Economic Principles

Scale of business determines the type of industry or size of the industry, choice of business activity, etc.

Micro environmental factors or internal factors close to a business have a direct impact on its strategy.

Introduction is the Stage 1 of product life cycle. Stage 1 is where the product is launched. A product launch is always risky. You never know how the market will receive the product. Characteristics of introductory stages of product life cycle are

a. Higher investment and lesser profits

b. Minimal Competition

c. Company tries to induce acceptance and gains initial distribution

d. Company needs promotions targeted towards customers to increase awareness and demand for the product

e. Company needs promotions targeted towards channel to increase confidence in the product  

Section 106 of the Transfer of Property Act 1882 deals with the duration of leases and states that in the absence of a contract, or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable on the part of either lessor or lessee, by six month notice and a lease of immovable property for any other purpose shall be deemed to be lease from month to month, terminable, on the part of either lessor or lessee by 15 day notice.

This is the correct answer choice as transport is not required for the process of production.

This question references 'the above' without context, making it ambiguous. Based on adjacent questions about product modification, functional changes, quality changes, and environmental impact changes are all ways to modify a product, while price changes are a separate marketing strategy.

AGMARK is a certification mark used in India to assure the quality and grade of agricultural products. It stands for 'Agricultural Mark' and is governed by the Directorate of Marketing and Inspection. The mark guarantees that products meet specific standards for size, color, and quality.

Jean-Baptiste Say, a French economist, formulated the famous principle 'Supply creates its own demand' known as Say's Law. This classical economic theory states that the act of producing goods generates income equivalent to the value of the production, thereby creating demand for other goods in the economy.

This quote appears in economic literature discussing the role of human agency in development. While Adam Smith emphasized human effort in wealth creation ('The Wealth of Nations'), this specific quote about development being the result of human efforts is attributed to him in the context of classical development thought. However, attribution may vary across sources.

The correct answer is 'intensive'. 'Labor intensive' is a standard economic term describing an industry that requires a large amount of labor relative to capital. Textile manufacturing traditionally requires many workers, making it labor-intensive. 'Involved' means complicated, 'indicative' means showing, and 'incisive' means sharp or penetrating - none fit the economic context.

Kolosovasky (misspelled as Kovosovasky) was a Soviet geographer who classified economic regions. The production cycle basis refers to organizing regions around production processes and resource utilization patterns.

Kolosovasky (misspelled) proposed production cycles for regional resource classification. For energy resources and special raw materials, 8 production cycles were identified to characterize the complete production process from extraction to utilization.

In national income accounting, imputed rent of owner-occupied dwellings is treated as if the owner-tenant pays rent to himself. This imputed rent is included in final consumption expenditure because it represents the value of housing services consumed by households. Capital formation refers to investment in physical assets, intermediate consumption is used up in production, and consumer durables are tangible goods - none of these apply to imputed rent.

Agricultural supply is generally inelastic because production takes time due to biological cycles, seasonal patterns, and fixed factors like land. Farmers cannot quickly increase output in response to price changes. Once crops are planted, supply is largely fixed for that season.