CBSE Class-12 Economics: Questions 211 - 218 of 523

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Question number: 211

» Money and Banking » Commercial Banking System

Appeared in Year: 2010

Essay Question▾

Describe in Detail

How do changes in bank rate affect money creation by Commercial Banks? Explain

Explanation

  • Following is the way how changes in bank rate affect money creation by Commercial Banks:
  • Increase in the bank rate by the central bank increases cost of borrowing for the commercial banks. This increase in the lending rate reduces the borrowing capacity of the general public. This lowers the multiplier… (68 more words) …

Question number: 212

» Producer Behaviour and Supply » Cost

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Given below is the cost schedule of a firm. Its average fixed cost is Rs. 20 when it produces 3 units.

Calculate its marginal cost and average total cost

Calculate its marginal cost and average total cost in detail

Output (units)

1

2

3

Average variable cost ( Rs. )

30

28

32

Calculate its marginal cost and average total cost at each given level of output.

Explanation

Calculate its marginal cost and average total cost

Calculate its marginal cost and average total cost in detail

Output

(units)

AVC

AFC

TFC (AFC Equation Q)

TVC (AVC Equation Q)

ATC (AVC

+AFC)

TC (TFC + TVC)

1

30

60 (60/1)

60 (60 Equation 1)

30

90

90

2

28… (125 more words) …

Question number: 213

» Consumer's Equilibrium and Demand » Indifference Curve Analysis

Appeared in Year: 2010

Short Answer Question▾

Write in Short

Define an indifference curve.

Question number: 214

» Consumer's Equilibrium and Demand » Demand » Demand Schedule

Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the role of the following in correcting ‘deficit demand’ in an economy: (i) Open market operations. (ii) Bank rate.

Explanation

(i) Open Market Operations as an Instrument to correct Deficit Demand

Open Market Operations indicate to the buying and selling of securities in general public or to the commercial banks in an open market. Deficit demand and the central bank purchases securities in the open market with purchase of securities… (94 more words) …

Question number: 215

» Producer Behaviour and Supply » Supply » Supply Schedule

Appeared in Year: 2011

Essay Question▾

Describe in Detail

What is a supply schedule? What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain.

Explanation

A table which contains values for the price of a good and the quantity that would be supplied at that price is called supply schedule.

The supply schedule.

In detail supply schedule.

Price (Rs)

Quantity (units)

1

5

2

10

3

15

4

20

This represent graphically the effect on… (89 more words) …

Question number: 216

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand

Appeared in Year: 2009

Short Answer Question▾

Write in Short

When is the demand of a commodity said to be inelastic?

Question number: 217

» Consumer's Equilibrium and Demand » Demand » Demand Schedule

Appeared in Year: 2010

Short Answer Question▾

Write in Short

Why is demand for water inelastic?

Question number: 218

» Producer Behaviour and Supply » Producer's Equilibrium

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the effect of increase in income of buyers of a ‘normal commodity’ on its equilibrium price.

Explanation

Normal goods share positive relationship with consumer’s income. When consumers’ income increases or decreases than demand of normal goods also increases or decreases. This has been described in the figure that follows

effect of increase in income of buyers of a 'normal commodity'

Effect of Increase in Income of Buyers of a ‘Normal Commodity’

effect of increase in income of buyers… (88 more words) …

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