Question
In the question below, few statements are given
depicting an issue or a problem. You have to assume everything in the statements to be true even if they are at variance from commonly known facts, and on the basis of the information given in the statements, decide which of the suggested courses of action logically follow(s) for pursuing. The world is undergoing a transition from a fossil fuel-based economy to a clean energy-based economy. Coal mines in India, the third-largest coal producer in the world, are increasingly becoming unprofitable and are being shut down in an unplanned manner. About 50 percent of mines are closed and half of the remaining are unprofitable. These unplanned closures will impact not just the formal workforce but a greater number of informal workers who have been dependent on these mines for livelihoods. I. The government should frame and enforce strict guidelines for the safety of workers in coal mines. II. The government should direct thermal power plants owned by it to increase the purchase of domestic coal.Solution
The situation tells us how not only the formal workforce, but also the informal workforce face joblessness due to the closure of coal mines. II tells us how the government-owned power plants should purchase more domestic coal, which would increase demand for coal and prevent the abrupt closure of mines. Only II follows, which makes (b) the right answer.
If the firms under perfect competition have different costs, abnormal profits can be earned in the long run only by
In case of Giffens goods, price effect is
From the resource allocation point of view, perfect competition is preferable becauseÂ
Shifts in demand curve as shown in the figure below represents
A movement along a demand curve indicates that a different quantity is being demanded
This movement is due to
When the economist speaks of an increase in demand, he is usually referring to a ____________________
Elasticity of demand measures the
Pricing decision includes
Which one of the following is not the function of a managerial economist?
Elasticity of demand is based on which of the following factors?