Q.1 - Why do problems related to allocation of resources in an economy arise ? explain .
Q.2 - A lot of people died and many factories were destroyed in an earthquake. How will it affect the PPF of the economy ?
Q.3 - What do you understand by positive economic analysis and normative economic analysis ?
Q.4 - How in any one way can economy increase its productive capacity ?
Q.5 - Economic slow down in some parts of the world has adversely affected demand for Indian exports . What will be its effect on the PPF of India ?
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Answered by
3
if a lot of people have died and paper factories have destroyed then this well make the PPF to shift towards left as the economy is working on the PPC but due to decrease and resources due to natural calamities there will be decrease in the resources this will shift the PPC towards left there will not be under utilisation of resources there will be a shift in PPC this is the answer of second question
this is the answer of third question normative Economics is one which presents The suggestive facts in this the facts cannot be verified it presents that was should be and what ought to be the situation positive Economics is one which presents The actual facts are the facts can be verified easily as their truth it presents that what was what is and what will be the situation for example normative economics says that the population rate of India should not be more than 50% in a year and in positive economics we say that population growth in India is 15% every year so in first example it is suggesting that is should not be more than 50% and in second example it says that it is 15% this is the main difference
this is the answer of the 4th question the economy can provide employment to all the people it will improve the health of the people and can educate the people by doing this the government will make the people more efficient and more productive does as a result their production capacity will increased this will result in increase and productive capacity of the whole economy on the other hand it can also think of growth of resources or the invention of the new resources for
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this is the answer of third question normative Economics is one which presents The suggestive facts in this the facts cannot be verified it presents that was should be and what ought to be the situation positive Economics is one which presents The actual facts are the facts can be verified easily as their truth it presents that what was what is and what will be the situation for example normative economics says that the population rate of India should not be more than 50% in a year and in positive economics we say that population growth in India is 15% every year so in first example it is suggesting that is should not be more than 50% and in second example it says that it is 15% this is the main difference
this is the answer of the 4th question the economy can provide employment to all the people it will improve the health of the people and can educate the people by doing this the government will make the people more efficient and more productive does as a result their production capacity will increased this will result in increase and productive capacity of the whole economy on the other hand it can also think of growth of resources or the invention of the new resources for
it's helpful then please like my answer and say thank you
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The selfish interests in the hands of those inppower is on e of the factors that leads to problems in allocation of resources in our economy. The leaders wouuld want to alloicate the resources in the places of their own choice to benefit politically from tge move, this is the source of unequitable distribution of resources in our country economy.
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