Which of the following is NOT an internal dis-economy of scales?
Easy management and less administrative cost
Large firm suffers from bureaucracy or red tapism
Less personal relationship between management and employees
Motivation may be lacking in the large firm
Slow response to changes
Correct answer is A
No explanation has been provided for this answer.
Using functional relationship in economics QX = f (px, po, y, T); po stand for
Level of income of the consumer
Price of x
Price of other commodities
Production function of x
Price index
Correct answer is C
No explanation has been provided for this answer.
Which of the following is NOT a function of taxation?
Make few people rich in the country
Raise revenue for the government
Redistribution of income
Reduces production and consumption of harmful goods
Used as anti-inflationary device
Correct answer is D
No explanation has been provided for this answer.
Directing market specialist to fix prices
Interplay of either demand or supply
Producers are prices givers
Regulating the price system by the government
The use of market forces
Correct answer is A
No explanation has been provided for this answer.
Which of the following is a motive for holding money?
Celebration
Daily purchases
Election campaign
Payment of taxes
Correct answer is B
In his publication on The General Theory of Employment, Interest, & Money, Keynes outlined three reasons, or motives, for holding money or cash: Transaction Motive: to pay for goods or services. It is useful for conducting everyday transactions or purchases. Precautionary Motive: it's a relatively safe investment.