SARA PATHSHALA

Privatization refers to the process of transferring ownership, control, or management of public sector assets, enterprises, or services to the private sector. This can occur through various methods, such as selling state-owned enterprises (SOEs) to private investors, contracting out public services to private companies, or deregulating industries to encourage private participation. The primary goals of privatization are often to enhance efficiency, reduce government expenditure, and stimulate economic growth. In the context of Nepal, privatization has been discussed as a potential solution to address challenges faced by state-owned enterprises, which have historically struggled with inefficiency, corruption, and financial losses. Advantages of Privatization in Nepal Privatization can bring several benefits to Nepal, particularly given the country’s socio-economic challenges and the inefficiencies of its public sector. The key advantages are: Increased Efficiency Private companies are...

Public revenue refers to the total income a government collects from various sources to fund its operations and provide public services. In other words, public revenue is the sum of all these sources—taxes, non-tax income, grants, and borrowed funds. Governments use this money to pay for essential services like education, healthcare, infrastructure, and defense. Public Revenue Sources in the Context of Nepal Public revenue in Nepal refers to the income collected by the government to finance its operations, provide public services, and support development initiatives. Nepal operates under a federal system, established by the Constitution of 2072, which divides governance into three tiers: central, provincial, and local. Each level of government has specific revenue-raising powers, with the central government collecting the majority of the nation's public revenue. Below, I explain the main sources of public revenue in Nepal, focusing primarily on the central government while also ack...

Key Points Research suggests a positive but limited relationship between FDI and GDP in Nepal. FDI's impact on GDP growth is constrained by low investment levels and structural challenges. Political instability and poor infrastructure seem to hinder FDI effectiveness. Evidence leans toward FDI contributing to sectors like hydropower, but with modest GDP impact. Overview Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) in Nepal show a complex relationship, where FDI can support economic growth, but its overall effect is not as strong as in other countries. Studies indicate a long-term positive correlation, yet the low scale of FDI and various internal issues limit its contribution to Nepal's economy. Trends and Data FDI as a percentage of GDP in Nepal has been low, typically around 0.1-0.2% in recent years, with a high of 0.5% in 2012 and a low of -0.1% in 2006. Challenges Factors like political instability, ou...

Definition of Managerial Economics Managerial economics is a branch of economics that applies economic theories, principles, and analytical tools to facilitate business decision-making. It focuses on helping managers make informed and efficient choices by providing a structured framework to analyze business problems, optimize the allocation of scarce resources, and achieve organizational goals. Essentially, it bridges the gap between abstract economic theory and practical management, enabling businesses to navigate complex market environments and enhance their competitiveness. In simpler terms, managerial economics equips managers with data-driven insights to answer questions like: How should we price our product? How much should we produce? Should we invest in this project? It combines qualitative reasoning with quantitative techniques, such as statistical models and forecasting, to guide optimal decision-making under conditions of uncertainty and limited resources. Scope of Manageri...

The evolution of money reflects humanity’s need for efficient exchange, trust, and economic scalability. It’s a story of adaptation, driven by social, technological, and political changes. 1. Barter Systems (Pre-3000 BCE) Before money, people traded goods and services directly—think swapping grain for livestock. Barter worked in small, trust-based communities but faltered with scale. Its flaws? The "double coincidence of wants" (both parties needing what the other offers), indivisibility of goods, and no standard value measure. 2. Commodity Money (3000 BCE–700 BCE) To solve barter’s issues, societies used widely valued goods as mediums of exchange—shells, beads, salt, or livestock. These had intrinsic value and were portable. Examples: Cowrie shells in Africa and Asia, or grain in Mesopotamia. But commodities were inconsistent in quality, hard to transport in bulk, and perishable. 3. Metal Money and Coinage (700 BCE–1500 CE) Metals like gold, silver, and copper became po...

Milton Friedman : "Money is anything that is generally accepted as payment for goods and services or in the repayment of debts." John Maynard Keynes : "Money is that which serves as a unit of account, a store of value, and a medium of exchange." M oney is defined as anything that serves as a medium of exchange , a unit of account , and a store of value . These three functions are fundamental to understanding money's role in an economy. Medium of Exchange: Money is universally accepted in transactions for goods and services. It eliminates the inefficiencies of bartering by providing a common item that everyone agrees to use, making trade smoother and more efficient. Unit of Account: Money acts as a standard measure of value. It allows us to assign prices to goods and services (e.g., a car might cost $20,000, or a loaf of bread $3), making it easier to compare their worth. Store of Value: Money retains its value over time, enabling people to save it and u...

1. Which of the following is NOT a feature of a mixed economy?  Complete absence of market 2. Which tax system is based on the principle of equity? Progressive tax system 3. What is the major source of government revenue in Nepal?  Indirect taxes 4. Which is an example of a capital gains tax in Nepal?  Tax on profit from selling property 5. What is the main objective of a government budget? Managing public expenditures and revenue 6. What does the concept of "marginal utility" measure?   Additional satisfaction from one more unit 7. What is the current per capita income of Nepalese people (approx.)? USD 1430 per person per year 8. Who introduced the concept of the invisible hand? Adam Smith 9. Which of the following measures economic inequality? Gini Coefficient 10. What is the main goal of economic development? Improved standard of living 11. Which of the following is a normative economic statement? Government should reduce unemployment. 12. What does "opportunity c...

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