# CBSE Class-12 Economics: Questions 357 - 364 of 523

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## Question number: 357

» Consumer's Equilibrium and Demand » Demand » Market Demand

One Liner Question▾

### Write in Brief

Define market demand.

## Question number: 358

### Write in Short

What does cost mean in economics?

## Question number: 359

### Write in Short

Define ‘Production function’

## Question number: 360

Essay Question▾

### Describe in Detail

What are ‘open market operations’? How do these work as a method of credit control?

### Explanation

Open market operation means when central bank directly resorts to buy and sell securities in money market.

Credit control of bank has two types:

Quantitative credit control and Qualitative credit control

It establishes the economy by destroying the features which are responsible for increase in prices. Exercise effective control on… (2 more words) …

## Question number: 361

» Consumer's Equilibrium and Demand » Demand » Demand Curve

Essay Question▾

### Describe in Detail

Explain the effect of the following on demand for a good.

(i) Rise in income

(ii) Rise in prices of related goods

### Explanation

(i) Rise in income increase demand of a normal good then demand curve of the goods shifts to the right from D1 to D2. The demand at the same price OP rises from OQ1 to OQ2. It is given in diagram.

## Question number: 362

Essay Question▾

### Describe in Detail

 Output (units) Total Variable cost (Rs) Average variable cost Marginal cost 1 - 12 - 2 20 - - - - 10 10 4 40 - -

### Explanation

 Output (units) Total Variable Cost (Rs) Average variable cost Marginal Cost 1 12 12 12 2 20 10 8 3 30 10 10 4 40 10 10

In that sum find in first row find average variable cost

= = =12

Then in third row find Total… (44 more words) …

## Question number: 363

Essay Question▾

### Describe in Detail

Calculate ‘Gross National product at market price’ and ‘ personal income’ from the following data:

 - ( Rs. Crores) Corporation tax 35 Wages and salaries 200 National debt interest 25 Operating surplus 400 Net current transfer from abroad 15 Net factor income from abroad (-) 10 Consumption of fixed capital 20 Social security Contributions by employers 30 Net indirect tax 40 Net domestic product at factor cost accruing to the private sector 500 Current transfers from government 5

### Explanation

GNP = Operating surplus + Consumption of fixed capital + Net indirect tax - Net factor income from abroad

400 + 2 +10 + 40 = 452

Personal income = Wages and salaries + National debt interest + Net domestic product at factor cost accruing to the private sector -… (26 more words) …

## Question number: 364

Essay Question▾

### Describe in Detail

A consumer consumes only two goods. Explain his equilibrium with the help of utility approach.

### Explanation

A consumer is in state of equilibrium when we maximize his satisfaction by spending his given income on different goods and services.

If buying only two goods, the consumer strike on equilibrium when: = =

It implies that in equilibrium rupee worth of satisfaction is derived from… (16 more words) …

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