# CBSE Class-12 Economics: Questions 365 - 373 of 523

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## Question number: 365

Essay Question▾

### Describe in Detail

Complete the following table:

 Output (units) Total Revenue ( Rs. ) Marginal Revenue ( Rs. ) Average Revenue ( Rs. ) 1 - - 8 2 - 4 - 3 12 - 4 4 8 - 2

### Explanation

 Output (units) Total Revenue ( Rs. ) Marginal Revenue ( Rs. ) Average Revenue ( Rs. ) 1 8 - 8 (8 Equation 1) 2 12 4 (12 - 8) 6 (12 Equation 2) 3 12 0 (12 - 12) 4 (12 Equation 3) 4 8 -4 (8 - 12)… (23 more words) …

## Question number: 366

Essay Question▾

### Describe in Detail

Complete the following table:

 Output (units) Average Variable cost ( Rs. ) Total cost Marginal cost 1 - 60 20 2 18 - - 3 - - 18 4 20 120 - 5 20 - -

### Explanation

swer: -

 Output (units) Average Variable cost ( Rs. ) Total cost Marginal cost TVC 1 20 (20/1) 60 20 20 2 18 76 (36 + 40) 16 (94 - 76) 36 (18 Equation 2) 3 18 (54/3) 94 (76 + 18) 18 54 4 20 120 26 (120 -… (49 more words) …

## Question number: 367

### Write in Short

Why is income tax a direct tax?

## Question number: 368

Essay Question▾

### Describe in Detail

While calculating national income of India from its domestic factor income, how will you treat the following? Give reasons for your answer.

(i) Salaries received by Indians working in branches of foreign banks in India.

(ii) Profits earned by an Indian Bank from its branches abroad.

(iii) Rent paid by embassy of Japan in India to an Indian resident.

### Explanation

(i) Salaries received by Indians working in branches of foreign banks in India is part of net factor income from abroad because these employees are normal residents of India working in foreign establishments. So, this is added to domestic factor income to get national income.

(ii) Profits earned by an… (61 more words) …

## Question number: 369

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

### Write in Short

When is the demand of commodity said to be elastic?

## Question number: 370

» Money and Banking » Central Bank & Its Functions » Central Bank

Essay Question▾

### Describe in Detail

State any three points of distinction between central bank and commercial banks.

### Explanation

 Characteristics Central Bank Commercial bank Definition Central bank is the institution of a country’s monetary system. Commercial banks are part of banking structure. Authority It has authority to print new currency notes It has no authority to print currency notes. Custody It is custodian of country’s foreign exchange and stock… (13 more words) …

## Question number: 371

Essay Question▾

### Describe in Detail

Explain the circular flow of income.

### Explanation

Various sectors like households, firms, government and foreign sectors work. These sectors function with mutual understanding. There is flow of expenditure and income and that of goods and services from these sectors.

In… (55 more words) …

## Question number: 372

Essay Question▾

### Describe in Detail

Distinguish between intermediate products and final products. Give example.

### Explanation

 Characteristic Final products Intermediate products What is use? Final products are products that are ready for use by final consumers. Intermediate products used as raw materials for production. Processing Products do not require any further processing. Products require further processing and go in various stages of production. Example Wheat purchased… (21 more words) …

## Question number: 373

Essay Question▾

### Describe in Detail

Why is a firm under Perfect competition a price-taker? Explain

### Explanation

A firm under perfect competition is a price –taker because of the existence of large number of sellers in perfect competitive market selling homogenous products. In large number of seller arise a situation of free and perfect competition in market.

The market price is determined by hands of market by… (35 more words) …

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