CBSE Class-12 Economics: Questions 337 - 346 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: 337

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if the proportionate increase in market demand is greater than increase in market supply? Use diagram.

Explanation

Market for a good is in equilibrium when proportionate increase in market demand is greater than increase in market supply the equilibrium price and quantity will rise.

market supply the equilibrium price and quantity

Market Supply the Equilibrium Price and Quantity

This image of market supply the equilibrium price and quantity

In that figure D1D1 is demand… (62 more words) …

Question number: 338

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain “Returns to Scale” using numerical examples. Give reasons.

Explanation

When a producer changes all factors of production in a proportion. The proportional relationship between output and factor is known as returns to scale. When all inputs are increased in the same proportion and three possibilities:

Revenue receipts does not create responsibility and reduction in assets. Receipts from tax revenue… (13 more words) …

Question number: 339

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between fixed cost and variable cost giving examples an example.

Explanation

Characteristics

Fixed cost

Variable cost

Definition

Fixed cost means it is indirect cost it is not dependent on level of goods or services.

Variable cost means cost of labor, material and change in volume of production.

Behavior

It is constant for given time period

It changes with change in the… (8 more words) …

Question number: 340

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Complete the following table:

Price ( Rs. )

Output (units)

Total Revenue ( Rs. )

Marginal Revenue (Rs)

10

1

-

-

-

2

14

-

-

3

-

1

-

4

12

-

Explanation

Price ( Rs. )

Output (units)

Total Revenue ( Rs. )

Marginal Revenue (Rs)

10

1

10

-

7

2

14

4 (14 - 10)

5

3

15

1 (15 - 14)

3

4

12

-3 (12 - 15)

Here, Total revenue = price × Output

Marginal Revenue = T… (33 more words) …

Question number: 341

» National Income and Related Aggregates » Gross Investment

Essay Question▾

Describe in Detail

As a result of increase in investment national income rises by Rs. 600 crores. If marginal propensity to consume is 0.75, calculate the increase in investment.

Explanation

Here, increase in investment national income ( Y) = Rs. 600 Crores

Marginal propensity to consume (MPC) = 0.75

K= 11MPC = 110.75 = 10.25 = 4

K= YI so, I = YK… (13 more words) …

Question number: 342

» Producer Behaviour and Supply » Revenue

Short Answer Question▾

Write in Short

Define revenue.

Question number: 343

» Market and Price Determination » Market Equilibrium

Short Answer Question▾

Write in Short

Define ‘Equilibrium price’.

Question number: 344

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Given the market price of good, how does a consumer decide as to how many units of that good to buy? Explain.

Explanation

Given the market price of good, how does a consumer decide as to how many units of that good to buy it is based on marginal. Consumer purchases many units of good where marginal utility of rupee spent in a good and it is equal to marginal utility of money… (80 more words) …

Question number: 345

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Give meaning of ‘opportunity cost’

Question number: 346

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Draw supply curves with price elasticity of supply throughout equal to (i) Zero (ii) one, (iii) infinity and less than one.

Explanation

Price elasticity of supply is the measure of change in quantity supplied of commodity because of the change in its price. Law of supply is the direction in which supply will change in result of change in price, a decrease in price will conduct to contraction of supply and a… (157 more words) …

Sign In