Competition: Daily Test 1 Solutions

Grade 8: Daily test paper solution

Discuss whether perfect competition is always to be preferred to monopoly.

Grade 8 Economics

A company is making losses. Discuss what policies its might adopt.

Grade 8 Economics: Compare you work sheet with this sheet  and do self evaluation. 

Discuss Whether consumer will always benefits from the advertisements.

Grade 8 Economics: Compare your work on the practice sheet with this solution sheet. 

Topic 7.2: 1) Solutions March 16, 2014

Topic 7.2: 1 Best measures to control population

Generally it is said that the high population growth rate in the developing countries is a biggest drag on their development. 

1. Up to what extent do you agree that Government should take strong actions to control the rapid population rise in the country. Discuss.

Solution:  

Introduction: 

Rapid rise in the population of the country has become a big problem for some countries like India, China Indonesia, Pakistan, Bangladesh etc. Governments in these countries finding difficulties in allocating the scarce resources on one hand and on the other side the demand for the quality goods and services is rising rapidly resulting in a socio-economic problems in a country.   

Its important to control the rapid rise of population before the economic situations goes out of control. 

• Quick to control the population through rule and regulation like One child policy in China
• Its easy to achieve the optimum population level with force to create the right balance between the population and the resources
• Government regulations can manage the population growth more effectively and efficiently
• Rapid population rise is more influenced by high birth rate which due to certain social and religious reasons. So their are very less chances people themselves will take effective measure to control the population, so its important for the government to step in control the population rise.
• Rapid population rise is more influenced by individual or micro societies but the problem comes at the macro economic level. So government is at the better position to control these micro societies which may tilt the population structure and create life long social problems in the society.  

Governments interference in the decision making process of family may create many anomalies in the society and  should not adopt strong actions for family planning measures

• Family planning is strictly induction choice which much be left to individual family as its a right of family to decide its own size
• Forceful family planning may agitate the family and as a whole society and create social unrest in the civic society
• One child policy in China drastically influenced the labour force in China
• Force policies has encouraged the societies to go for illegal sex selection and give rise to problem of gender ration in the society. 
• In some of societies its has encourage corruption as resource full people by pass the laws by paying the money

Note: students can use other relevant reasons in the support of their answers. In discuss questions its important to present a reasoned arguments. 

  

Conclusion:

To decide the family size is the basic right and no one has a right to interfere in it. Government should not make rules and regulation it may back fire in the form of different types of social irregularities.   

(Its important to present well argued conclusion which must favour one side, it can be in favour or against. Important is your well developed reasoned logics) 

Topic 4.4: 3) Solution March 16 2014

Topic 4.4: 3) Discuss whether consumers would always want to be supplied by firms in perfect competition rather than by a monopoly. 

Solution: 
Introduction: There are large  no. of seller in the perfectly competitive competitive market who sells their product at same prices. Products are generally homogenous by nature and give undiscriminated access of product to all consumer. Monopoly represents a single firm producing or controlling the market to set the price by manipulating the production level in the market.

Reasons for which consumers favours perfect market: 

• comparatively lower prices
• prices remain same at all places
• consumer free to buy as much at same prices
• well informed consumer about the firms and its products
• wide choices to selecting selecting products out of large no. of producer firms
• firms are more responsive to consumer's grievances
• efficient firms as market is highly competitive

Reasons for which consumer not favours perfect market:   

• more of theoretical concept where such market really does not exist
• duplication of products for consumers
• consumer have to satisfy with same type of product
• no individuality for  consumers as all have access to same type of product
• consumer satisfaction is low as all are using same product
• lacks access to innovative products 

(Can use other logical explanations ) 

Conclusion: 

Conclusion must be one sided representing the strong argument given. List like approach is not appreciated by the Cambridge so you should write complete sentences for gaining good score. Here in this case we can say that consumer will not favour perfect market as this only a theoretical market, provides substandard products and forces them to buy same type of product without any individual choices.