Question

Read the extract given below and answer the questions.

The Economic Times - 2024 “Lakshadweep becomes new keyword for investors. Praveg caught shareholder’s attention as it had last month received a work order for the development of operation, maintenance and management of atleast 50 tents at Lakshadweep’s island. The resorts will also offer commercial activities like scuba diving, destination weddings, corporate functions etc. Small cap soars 43% in 3 days. It is known for its luxury resorts in tourist places. During the day the stock rallied 17% to hit an all time high of Rs. 1,187.95"

1. What commercial activities would the resorts offer?
2. State the quality of a factor of production highlighted above.
3. Define price elasticity of demand.
4. State the doctrine of Laissez faire.

Answer 1

1. Scuba diving, Destination weddings & Corporate functions activities are offered.
2. The quality of a factor of production highlighted is the Innovative power of an Entrepreneur.
3. The price elasticity of Demand indicates the responsiveness of the quantity demanded of any commodity due to a 1% change in its price.
4. `"E"_"p"=(-) ("Percentage change in the Quantity demanded")/("Percentage change in the price")`
   During the 19th century, it was believed that the state or the government should not interfere in a country's economic activities. This is known as the Doctrine of Laissez-faire. (At present, however, it is universally recognized that the state must play a positive role in a country's economic development.)