(a) Five ways by which entrepreneur can promote the economic development of a country:
1. A capable entrepreneur can assess the risk in advance and plan accordingly. He is the one who brings all the factors of production to one platform which can promote economic development of a country.
2. The industrial health of a nation depends on the level of entrepreneurship existing in it, economic development of the economy depends on entrepreneurial talent existing in the nation.
3. Entrepreneurship begets and also injects entrepreneurship by starting a chain reaction when the entrepreneur continuously tries to improve the quality of existing goods and services and add new ones e.g. when computers came into the market there was continuous improvement in the models.
4. By harnessing the entrepreneurial talent a society comes out of traditional lethargy to modern industrial culture.
5. What to produce, how much to produce and how efficiently it is to be produced depends on the class of entrepreneur who commands it that is why entrepreneur can promote the economic development of a country.
(b) 1. Demand for any commodity refers to the amount of that commodity that will be purchased at a particular price during a particular period of time.
|Price ( Rs.’000)||Quantity Demanded (’000)|
2. The following is an imaginary demand schedule for T.V in Agra market:
Demand Schedule for T.V
In the diagram price is shown on Y axis and qty. demanded is shown on X axis. DD represents demand curve, which shows that as the price increases demand decreases and vice-versa.
3. This diagram shows increase and decrease of demand. At price P the original demand curve is DD; keeping the price fixed. As the other factors determining demand changes, demand curve shifts. For example, if the income rises then at the same price demand will rise and demand curves will shift to the right to D1D1 position. Again, if income falls then demand will less at the same price, hence demand curve shifts to the left to D2D2 position.