSE > Class 12 > Economics

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Criticise the economic reforms of India

Posted by Tajinder Singh 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

I suggest you to read last topic of 3rd chapter of ncert

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How was licensing policy misused by some of the industrial house

Posted by Tajinder Singh 4 years, 9 months ago

CBSE > Class 12 > Economics

2 answers

Shristi Bhadouria 4 years, 3 months ago

how was licensing policy misused by some of the industiral house

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Sakshi Tripathi 5 years, 2 months ago

how was the licensing policy misused by some industrial houses?

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All machines are not capital goods.explain

Posted by Robin Hood 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

Yes all machines are not capital goods because a machine purchased by a consumer always consider as consumer durable goods and tge same machine puchased by a producer will be consider as capital good. As you should know that capital goods are those goods which are puchased by producers to use them in the process of production and those goods are of high value and can be used for several years. But EVERY GOOD PURCHASED BY CONSUMER IS CONSUMER GOOD IT DOES NOT MATTER IT IS OF HIGH VALUE OR CAN BE USED FOR SEVERAL YEARS.

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Effects of coronavirus on indian economy project

Posted by Mansi Sharan 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Andro Tech Gamer 5 years, 6 months ago

You can take help from google

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does population growth always compound to poverty

Posted by Sweety Sah 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

Not always because when growth rate is equal to population growth then it doesn't compound poverty

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If the nominal GDP is 9% and GDP Deflator is 150 then what is the Real GDP?

Posted by Priyanshu Kumar 5 years, 6 months ago

CBSE > Class 12 > Economics

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There is a limit to money or credit creation by banks and this is determined by Central Bank of India RBI decides a certain percentage of _______ which every Bank must keep as reserve called _____ this is done to ensure that no bank is lending

Posted by Ojaswani Arora 5 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Ria Choudhary 5 years, 6 months ago

Demand deposits and next one is crr

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Sneha Manchanda 5 years, 6 months ago

LRR and second is SLR

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Since banks on interest from loans day make any bank would like to learn the maximum possible. But there is a limit to money of credit creation by bank and this is determined by _______

Posted by Ojaswani Arora 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

Did not understand ur quetion . Elaborate a bit.

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State giving reason whether the following statement is True or False: Higher the Legal Reserve Ratio (LRR) greater would be the money creation in the economy.

Posted by Ojaswani Arora 5 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Harsh Jain 5 years, 6 months ago

False because there is a indirect relation between LRR AND money multiplier

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Sneha Manchanda 5 years, 6 months ago

False because lower the reserve ratio greater would be the money creation in the economy . As suppose that lrr is 80% it means you have to maintain reserves of 80%of your total cash and you would only have 20% to lend in market . Now think of a situation opposite tothis 20% is lrr then you would have 80% cash in your hand to lend and chance to get more interest hence more money creation.

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Deposit creation by banks comes to an end when_________

Posted by Ojaswani Arora 5 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Ria Choudhary 5 years, 6 months ago

Excess reserves =0

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Yogita Ingle 5 years, 6 months ago

People deposit money in their respective bank accounts. As per the central bank guidelines, the commercial banks are required to maintain a portion of total deposits in form of cash reserves. With the help of the past experiences, the commercial banks know that not all the depositor will turn-up for withdrawal at the same day. Consequently, the commercial banks lends the remaining portion (left after maintaining cash reserves) of the total deposits to the general public in form of credit, loans and advances. It is the second portion of the total deposits that is responsible for the credit creation (credit money). The process of creation of credit money begins as soon as the commercial banks start the lending process. The amount of the credit money increases as the banks lend loans to more and more number of people in the economy. The deposit of money by the people in the banks and the subsequent lending of loans by the commercial banks is a never-ending process. It is due to this continuous process that the commercial banks are able to create credit money a multiple times of the initial deposits.
The process of credit creation can be better understood with the help of the following numerical example. For simplicity, let us assume that the entire commercial banking system is a single unit called 'banks'.

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Define the term land holding

Posted by Anshika Pandey 5 years, 6 months ago

CBSE > Class 12 > Economics

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Define change in stock

Posted by Abhi Raj 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

Change in stock refers to the difference between inventories at the end of the year and inventories at the beginning of the year.

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Diffrence between final and intermidiate goods

Posted by Robin Hood 5 years, 6 months ago

CBSE > Class 12 > Economics

2 answers

Abhilash Pathak 5 years, 6 months ago

Final goods used as a final consumption Intermediate goods used as a raw material

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Aman Kothari 5 years, 6 months ago

Final goods are those goods which have crossed the boundary line of production and are ready for use by their final users. Intermediate goods are those goods which are within the boundary line of production and not ready for use by their final users.

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What will be effect of Corona virus in Indian economy?

Posted by Anita Shrinjal 5 years, 6 months ago

CBSE > Class 12 > Economics

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What ws type of economy

Posted by Damanjeet Singh 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Mihir Verma 5 years, 6 months ago

Micro Macro

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How r u sir

Posted by Víñày Upàdhyāy 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Harshit Goyal 5 years, 6 months ago

Fine

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Difference between factor cost income and transfercost income

Posted by Sarvan Mishra 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

Factor income refers to the payments made by producers to the holders of factor services for rendering their services to the producers. For example land , labour, capital and entrepreneurship. Transfer income refers to the one sided income which in return there is no flow of goods and services in the economy.For example scholarship, old age pension etc.

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Calculate the following data 1.net domestic product at market price (NDPNP)

Posted by Anurag Shukla 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Sneha Manchanda 5 years, 6 months ago

Where is the data?

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When was planning initiated in India

Posted by Juhi Sharma 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Anita Yadav 5 years, 6 months ago

1950

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Why were reforms introduce in India

Posted by Ritika Sharma 5 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Yogita Ingle 5 years, 6 months ago

Economic reforms were introduced in the year 1991 in India to combat economic crisis. Economic Crisis of 1991 was a culminated outcome of the policy failure in the preceding years. It was in that year the Indian government was experiencing huge fiscal deficits, large balance of payment deficits, high inflation level and an acute fall in the foreign exchange reserves. Moreover, the gulf crisis of 1990-91 led to an acute rise in the prices of fuel which further pushed up the inflation level. Because of the combined effect of all these factors, economic reforms became inevitable and were the only way to move Indian economy out of this crisis.

The following are the factors that necessitated the need for the economic reforms.

1. Huge Fiscal Deficit: Throughout 1980s, fiscal deficit was getting worse due to huge non-development expenditures. As a result, gross fiscal deficit rose from 5.7% of GDP to 6.6% of GDP during 1980-81 to 1990-91. Subsequently, a major portion of this deficit was financed by borrowings (both from external and domestic source).

The increased borrowings resulted in increased public debt and mounting interest payment obligations. The domestic borrowings by government increased from 35% to 49.8% of GDP during 1980-81 to 1990-91. Moreover, the interest payments obligations accounted for 39.1% of total fiscal deficit. Consequently, India lost its financial worthiness in the international market and, fell in a debt trap. Thus, economic reforms were needed urgently.

2. Weak BOP Situation: BOP represents the excess of total amount of exports over total amount of imports. Due to lack of competitiveness of Indian products, India was not able to earn enough foreign exchange through exports to finance our imports. The current account deficit rose from 1.35% to 3.69% of GDP during 1980-81 to 1990-91. In order to finance this huge current account deficit, Indian government borrowed a huge amount from the international market. Consequently, the external debt increased from 12% to 23% of GDP during the same period. On the other hand, Indian exports were not potent enough to earn sufficient foreign exchange to repay these external debt obligations. This BOP crisis compelled the need for the economic reforms.

3. High level of Inflation: The high fiscal deficits forced the central government to monetise the fiscal deficits by borrowings from RBI. RBI printed new money that pushed up the inflation level, thereby, making the domestic goods more expensive. The rate of inflation rose from 6.7% p.a. to 10.3% p.a. during 1980s to 1990-91. In order to lower the inflation rate, government in 1991 had to opt for the economic reforms.

4. Sick PSUs: Public Sector Undertakings were assigned the prime role of industrialisation and removal of inequality of income and poverty. But the subsequent years witnessed the failure of PSUs to perform these roles efficiently and effectively. Instead of being a revenue generator for the central government, these became liability. The sick PSUs added an extra financial burden on the government’s budget.

Thus, because of all the above reasons existing concomitantly, the economic reforms became inevitable.

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calculate NNPmp by income method and expendature method

Posted by Om Mathur 5 years, 6 months ago

CBSE > Class 12 > Economics