Explanation

• The central bank’s main goal is to maintain price stability.
• It controls inflation and deflation in the economy.
• Monetary policy regulates money supply and interest rates.
• Stable prices ensure economic growth and stability.

Last verified on 24-04-2026

Explanation

• Monopoly is a market with only one seller.
• The firm produces a product with no close substitutes.
• It has full control over price (price maker).
• Entry of new firms is restricted or blocked.

Last verified on 24-04-2026

Explanation

• In perfect competition, a firm maximizes profit where MC = MR.
• This point occurs in the second stage of production.
• In this stage, Marginal Product (MP) is diminishing but positive.
• So, firms always operate where MP is decreasing.

Last verified on 24-04-2026

Explanation

Government spending is a tool of fiscal policy.

Here is tye tools of Fiscal Policy:

1. Government Spending
2. Taxation
3. Transfer Payments
4. Fiscal Expansion
5. Fiscal Contraction

Last verified on 24-04-2026

Explanation

• Statistics is the branch of science that deals with data.
• It includes collecting, organizing, presenting, analyzing, and interpreting data.
• Raw data is first collected and arranged in a meaningful form.
• Then it is interpreted to draw conclusions.
• So, statistics involves both collection/organization and interpretation/presentation.

Last verified on 23-04-2026

Explanation

• In a mixed economy, income is distributed through both market forces and government policies.
• Factor prices (wages, rent, interest, profit) are determined by demand and supply in markets.
• At the same time, tax laws also affect how income is redistributed in society.
• So, both market pricing and government intervention play a role.

Last verified on 23-04-2026

Explanation

• Tuition fee is the payment made by students for receiving education services.
• It is charged directly in exchange for a specific service.
• Such payments are called user charges in public finance.
• It is not a tax because it is linked to direct service consumption.
• So, tuition fee is a user charge.

Last verified on 23-04-2026

Explanation

• Demand for a good is influenced by several factors such as income, tastes, and expectations.
• These factors shift the entire demand curve left or right.
• However, the price of the good itself does not shift the demand curve.
• Instead, it causes movement along the demand curve.
• So, it is not a determinant that shifts the curve.

Last verified on 23-04-2026

Explanation

• Sociologists have different views about how societies change.
• Some believe society develops in a linear way, while others see cycles.
• The idea that society has no real development but only ups and downs refers to cyclical change.
• This view was presented by Pitirim Sorokin.
• He explained that societies move in cycles of growth and decline.

Last verified on 23-04-2026

Explanation

• The Village Agriculture and Development (VAD) program was launched to improve rural economy in 1952.
• It focused on increasing agricultural productivity and village development.
• Such programs were introduced in the early years after independence in South Asia.
• The aim was to modernize farming and improve rural living standards.

Last verified on 23-04-2026