Economics Questions and Answers

The factor that may not promote industrial development is granting old firms tax exemptions.

Tax exemptions are a form of government subsidy that can be given to firms in order to promote economic development. However, they can also have the unintended consequence of discouraging innovation and efficiency.

This is because tax exemptions can make it easier for old firms to stay in business, even if they are not competitive. This can prevent new firms from entering the market, which can stifle innovation and economic growth.

The price level and the value of money are inversely related. The price level is the average price of goods and services in an economy. The value of money is the amount of goods and services that can be purchased with a unit of money.

When the price level increases, the value of money decreases. This is because the same amount of money can buy fewer goods and services. Conversely, when the price level decreases, the value of money increases. This is because the same amount of money can buy more goods and services.

The rate of growth of population is generally calculated using the formula: birth rate minus death rate plus net migration. This formula takes into account the components that contribute to changes in population size over a specific period of time.

GNP = NNP + Depreciation Allowance

In this case, the NNP is $50m and the depreciation allowance is $10m. Therefore, the GNP is:

GNP = $50m + $10m = $60m

The Malthusian theory of population is best illustrated when population increases much faster than food supply. This is because the Malthusian theory argues that population growth is exponential, while food supply growth is linear. This means that the population will eventually outgrow the food supply, leading to famine, disease, and war

Retailers are businesses that sell goods directly to consumers, whether through physical stores or online platforms. They offer a wide range of products from various manufacturers and wholesalers, making them easily accessible to consumers. Retailers create a convenient and engaging shopping experience, allowing consumers to browse, compare, and purchase goods in one location.

When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will increase. This is because the increase in demand will create a shortage at the current price. As a result, sellers will be able to raise prices, and the quantity traded will increase.

The equilibrium price will increase until the quantity demanded equals the quantity supplied. At this point, the market will be in equilibrium again.

The dependency ratio of a country is the children and aged who rely on the active population for support.

The dependency ratio is a measure of the number of people who are not of working age (children and the elderly) compared to the number of people who are of working age (15-64 years old). A high dependency ratio means that there are a lot of people who are not of working age, which can put a strain on the economy. A low dependency ratio means that there are a lot of people of working age, which can be a sign of a healthy economy.

A fall in the price of a normal commodity which has elastic demand will result in an increase in revenue. This is because elastic demand means that consumers are very responsive to changes in price. When the price falls, consumers will buy more of the commodity, which will increase the total revenue.

The cost of paying salaries of workers is an example of government's recurrent expenditure. Recurrent expenditure is a type of government spending that is necessary to keep the government running on a day-to-day basis. It includes costs such as salaries, benefits, and pensions for government employees, as well as the cost of operating government buildings and facilities.