ENTREPRENEURS
by :
DR. T.K. JAIN
AFTERSCHO☺OL
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
FOR – PGPSE PARTICIPANTS
mobile : 91+9414430763
5 DECEMBER 09 www.afterschool.tk 1
What is an economic system ?
It is a system of government – where the overall economic
policies of the government are synchronised around
certain philosophy :
economic system is based on following ideas :
1. the extent of government intervention / regulation
2. extent of private sector participation and freedom to
private sector
3. level of involvement of private sector and public sector
in the economy
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What are the features of
capitalism?
The USA is an ideal model of capitalism : you
can see it has following characteristics :
1. laissez faire – almost complete freedom to
private sector
2. very high inequality between rich and poor –
due to market forces
3. market forces determine production and
condumption – producers produce what
consumers demand
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What is consumer sovereignity ?
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What is aggregative economics?
The meaning of aggregate is sum of different
parts.
Thus aggregative economics is economics
which study the phenomenon at the aggregate
level. It is also called Macro-economics. Here
we study the collectives like national income
etc. As against this micro economics studies
only individual firm and studies variables like
pricing by firm
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Is economics a normative
science ?
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What is utility ?
Answer : Ricardo
(Adam Smith only focussed on creation of
wealth).
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Who said economics is study of
welfare aspects ?
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Who said the economics is not
study of just wealth but study of
well-being of society
Marshall
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What is law of supply ?
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What is elasticity of supply ?
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What is law of equi-marginal
utility ?
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What is the law regarding
constant returns ?
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What are external economies ?
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Why does average variable cost curve
have a U-shape both in the short run
and long run ?
Variable cost = cost related to variable factors of
production like labour
According to law of variable proportion, with a
given plant, returns to variable factors pass
through three phases of increasing, constant and
diminishing returns. Accordingly, AVC curve is a
U-shaped one. In the initial stages, it slopes
downwards with an increase in output. Thus we
can have an ideal point – where the cost is
minimum.
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Differentiate between returns to scale
and returns to a variable factor
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What are the concepts of total revenue,
average revenue and marginal revenue
of a firm.
Suppose you sell 1 unit for Rs. 12, your total revenue
(TR), Marginal revenue (MR), and average revenue
(AR) are all same – 12. Now suppose you sell one more
unit in Rs. 20, your TR is now 32, AR = (32/2)= 16,
MR = 20. Now suppose you sell 3rd unit in Rs. 8. What
is your TR, MR, AR
TR=40, AR=13.33, MR= 8
TR curve is always going up with quantity, AR & MR
curve are constant in perfect market, but falling in
imperfect market
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What are the salient features of a
socialist economy
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What do you understand by market
mechanism
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WHAT IS DIFFERENCE
BETWEEN MICRO AND
MACRO ECONOMICS ?
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What is the difference between
static and dynamic economics ?
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What is cobweb theory?
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Who says that the rules of
economics are not firm as the
rules of gravitation?
Marshall
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What is the basic model of
national income?
Y = C+I+G+ (X-M)
Y = National Income
C = consumption
I = Investment
G=Government expenditure
x = Export
M = Import
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At consumption of 35 units, your satisfaction
is 900 units, at consumption of 36 units, your
satisfaction is 800 units, is it possible
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You derive equal satisfaction by eating 2
Kachori + 1 Malpua or alternatively : 2
Rosgulla + 2 Bikaneri Samosa. What
economic theory is applicable here?
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WHO TALKED ABOUT
CONSUMER'S RENT IN 1879?
Marshall
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Who talked about indifference
curve for the first time?
Hickks
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What is indifference curve ?
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What is consumer surplus?
From 1st unit, Pawan gets satisfaction of 10
unit, from second unit : 6 units of satisfaction
from 3rd unit he gets satisfaction of 2 units, but
acually pays equal to 2 units for each. Thus his
surplus is :
(10-2) + (6-2) + (2-2) = 12 units.
Thus Pawan has positive consumer surplus
(difference between what he gets and what he
pays).
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Who says that money has static
marginal utility ?
Marshall
but Hickks says that money's marginal utility is
also changing
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What are the exceptions of law of
demand?
As per law of demand – demand has inverse
relation with price. Demand curve is convex to
origin. .
Exceptions are :
1. emergency 2. expectation of further rise /
fall in price 3.Inferior goods (Giffin goods) 4.
High priced / luxury goods 5. Conspicuous
goods 6. Necessities 7. Ignorance
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What are Giffin goods?
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What is elasticity in demand ?
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What factors influence elasticity
of demand ?
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Who says : Economics is the
study of nature and causes of
wealth of nations
ADAM SMITH
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WHO SAYS : ECONOMICS IS
THE SCIENCE WHICH
STUDIES WEALTH
J.B. SAY
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WHO SAYS : “ECONOMIC
WELFARE IS THE SUBJECT
OF STUDY OF ECONOMICS.
ECONOMIC WELFARE IS
THAT PART OF SOCIAL
WELFARE THAT CAN BE
BROUGHT DIRECTLY OR
INDIRECTLY INTO RELATION
WITH THE MEASURING ROD
OF MONEY
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SOLUTION
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Who says : economics is the study
of human behaviour as a
relationship between ends and
scarce means which have alternate
uses.
Robinson
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What are assumptions of
consumer's surplus