CBSE Class-12 Economics: Questions 231 - 240 of 523
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Question number: 231
» Producer Behaviour and Supply » Cost
Appeared in Year: 2012
Write in Short
What is the behavior of average fixed cost as output increase?
Question number: 232
» National Income and Related Aggregates » Stocks and Flows
Appeared in Year: 2012
Describe in Detail
Autonomous consumption = 100 Rs.
Marginal propensity to consume = 0.70
National income = 1000 Rs.
Explanation
In this C = 100 Rs.
Pc (b) = 0.70
Y = 1000
So, consumption expenditure = + by
= 100 + 0.70 1000
=100 + 700
= Rs. 800
Question number: 233
» Balance of Payments » Balance of Payments Account
Appeared in Year: 2012
Write in Brief
Define Tax.
Question number: 234
» National Income and Related Aggregates » Gross National Product
Appeared in Year: 2012
Describe in Detail
Giving reason explain how should the following be treated in estimating national income:
(i) Interest paid by banks on deposits by individuals.
(ii) National debt interest.
Explanation
(I) Interest paid by bank on deposits should be included in the
Estimation of National Income because it is a factor income
For the account holders.
(iii) National debt interest should not be included in
the estimation of National Income because it is not known
Whether the government has borrowed… (3 more words) …
Question number: 235
» Consumer's Equilibrium and Demand » Demand » Determinants of Demand
Appeared in Year: 2012
Describe in Detail
Explain the concept of ‘deficient demand’ in macroeconomics. Also explain the role of Bank rate in correcting it.
Explanation
In deficient demand equilibrium level of demand for output is less than full employment level of output.
If <
It means deficit demand include when aggregate demand of output is less than full employment of demand. Deflationary gap measure amount of deficiency in aggregate demand.
It represent as… (98 more words) …
Question number: 236
» Market and Price Determination » Market Types
Appeared in Year: 2012
Write in Short
What is a price taker firm?
Question number: 237
» Consumer's Equilibrium and Demand » Indifference Curve Analysis
Appeared in Year: 2012
Describe in Detail
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.
Explanation
The Consumption Curve.
consumption curve given.
In this diagram + by is the consumption curve. Here line is aggregate supply curve. At point E consumption = income and is represent as autonomous consumption.
Step for derivation of supply curve from consumption curve given below:
(1) In this… (48 more words) …
Question number: 238
» Balance of Payments » Foreign Exchange Rate
Appeared in Year: 2012
Write in Brief
Give meaning of managed floating exchange rate.
Question number: 239
» National Income and Related Aggregates » Types of Goods
Appeared in Year: 2012
Describe in Detail
Given price of a good, how does a consumer decide as to how much of that good is to be purchased?
Explanation
In this a consumer compares marginal utility of the good with its price. The consumer will be at equilibrium when the marginal utility of good is equal to price of good.
It is represented as =
If > then price is less than marginal utility. So,… (42 more words) …
Question number: 240
» Balance of Payments » Balance of Payments Account
Appeared in Year: 2012
Describe in Detail
Explain the components of legal reserve ratio.
Explanation
commercial banks to keep as a cash
Its component are given below:
(i) Cash Reserve Ratio (CRR): -
CRR is included amount of funds that commercial banks maintain with reserve bank of India.
For example assume that total assets of bank is worth Rs. 250 crore and minimum cash ratio… (64 more words) …