CBSE Class-12 Economics: Questions 264 - 268 of 523

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Question number: 264

» Balance of Payments » Foreign Exchange Rate

Essay Question▾

Describe in Detail

How is foreign exchange rate determined? Use diagram.

Explanation

Conversion rate of one currency into another. This rate depends on the local demand for foreign currencies and their local supply to country’s trade balance and strength of its economy.

We assume that there are two countries, India and America, the exchange rate of their currencies is to be decided.… (156 more words) …

Question number: 265

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Categorize the following government receipts into revenue receipts and capital receipts. Give reason for your answer.

(a) Receipts from sale of shares of a public sector undertaking.

(b) Borrowings from public.

(c) Profits of public sector undertakings.

(d) Income tax received by government.

Explanation

(a) Receipts from sale of shares of a public sector undertaking is capital receipt because it outcomes in reduction of assets of government.

(b) Borrowings from public it is capital receipt and it creates liability for government.

(c) Profits of public sector undertakings it is not capital receipt but it… (42 more words) …

Question number: 266

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

Short Answer Question▾

Write in Short

How does the nature of a commodity influence its price elasticity of demand? Explain.

Question number: 267

» National Income and Related Aggregates » Gross National Product

Essay Question▾

Describe in Detail

Calculate Gross National Product at Market Price and Net National Disposable Income from the following data:

Calculate Gross National Product at Market Price and Net National Disposable Income

Calculation in detail Gross National Product at Market Price and Net National Disposable Income

-

( Rs. crores)

Current transfers from government

25

Compensation of employees

600

Net current transfers from the rest of the world

20

Rent

100

Consumption of fixed capital

50

Interest

120

Net indirect tax

110

Profit

80

Mixed income of the self-employed

200

Net factor income from abroad

(-) 10

Explanation

(national product) NDP = Rent + Internet + Profit + Compensation of employees + Mixed income of the self-employed

= 100 + 120 + 80 + 600 + 200

= Rs. 1100 crores.

(Gross National Product) GNP = NDP + Net factor income from abroad + Net indirect tax +… (112 more words) …

Question number: 268

» National Income and Related Aggregates » Circular Flow of National Income

Essay Question▾

Describe in Detail

Explain equilibrium level of national income using Savings and Investment approach. Draw diagram in support of your explanation.

Explanation

The equilibrium level of national income

The Equilibrium Level of National Income

This image of equilibrium level of national income

In this figure equilibrium level of national income with reference to equality between S and I.

Equilibrium level of income is determined at point when planned saving is equal to planned investment. SS curve is saving… (7 more words) …

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