What will likely be the impact of large scale outflow of foreign capital on production Possibility Curve of the economy and why ?
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Distinguish between large scale and small scale industries. Give two examples each.
Large Scale Industries : (i) Manufacture large quantities of finished goods. (ii) The quantity of raw material and capital investment is large. (iii) Example: Iron and steel industry, cotton textile industry. Small Scale Industries...
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Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment
(b) Capital Account comprises of Foreign loans, Foreign Direct Investment and Portfolio Investment. Capital Account is the net result of public and private international investments flowing in and out of...
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The government has started promoting foreign capital. What is its economic value in the context of Production Possibility Frontier?
It will increase the inflow of foreign capital. Its economic value is the rise in production potential due to increase in resources.
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The Government establishes a large number of institutes of science and technology. How will it affect the Production Possibility Frontier ?
By establishing a large number of institutes of science and technology, the PPC or Production Possibility Frontier of an economy will shift upwards as there are more skilled resources and technology...
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What is Likely to be the impact of "Make in India" appeal to the foreign investors by the prime Minister of India,
'Make in India' Programme is an invitation to foreign investors to install production units in India. This will raise resources in the country and enhance production potential of the country....
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Supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable Cost curve.
Yes, we do agree with the given statement that the supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable Cost curve,...
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Foreign Exchange Rate in India is on the rise recently. What impact is it likely to have on exports and how?
Rise in foreign exchange rate means that one unit of foreign currency is worth more rupees than earlier. So one unit of foreign currency can now buy more goods and...
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When Foreign Exchange Rate in a country is on the rise. What impact is it likely to have on imports and how?
When foreign exchange rate rises, it makes the countries imports costly. The importers have to pay a higher price in terms of domestic currency for the goods and services imported....
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Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
Increased Import duty on gold will make imports of gold costly. It will reduce demand for import of gold and consequently of foreign exchange. Supply of foreign exchange remaining unchanged...
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Foreign exchange rates have risen considerably in a country. What is its likely impact on imports of that country and why?
The demand and supply of foreign exchange is influenced by changes in exports and imports. If exports exceeds imports, demand for domestic currency increases so that rate of foreign exchange...
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