Category: Economics

➤ How can a bank design an effective bundle for retail customers?
Design an effective retail bundle by aligning customer needs, segmenting by behavior, and combining complementary products like a low-fee checking account, savings plan, and overdraft protection. Test price points, include clear benefit statements, and offer optional add-ons. Use A/B testing and analytics to monitor uptake, profitability, and impact on customer satisfaction.

Which of the following statements is not correct about command economies?

The opportunity cost of something is what you give up to get it.True9False

➤ Why does stagflation occur according to the Keynesian model?
Stagflation occurs when SRAS shifts left enough to raise inflation and reduce output at the same time. The Keynesian AD-AS diagram shows a higher price level and lower real GDP, which increases unemployment. Supply shocks, rising input costs, or persistent negative productivity shocks often trigger stagflation and complicate conventional demand-management policies.

3.
➤ How did infrastructure and staffing problems affect meal quality and reach?
Many schools lacked kitchens, dining space, and trained cooks. Authorities often resorted to cold or packed meals because cooking facilities were absent. Limited transport and procurement systems also constrained supply. These practical shortcomings reduced meal quality, limited the number of children served, and increased operational costs for local councils.

The main objective for all business is to maximize unrealized profits.True