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Balance of Payments
Perhaps the most immediate reason for bringing in protection is a balance of payment deficit. If a country had a persistent deficit in its balance of payments, it is unlikely to be able to finance these deficits from its limited reserves. If therefore becomes necessary for it adopt some form of restriction on imports (e.g. tariffs, quotas, foreign exchange restrictions) or some means of boosting its exports (e.g. export subsidies).
Q. Causes for diseconomies of scale? The most significant cause for diseconomies of scale is the diminishing returns to management. As the output grows beyond certain level the
Functions of the Budget The budget fulfils three main functions: To raise revenue to meet government expenditure The government of a country provides certain se
Objectives of IMF To achieve these objectives, the following conditions would have to be fulfilled: - i. Countries should not impose restrictions in their trade
Types of isoquant
what is the goal of firm
Consider an industry with a sole producer, a monopolist. The latter faces cost function C(Q)= Q/2 and aggregate (inverse) demand P(Q)=1 - Q (zero for Q> 1). Illustrate all your ans
price output determination under monopoly explain
Income Elasticity of different consumer goods Commodities Coefficient of income elasticity Impact on expenditure Necessities
Occurrence of Stagflation Two possible theoretical explanations can be given for the occurrence of stagflation almost all over the world. The first explanation follows directly
Question 1: (a) Describe the argument that market entry erodes profits in the long run. (b) Give some reasons and discuss possible strategies used for profits to persist eve
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