Tag: major economic problems

Commodity service method also known as value added method refers to a method for calculating the national income of quoted price of a commodity in general where the amount of cost in each level of production is added to generate the total price of the commodity including the normal profit for the production unit. 

Corruption is a shape of dishonesty or illegal crime undertakes by a person or organization entrusted with a place of authority. The negative belongings of corruption it reduces foreign direct and domestic investments, increase inequality and poverty, raises the number of freeloaders in the economy, distorts and exploits public investments and reduces public revenues. 

There are many causes of corruption like the greed of money, higher levels of market and political monopolization, low levels of democracy, lows economic freedom.

The correct option is D.

The scarce resources of an economy have competing usages. In other words, every society has to decide on how to use its scarce resources. 

Dividend is the allocation of reward from a segment of the company's income and is paid to a class of its shareholders. Dividends are decided and managed by the company's board of directors, although they must be accepted by the shareholders from side to side their voting rights. 

Walter and Gordon not compulsory that shareholders favour current dividend and therefore a positive relation­ship exist between dividend and market value. The reason put following this argument is that investor is generally risk-averse and that they prefer current the dividend, attaching lesser importance to future divi­dends or capital gains.

The correct answer is D.

The Reserve Bank of India was established on 1st Apr,1935 Kolkata. 

Total income of four families $= 5000 * 4 = 20000$

Total income of three families $= 4000 + 7000 + 3000 = 14000$

Income of the fourth family $= 20000 – 14000 =  6000$

Evading taxation, that is, avoiding to give tax to the government is a corruption. For example, we can find the bribery results in a reduction in sales reported for taxes.

Production is a process of merging various material inputs and irrelevant inputs in order to make something for consumption. It is the action of creating output, a good or service which has the value and contribution to the beneficial of the individuals. Tiling of soil by friends, construction of canal by laborers, Painting a picture for sale are considered in the production of economics. 

A person who is not gainfully employed, that is, a person who is not paid in monetary terms or in kind in return of his work, is known as an unemployed person since he cannot contribute in the GDP of a country.