Economics Questions and Answers

Examples of transfer payments include welfare, financial aid, social security, and government making subsidies for certain businesses.

External economies of scale imply that as the size of an industry grows larger or more clustered, the average costs of doing business within the industry fall. This may occur due to increased specialization or training of workers, faster innovation or shared supplier relationships.

Following are the types of external economies of scale

1. Transportation and Communication
2. Skilled Labour
3. Facility of Workshop
4. Helping Industry
5. Research and Experiment
6. Banking Facility

Consumers cooperative society is an autonomous association of consumers united voluntarily to meet their common needs and aspirations. The cooperative society purchases in bulk directly from the producers which  avails them discounts and in return, sells in small lots to their members, thereby eliminating the middlemen (both the wholesaler and retailer)

Subsistence agriculture occurs when farmers grow food crops to feed themselves and their families. In subsistence agriculture, farm output is targeted to survival and is mostly for local requirements with little or no surplus trade. The typical subsistence farm has a range of crops and animals needed by the family to feed and clothe themselves during the year.

A high population means more problems with the distribution of wealth and resources. Problems with food security as pressure on the land due to larger population Increases. Increased pressure on the forest covered area which leads to deforestation. This wll affect the living standard of people with many scampering for the limited available resources