CBSE Class-12 Economics: Questions 317 - 325 of 523

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 317

» Market and Price Determination » Market Equilibrium

Short Answer Question▾

Write in Short

Define ‘Marginal Rate of Transformation’.

Question number: 318

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the lending function of commercial banks.

Explanation

Lending function of commercial bank means they act as financial intermediaries and accept deposits from more money than they want to spend and lend it with more money and they have at hand.

It means money from lenders to borrowers.

Lenders - > Banks - > Borrowers

Function of Commercial… (10 more words) …

Question number: 319

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

Short Answer Question▾

Write in Short

Price elasticity of demand for good is (-) 2. The consumer buys a certain quantity of this good at a price of Rs. 8 per unit. When the price falls he buys 50 percent more quantity. What is the new price?

Question number: 320

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used in production of that good are increased simultaneously and in the same proportion.

Explanation

The behavior of Total Product (TP) is technically Returns to Scale. There are three possibilities:

(1) TP rises in greater proportion than the rise in inputs it is known as Increasing Returns to Scale. For example: Suppose there are only two inputs labor (L) and Capital (K). Suppose 1K +… (112 more words) …

Question number: 321

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

Essay Question▾

Describe in Detail

When price of a good falls from Rs. 10 per unit to Rs. 9 per unit, its demand rises from 9 units to 10 units. Compare expenditures on the good to find price elasticity of demand.

Explanation

price elasticity of demand

Calculatetion of price elasticity of demand.

Price (Rs)

Quantity demanded (units)

Total Expenditure (Rs)

10

9

90

9

10

90

So, price elasticity of demand is equal to unity.

Question number: 322

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to losses in the long run if the firms are free to leave the industry.

Explanation

In the long run if the firms are free to leave the industry than that individual firm earns only normal profits and zero profits for economicy. When a firm exits it operates at the point where minimum of long run average cost curve is contiguous price line. Firms don’t earn… (43 more words) …

Question number: 323

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to the profits in the long run if the firms are free to enter the industry.

Explanation

In the long run if the firms are free to enter the industry it will earn some profit but it will be zero profits in economiy. Entry of individual firm is operated at point where minimum of long run average cost curve is as a priceline.

In such situation firm… (50 more words) …

Question number: 324

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the acceptance of deposits function of commercial banks.

Explanation

A bank is accepting deposits from the public. People can deposit their money of following accounts:

(1) Fixed or Time deposit account: - Cash is deposited in his account for limited time. This is not payable on demand.

(2) Current or demand deposit Account: - In this depositor can deposit… (29 more words) …

Question number: 325

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

If marginal propensity to save is 0.2. How much new investment is required to make the national income rise by Rs. 600 crores? Calculate.

Explanation

K= 11MPS = 110.2 = 1.25

K= ΔyΔI ΔI=YK = 6001.25 =480

So, desired increase in investment = Rs. 480 crore.

Calculation of Marginal Propensity to Save

In this video calculation of marginal… (3 more words) …

Sign In