The following are Methods of measuring National Income of a country EXCEPT
Expenditure method
Consumption method
Input Method
Output Method
Correct answer is B
No explanation has been provided for this answer.
Government
labour union
Private and public enterprises
System of economy practised
Correct answer is D
Every society answers the three basic economic questions differently, in doing so, each confronts the same fundamental problems: resources allocation and scarcity. For every society, the answer to the three basic questions depend on what kind of economic system it uses. The term economic system refers to the way in which a society organize the production and distribution of goods and services.
Which of the following budgets will increase government expenditure?
Zero base budget
Surplus budget
Deficit budget
Balanced policy
Correct answer is C
A budget deficit is the annual shortfall between government spending and tax revenue. The deficit is the annual amount the government need to borrow to balance up the budget. When the government borrows, it offers to pay interest payment to those who the money was borrowed. The deficit is also funded by selling government bonds to private sector to do this, the government offers to pay an interest payment to those who buy the bonds. The interest rate attracts investors to lend the government money.
Which modal of the factor is inelastic?
Wages
Capital
Labour
Land
Correct answer is D
Land is defined in economics as a free gift of nature. Land does not only include the land surface of the earth but all other free gifts of nature or natural resources like forests, mineral resources, rivers, oceans, atmosphere, etc. unlike other factors of production, the supply of land is limited. In other words, land is a fixed factor of production, it is inelastic.
An inelastic product is defined as one where a change in price does not significantly impact demand for that product. This is because landowners can't shift land to a different market or reduce production. If the land is not on the market for development, it has no value. This means that in order for a good to be elastic, the production or use must change.
A firm owned and managed by a family is an example of ______?
Joint stock exchange
Cooperative society
Sole proprietorship
Partnership
Correct answer is D
A partnership may be defined as a type of business organization in which two to twenty persons agree legally to setup and manage a business outfit with the sole aim of making profit. The people involved in partnership agreement are called partners and they share the profit, losses and risk of
the business.
A family owned business is any business in which two or more family members are involved and the majority of ownership or control lies within a family.