Section 80 TTA is a section which is categorised under chapter VI which includ only savings interest subject to maximum limit Rs. 10000.
2. What is price ceiling and price floor?
price ceiling: a legal maximum price of any good or service below equilibrium point.price ceiling states that sellers will not charge price above this level.e,g rent control (beneficial for buyers)
price floor: is legal minimum price above the equilibrium point set by government ,which states that buyers will not pay below this level (beneficial for sellers)
A Retention bonus is an incentive paid to a key employee to retain them through a critical business cycle. This could be a transitional period (such as mergers and acquisitions) to ensure productivity or to meet a critical milestone. It has proven to be a very good tool in persuading employees to stay.
4. What is explanatory research?
Explanatory research is research conducted in order to explain any behavior in the market. It could be done through using questionnaires, group discussions, interviews, random sampling, etc.
5. What is causing the rise in the price of oil?
The rise in the price of oil can be traced to a simple factor, but there are several other contributing factors.
The simplest explanation is that the demand for oil is greater than the current production. When demand exceeds supply, price will increase, as people are willing to pay more to ensure that they get their scarce resource (oil in this case).
Depending on your political views and knowledge of the situation, you may also believe that the production of oil is much lower than capacity because certain middle-eastern countries know that America depends on oil imports more than other countries. An increase in oil prices will lead to a slightly weaker US economy.
6. Why marketers are interested in discretionary income?
Because discretionary Income = the money people have left over once they have paid for all of their basic requirements (Food, Clothing, Shelter).
You could also call it Disposable Income because you can spend on whatever you want.
If people do not have very much discretionary income then they cannot buy all kinds of useless stuff that marketers are trying to sell them.
This would limit the potential demand for a good or service.
Consumer Demand is how much of something that consumers are wanting. A company needs to know the consumer demand so they know how much of a product to make.
It assigns costs based on the price elasticity of demand. Yet higher the elasticity (elastic), the lower the charge of fixed costs when allocated amongst products.
A tax on goods leaving or entering some place
10. How do you calculate variable unit costs and total annual costs?
Annual units sold, 1000. Raw materials annual cost 650. Building rent annual cost 9000. If sales volume increased to 6000 units and 8000 units, what is the total annual cost and unit cost for fixed variable?
Cost per unit of raw material=650/1000= 0.65
Fixed cost (Rent) =9000
Fixed cost per unit= 9000/1000= 9.00
If the sales volume increases to 6000 units, then total cost= 12900 and cost per unit = 2.150
Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000= 2.15
If the sales volume increases to 8000 units, then total cost= 14200 and cost per unit = 1.775
(0.65*8000) + 9000= 14200 / 8000 = 1.775
11. Which is a better measure of economic well-being real GDP or Nominal GDP?
Well real GDP takes into account the inflation rate and thus is more accurate at recording the actual increase in production activities. Therefore, Real GDP is better.
12. How do you define a control in economics?
A control in economics means a steady profit rate that is increasing. Therefore, after one year you could have £1mill profit then the next year £3mill profit etc.
13. What is the Service sectors percentage in Indian GDP?
Services industry contributes 55.5% to Indian GDP.
14. What is trickle down economics?
A derogatory term applied to Reaganomics, or supply-side economics, trickle-down economics is the theory that tax cuts for the wealthy merely "trickled down" to the bottom groups and that the rich benefited at the expense of the economy. Similar criticisms were raised about the supply-side tax cuts enacted by Treasury Secretary Andrew Mellon in 1921 but not for those made by John Kennedy in the 1960s. Supply-side cuts involve cutting taxes across the board but most dramatically for those in the top tax brackets. The rationale was that those who paid the most taxes would then be able to reinvest their tax "savings." Thus, supporters have countered the phrase "trickle-down" with the one coined by John Kennedy: "a rising tide lifts all boats."
15. What does it mean when a rupee appreciate?
I think the answer to this question lies in the reasons, which are contributing to the rise and fall of a price of any commodity. India has now good amount of dollars and as such, demand of dollars has come down comparatively.
16. What perfect competitive market and pure monopoly market have in common?
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
The price level refers to the monetary value of a good or service.
18. Why does an indifference curve never meet?
No indifference curve can intersect because all points on indifference curve are ranked equally preferred and ranked or less more preferred than every other point on the curve.
19. How is education an investment in human capital?
Well, the idea of humans as capital means that humans have a certain worth to a company (or society). Education increases that worth, making individuals more able to contribute to a company (or to society). Therefore, investing in Education... in your employees, for instance, is worthwhile because then your employees increase their value to you, as an employer. In a general sense, society's investment in educational programs increases people's value to society in general.
20. What is inflation and how is it measured?
Inflation means an overall increase in the prices of goods and services. It is a decrease in the value of a currency. There are three types of measurement, Core Inflation, CPI, and WPI. Core Inflation is a measurement of non-volatile goods such as food and non-precious metals. It leaves out goods like oil because oil's price is subject to wild fluctuations. CPI is the most common measurement, using a market basket of goods and measuring their price from a point in the past (a CPI of 100 is arbitrarily the same price level for 1982-1984). Thus, the equation is (Price of most recent market basket/price of same market basket in 1982-1984) X 100. The 100 is to give us the number we normally see. WPI is Wholesale Price Index. It is a measure of wholesaler's prices and is generally considered a pre-cursor to what CPI will be (as it takes time for goods to read the consumer).
21. Is it true that government revenues are increased because of lower tax rates?
It is true to a point. The Laffer curve shows that revenues increase as the tax rates rise (0 tax rate = 0 revenue) up to a point, but the increase slows as the rate rises higher and at some point total revenue begins to decline. If your incremental tax rate is 1% and you can work 4 hours to make $100, you will get to keep $99 and most people would be willing to do this. You would probably will to work the extra hours if you were taxed 5 or 10%. However, if you were subject to an incremental rate of 99%, you would not work that long knowing the government was only going to let you keep $1. The "magic number" seems to be somewhere around 15-20%. If the rates are above this, people are not motivated to increase their earnings. Big corporations react the same way.
22. What is the incidence of tax?
Well tax incidence refers to who actually pays the tax.
Tax incidence can be divided into-
1. Formal incidence: the party liable to the tax
2. Informal incidence: party, who actually pays the tax
The tax incidence is decided by the elasticity of demand and supply for a good or service.
23. What is the difference between an economic luxury and an economic necessity?
An economic luxury is wasting land on pools huge garden, etc. An economic necessity is what you need a certain amount of space (houses) to make something very necessary (to live in)
24. What are financial centers?
Banks and brokerage firms are considered financial centers
It is called as Balance of payments - an economic term. (BOP) measures the payments that flow between any individual country and all other countries. It is used to summarize all international economic transactions for that country during a specific time, usually a year. The BOP is determined by the country's exports and imports of goods, services, and financial capital, as well as financial transfers. It reflects all payments and liabilities to foreigners (debits) and all payments and obligations received from foreigners (credits).
"Consumption" is an old name for tuberculosis (TB) that describes how the illness wastes away or consumes its victims. TB is "an ancient enemy" that has plagued humankind for more than five thousand years.
It can also mean to "consume", consumption of food or resources.
27. What is meaning of market economy?
The meaning of a market economy is in which the decision and production are made. The consumption of goods services are based on voluntary exchange in markets.
28. What is pricing of Factors of Production?
Whenever we have touched on the pricing of productive factors, we have signified the prices of their unit services, i.e., their rents. In order to set aside consideration of the pricing of the factors as "wholes," as embodiments of a series of future unit services, we have been assuming that no businessmen purchase factors (whether land, labor, or capital goods) outright, but only unit services of these factors. This assumption will be continued for the time being. Later on, we shall drop this restrictive assumption and consider the pricing of "whole factors."
Briefly, the price of anything is based on comparative advantage. If Adam produces clocks better and cheaper than Bill, all clock production should go to Adam.
30. How would you differentiate between strike labor dispute and labor unrest?
Unrest is unexcused walkouts or absences or you have unresolved issues that may lead to a strike. Labor strike is just that. Workers walk out on jobs and do not return until a new contract is negotiated and approved by membership
31. What is Collateral management?
Collateral Management is a function to manage collateral effectively. It provides interface to enter collateral data, and it has a master data of collateral descriptions and types. It maintains customer, collateral, and credit account relationships so the amount of idle collateral can be determined. It is usually packaged in an application or part of the core-banking application.
Packets per second (pps) are a measure of throughput for network devices such as bridges, routers, and switches. It is a reliable measurement only if all packet sizes are the same. Vendors will often rate their equipment based on pps, but make sure comparisons are made using the same packet sizes.
33. What is an opportunity cost?
Opportunity cost is cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action. Concept of opportunity cost is central to economics because it reminds us that everyday we each have choices to make and for each choice, that we make there is a second best option that we forego{that we pass up}
34. What is full employment GDP?
The value of total output produced at full employment.
35. What is the role of Indian government in Indian economy?
Keynesian (John Keynes) economics is all about using monetary and fiscal (Government) policies to help direct the market towards equilibrium. Keynes did not believe that the market was self-correcting, and thus required government involvement. Keynesian economics also uses the view that prices are constant in the short term and only adjust in the long term (sticky price theorem). This delay in price adjustment pulls the market away from equilibrium.
