Law of Return scale: Law of returns scale explains the Long-run input output relationship ie;long run production function in which all the factors of production are variable. It explains how output changes when all factors of production are changed in the same proportion. For e.g, If both the inputs are doubled ,the output may be […]
Continue ReadingAuditory Sensation: Auditory sensation is one of the important sensation for human beings as it provides us the pleasure of enjoying sound. The physical stimulus for auditory sensation is sound waves.Auditory sensation is the experience of sound on ear. Ear is the receptor of auditory sensation .Frequency and intensity of sound determines the nature of […]
Continue ReadingVisual Sensation: Visual sensation is the most important sensation for human beings as it supplies them with the greatest amount of information about the external world. The physical stimulus for visual sensation is light. Eye is the receptor of visual sensation .Visual sensation is the experience of light in the eye. Through eyes it is […]
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Continue ReadingRole of price mechanism in full utilization of productive resources in free enterprise economy Explain the role of “Price mechanism” in assuring proper allocation and full utilization of productive resources in free enterprise economy. Ans) Price mechanism refers to the process of price determination by the interaction between demand and supply forces without any external […]
Continue ReadingMicroeconomics- Business Decision making a)Explain the role of microeconomics in business decision making. Ans) The role of microeconomics in business decision making can be explained as under: 1) Optimal resource utilization: The productive resources are scarce in the economy and microeconomics tells how the productive resources are allocated in the production of various goods and […]
Continue ReadingCardinal Utility Approach Very Short Questions Define utility. Ans) Utility is defined as the wants satisfying capacity of a commodity .In other words,it is the satisfaction obtained from the consumption of commodity. What do you mean by cardinal utility approach? Ans) Cardinal Utility approach is the method of analyzing utility which believes that utility is […]
Continue ReadingVery short questions of Elasticity Define elasticity of demand. Ans) The elasticity of demand is the measure of responsiveness of demand for a commodity to the change in any of its determinants like price of the same commodity,price of the related commodity,income of the consumer,etc. What are the types of elasticity of demand? Ans)There are […]
Continue ReadingVery short questions,Demand and Supply What do you mean by demand? Ans) Demand means the quantity of goods and services which consumers would buy in a market at a given time and price.In order to change desire into demand ,it is essential that the consumer should have both willingness and ability to pay. Define Demand […]
Continue ReadingSome very short questions of Introduction to Microeconomics 1)Define an economic theory. Ans) An economic theory is defined as a model along with the specified and empirical economic variables, concepts and facts used to explain and predict the changes. 2).List out the elements of well defined economic theory. Ans) The elements of well defined economic […]
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