Question

HEYYY (10 points)

10th class
Here is the question :

"Price rise is beneficial as well as hindrance in economic development "
(5 mark)

DON'T ANSWER IF YOU DON'T KNOW.
Don't copy from google. ​

Answer 1

A) price rice is beneficial to the economical development-
•increase in the prices of the manufactured good means increase in the profit of the businessman
•the profit provides the equal capital required for a new Ventures new production units create more employment
•they offer the higher wages and a better service condition to the workers.
•better which is means increase in purchasing power people spend more money to improve the standard of the living the price rise give the momentum to the industrialisation and industrialization serves as engine to the economic development
B) residence is the hindrance in the economic development.
•unrestrained price rise is called hyper inflation it is the hindrance to the economic development
•it result in the fall in the value of the money and the purchasing power
•it reduces the Savings and adversely affect capital formation
•high volatility in economic discourage the Businessman for launching a new product
•the Businessman prefer the production of the luxury goods and neglect production of the essential goods to earn more profit
•the scarcity of the essential goods lead to the hoarding and a black Marketing
•the economical loses its Momentum due to the chaos created of hyperinflation does the price rise is the hindrance in the economic development