Monthly Archives: February 2013

MECHANISMS TO SOLVE ECONOMIC PROBLEMS – I

Introduction: As has been seen already economic problem is universal in nature. Though over a period of time the pattern of consumption, human ideologies, social, political, economic & technological conditions have changed the crux of the economic problem has remained

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Posted in General Economics

Types of Government Budgets

Types of Government Budgets A Balanced Budget  A Balanced Budget is a situation in which estimated revenue of the government during the year is equal to its anticipated expenditure.  Government’s estimated revenue = Governments proposed expenditure.  For individuals and families

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Posted in Econleaks Answers

Psychological law of consumption

Psychological law of consumption The main purpose of every economic activity, be it production or exchange, is consumption. It is consumption that motivates man to produce. All the production activity would come to a standstill, if there is no consumption.

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Posted in Econleaks Answers

Privatisation – VI

Risks of Privatisation According to critics the policy of privatization suffers from the following drawbacks 1] No social justice Since private sector is profit-oriented it cannot ensure social justice. 2] Poor performance Many private sector units in India are performing

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Posted in Indian Economy

Privatisation – V

Advantages of Privatisation The basic economic argument given for privatization is that governments have few incentives to ensure that the enterprises they own are well run. One problem is the lack of comparison in state monopolies. It is difficult to

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Posted in Indian Economy

Privatisation – IV

Measures taken for Privatisation 1] Dereservation policy The public sector entering new areas of industrial and technical competence, a number of problems like insufficient growth in productivity, poor project management, over-manning, inefficiency etc. The result is that many of the

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Posted in Indian Economy

Privatisation – III

Privatisation in India In the Industrial policy resolution of 1948 about 17 strategic and important industries were reserved for the public sector. From 1956 onwards government kept increasing the public sector hence the growth of public sector was fast. This

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Posted in Indian Economy

Privatisation – II

Definition of Privatisation Etymology The Economist magazine introduced the term in the 1930s in covering Nazi German economic policy. History The history of privatization dates from Ancient Greece, when governments contracted out almost everything to the private sector. In the

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Posted in Indian Economy

Privatisation – I

Meaning of Privatisation The concept of privatization is used in a narrow as well as broader sense. In a narrow sense privatization means transfer of ownership from public sector [government owned enterprises] to private sector, where it is privately owned

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Posted in Indian Economy