Chapter 16
The Theory of Factor Pricing
1. In case of perfect competition in factor market, the value of marginal product relative to marginal revenue product is
āĻাā§°āĻ āĻŦāĻাā§°āϤ āύিāĻুঁāϤ āĻĒ্ā§°āϤিāϝোāĻিāϤাā§° āĻ্āώেāϤ্ā§°āϤ, āĻĒ্ā§°াāύ্āϤিāĻ ā§°াāĻāĻš āϏাāĻŽāĻ্ā§°ীā§° āϤুāϞāύাāϤ āĻĒ্ā§°াāύ্āϤিāĻ āϏাāĻŽāĻ্ā§°ীā§° āĻŽূāϞ্āϝ āĻšৈāĻে
(a) Greater
āĻŦৃāĻšāϤ্āϤ⧰
(b) Equal
āϏāĻŽাāύ
(c) Smaller
āϏ⧰ু
Answer: (b) Equal (āϏāĻŽাāύ)।
2. When there is imperfect competition in the factor market
āϝেāϤিāϝ়া āĻাā§°āĻ āĻŦāĻাā§°āϤ āĻ āϏিāĻĻ্āϧ āĻĒ্ā§°āϤিāϝোāĻিāϤা āĻšāϝ়
(a) VMP=MRP
āĻিāĻāĻŽāĻĒি=āĻāĻŽāĻā§°āĻĒি
(b) VMP<MRP
āĻিāĻāĻŽāĻĒি<āĻāĻŽāĻā§°āĻĒি
(c) VMP>MRP
āĻিāĻāĻŽāĻĒি>āĻāĻŽāĻā§°āĻĒি
Answer: (c) VMP>MRP (āĻিāĻāĻŽāĻĒি>āĻāĻŽāĻā§°āĻĒি)।
3. According to the marginal productivity theory, the price of a factor and its MRP tend to
āĻĒ্ā§°াāύ্āϤিāĻ āĻā§āĻĒাāĻĻāύāĻļীāϞāϤা āϤāϤ্āϤ্āĻŦ āĻ āύুāϏ⧰ি, āĻāĻা āĻাā§°āĻā§° āĻŽূāϞ্āϝ āĻā§°ু āĻāϝ়াā§° āĻāĻŽ.āĻā§°.āĻĒি.-ā§° āĻĒ্ā§°ā§ąāĻŖāϤা āĻĨাāĻে
(a) Equality
āϏāĻŽāϤা
(b) Inequality
āĻŦৈāώāĻŽ্āϝ
(c) Neither of the two
āĻĻুāϝ়োāĻাā§° āĻোāύোāĻোā§ąেāĻ āύāĻšāϝ়
Answer: (a) Equality (āϏāĻŽāϤা)।
4. According to modern theory, price of a factor is determined by
āĻāϧুāύিāĻ āϤāϤ্āϤ্āĻŦ āĻ āύুāϏ⧰ি, āĻāĻা āĻাā§°āĻā§° āĻŽূāϞ্āϝ āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়
(a) Demand for it
āĻāϝ়াā§° āĻŦাāĻŦে āĻাāĻšিāĻĻা
(b) Supply of it
āĻāϝ়াā§° āϝোāĻাāύ
(c) Both demand and supply
āĻাāĻšিāĻĻা āĻā§°ু āϝোāĻাāύ āĻĻুāϝ়োāĻা
Answer: (c) Both demand and supply (āĻাāĻšিāĻĻা āĻā§°ু āϝোāĻাāύ āĻĻুāϝ়োāĻা)।
5. Input demand curve with more than one variable factor, in contrast with the curve with single variable input is
āĻāĻাāϤāĻৈ āĻ āϧিāĻ āĻĒā§°িā§ąā§°্āϤāύāĻļীāϞ āĻাā§°āĻā§° āϏৈāϤে āĻāύāĻĒুāĻ āĻাāĻšিāĻĻা āĻŦāĻ্ā§°, āĻāĻāĻ āĻĒā§°িā§ąā§°্āϤāύāĻļীāϞ āĻāύāĻĒুāĻā§° āϏৈāϤে āĻŦāĻ্ā§°ā§° āĻŦিāĻĒā§°ীāϤে
(a) More elastic
āĻ āϧিāĻ āĻāϞাāώ্āĻিāĻ
(b) Less elastic
āĻāĻŽ āĻāϞাāώ্āĻিāĻ
(c) Neither of the two
āĻĻুāϝ়োāĻাā§° āĻোāύোāĻোā§ąেāĻ āύāĻšāϝ়
Answer: (b) Less elastic (āĻāĻŽ āĻāϞাāώ্āĻিāĻ)।
Very Short Answer Type Questions
1. Define personal distribution.
āĻŦ্āϝāĻ্āϤিāĻāϤ āĻŦিāϤ⧰āĻŖ āύিā§°্āϧাā§°āĻŖ āĻā§°া।
Answer:
2. What is functional distribution?
āĻাā§°্āϝāĻā§°ী āĻŦিāϤ⧰āĻŖ āĻি?
Answer:
3. Give the meaning of the concept of productivity.
āĻā§āĻĒাāĻĻāύāĻļীāϞāϤাā§° āϧাā§°āĻŖাāĻোā§° āĻ ā§°্āĻĨ āĻĻিāϝ়া।
Answer:
4. What is MRP?
āĻāĻŽ.āĻā§°.āĻĒি. āĻি?
Answer:
5. Give the meaning of the VMP.
āĻি.āĻāĻŽ.āĻĒি.-ā§° āĻ ā§°্āĻĨ āĻĻিāϝ়া।
Answer:
6. What is the essence of neo-classical marginal productivity theory?
āĻ¨ā§ą-āϧ্ā§°ুāĻĒāĻĻী āĻĒ্ā§°াāύ্āϤিāĻ āĻā§āĻĒাāĻĻāύāĻļীāϞāϤা āϤāϤ্āϤ্āĻŦā§° āϏাā§°াংāĻļ āĻি?
Answer:
7. Explain in brief the modern theory of distribution.
āĻŦিāϤ⧰āĻŖā§° āĻāϧুāύিāĻ āϤāϤ্āϤ্āĻŦāĻো āĻāĻŽুāĻৈ āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
Short Answer Type Questions
1. What is meant by App and ARP.
āĻāĻĒ āĻā§°ু āĻāĻā§°āĻĒিā§° āĻ ā§°্āĻĨ āĻি।
Answer:
2. Define the concept of VMP and MRP>
āĻিāĻāĻŽāĻĒি āĻā§°ু āĻāĻŽāĻā§°āĻĒিā§° āϧাā§°āĻŖাāύিā§°্āϧাā§°āĻŖ āĻā§°āĻ>
Answer:
3. What are the conclusions given by the marginal theory of distribution ?
āĻŦিāϤ⧰āĻŖā§° āĻĒ্ā§°াāύ্āϤিāĻ āϤāϤ্āϤ্āĻŦā§° āĻĻ্āĻŦাā§°া āĻি āϏিāĻĻ্āϧাāύ্āϤ āĻĻিāϝ়া āĻšৈāĻে?
Answer:
4. What are the assumptions of the modern theory of distribution?
āĻŦিāϤ⧰āĻŖā§° āĻāϧুāύিāĻ āϤāϤ্āϤ্āĻŦā§° āϧাā§°āĻŖাāĻŦোā§° āĻি?
Answer:
Long Answer Type Questions
1. Make a distribution between functional and personal distribution.
āĻাā§°্āϝāĻā§°ী āĻā§°ু āĻŦ্āϝāĻ্āϤিāĻāϤ āĻŦিāϤ⧰āĻŖā§° āĻŽাāĻāϤ āĻŦিāϤ⧰āĻŖ āĻā§°িāĻŦ।
Answer:
2. Give the different concept related to productivity.
āĻā§āĻĒাāĻĻāύāĻļীāϞāϤাā§° āϏৈāϤে āϏāĻŽ্āĻĒā§°্āĻিāϤ āĻŦিāĻিāύ্āύ āϧাā§°āĻŖা āĻĻিāϝ়া।
Answer:
3. Explain the relationship between VMP and MRP in different market situations.
āĻŦিāĻিāύ্āύ āĻŦāĻাā§°āĻĒā§°িāϏ্āĻĨিāϤিāϤ āĻিāĻāĻŽāĻĒি āĻā§°ু āĻāĻŽāĻā§°āĻĒিā§° āĻŽাāĻā§° āϏāĻŽ্āĻĒā§°্āĻ āĻŦ্āϝাāĻ্āϝা āĻā§°া।
Answer:
4. What are the assumptions and generalisations of neo-classical marginal productivity theory?
āĻ¨ā§ą-āϧ্ā§°ুāĻĒāĻĻী āĻĒ্ā§°াāύ্āϤিāĻ āĻā§āĻĒাāĻĻāύāĻļীāϞāϤা āϤāϤ্āϤ্āĻŦā§° āϧাā§°āĻŖা āĻā§°ু āϏাāϧাā§°āĻŖীāĻā§°āĻŖ āĻি?
Answer:
5. On what grounds is the marginal productivity theory criticized?
āĻĒ্ā§°াāύ্āϤিāĻ āĻā§āĻĒাāĻĻāύāĻļীāϞāϤা āϤāϤ্āϤ্āĻŦāĻ āĻিāĻšā§° āĻিāϤ্āϤিāϤ āϏāĻŽাāϞোāĻāύা āĻā§°া āĻšāϝ়?
Answer:
6. How are factors prices determined through the modern theory of distribution?
āĻŦিāϤ⧰āĻŖā§° āĻāϧুāύিāĻ āϤāϤ্āϤ্āĻŦā§° āĻā§°িāϝ়āϤে āĻাā§°āĻā§° āĻŽূāϞ্āϝ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়?
Answer:
7. How can you derive demand curve for single variable factors (labour)?
āĻāĻĒুāύি āĻāĻāĻ āĻĒā§°িā§ąā§°্āϤāύāĻļীāϞ āĻাā§°āĻā§° (āĻļ্ā§°āĻŽ) āĻŦাāĻŦে āĻাāĻšিāĻĻা āĻŦāĻ্ā§° āĻেāύেāĻĻā§°ে āĻāĻšā§°āĻŖ āĻā§°িāĻŦ āĻĒাā§°ে?
Answer:
8. What factors can bring shifts in the input demand curve?
āĻāύāĻĒুāĻ āĻাāĻšিāĻĻা āĻŦāĻ্ā§°āϤ āĻি āĻাā§°āĻে āĻĒā§°িā§ąā§°্āϤāύ āĻāύিāĻŦ āĻĒাā§°ে?
Answer:
Very long Answer Type Questions
1. Explain the different concept related to productivity.
āĻā§āĻĒাāĻĻāύāĻļীāϞāϤাā§° āϏৈāϤে āϏāĻŽ্āĻĒā§°্āĻিāϤ āĻŦিāĻিāύ্āύ āϧাā§°āĻŖাāĻো āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
2. Give a clear exposition of the marginal productivity theory of distribution.
āĻŦিāϤ⧰āĻŖā§° āĻĒ্ā§°াāύ্āϤিāĻ āĻā§āĻĒাāĻĻāύāĻļীāϞāϤা āϤāϤ্āϤ্āĻŦā§° āϏ্āĻĒāώ্āĻ āĻŦ্āϝাāĻ্āϝা āĻĻিāϝ়া।
Answer:
3. What are the objections raised against the neo-classical theory of distribution?
āĻŦিāϤ⧰āĻŖā§° āĻ¨ā§ą-āϧ্ā§°ুāĻĒāĻĻী āϤāϤ্āϤ্āĻŦā§° āĻŦিā§°ুāĻĻ্āϧে āĻি āĻāĻĒāϤ্āϤি āĻāϤ্āĻĨাāĻĒāύ āĻā§°া āĻšৈāĻে?
Answer:
4. The factor prices are determined by the forces of both demand and supply. Discuss.
āĻাā§°āĻā§° āĻŽূāϞ্āϝāĻŦোā§° āĻাāĻšিāĻĻা āĻā§°ু āϝোāĻাāύ āĻĻুāϝ়োāĻা āĻļāĻ্āϤিā§° āĻĻ্āĻŦাā§°া āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়। āĻāϞোāĻāύা āĻā§°া।
Answer:
5. Explain clearly the derivation of input demand curve of the factor labour.
āĻাā§°āĻ āĻļ্ā§°āĻŽিāĻā§° āĻāύāĻĒুāĻ āĻাāĻšিāĻĻা āĻŦāĻ্ā§°ā§° āĻāĻĻ্āĻā§ą āϏ্āĻĒāώ্āĻāĻাā§ąে āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
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