CBSE Class-12 Economics: Questions 382 - 389 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: 382

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

Essay Question▾

Describe in Detail

Complete the following table:

Income

Saving

Marginal propensity to consume

Average Propensity to save

0

-12

-

-

20

-6

-

-

40

0

-

-

60

6

-

-

Explanation

Income (Y)

Saving (S)

Consumption

(C) =Y - S

Marginal propensity to consume (Equation)

Average Propensity to save Equation

0

-12

12

-

-

20

-6

26

0.7

-0.3

40

0

40

0.7

0

60

6

54

0.7

0.1

Consumption = Income – Saving

It means in first… (67 more words) …

Question number: 383

» Producer Behaviour and Supply » Producer's Equilibrium

Essay Question▾

Describe in Detail

Explain the condition of consumer’s equilibrium in case of (I) single commodity and (ii) two commodities. Use utility approach.

Explanation

The condition of consumer’s equilibrium in case of

(i) single commodity: -In this case of single commodity, a consumer contain equilibrium when the utility from additional unit of rupee spent on commodity become equal to Marginal utility of Money

Marginal utility of rupee spent on commodity is derived from additional… (145 more words) …

Question number: 384

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

The difference between average total cost and average variable cost decrease with decrease in the level of output.

Question number: 385

» Producer Behaviour and Supply » Revenue

True-False▾

Following Statement is true or false:

When marginal revenue is zero, average revenue will be constant.

Question number: 386

» Government Budget and the Economy » Government Budget

Essay Question▾

Describe in Detail

How can a government budget help in reallocation of resource in an economy? Explain.

Explanation

T he government of a country directs the allocation of resources in a manner that there is a balance between the goals of profit maximization and social welfare. Production of goods which are harmful for health are charged heavy taxation and production of socially useful goods are provided with subsidy.

Question number: 387

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

List the types of transaction that are recorded in the current account of balance of payments account.

Explanation

Current account of balance of payments records the following types of transaction:

  • Export of goods and services.
  • Import of goods and services.
  • Unilateral transfers from one country to other.
  • Net income abroad.
  • Net Current transfers

Question number: 388

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

Essay Question▾

Describe in Detail

C = 100 + 0.75Y is a consumption function (Where C = consumption expenditure and Y = national income) and investment expenditure is 800. On the basis of this information calculate:

(i) Equilibrium level of national income

(ii) Saving at equilibrium level of national income.

Explanation

Answer: -

(i) Equilibrium level of national income

Y = C + I

Y = 100 + 0.75Y + 800

0.25Y = 900

Y= Equation = 3600

So, Equilibrium level of national income is Rs. 3600

(iii) Saving at equilibrium level of national income.

Y = C+I

3600 = C… (15 more words) …

Question number: 389

» National Income and Related Aggregates » Methods of Calculating National Income » Income Method

Essay Question▾

Describe in Detail

From the following data, calculate “national income” by (a) income method and (b) expenditure method:

calculate national income calculate national income by (a) income method and (b) expenditure method:

-

( Rs. in crores)

Interest

150

Rent

250

Government final consumption expenditure

600

Private final consumption expenditure

1200

Profits

640

Compensation of employees

1000

Net factor income to abroad

30

Net indirect taxes

60

Net exports

(-) 40

Consumption of fixed capital

50

Net domestic capital formation

340

Explanation

(a) Income method

National income = Interest + Rent + Profits + Compensation of employees - Net factor income to abroad

=150 + 250 + 640 + 1000 – 30

= Rs. 2010 Crore

(b) Expenditure method:

National income = Government final consumption expenditure + Private final consumption expenditure +… (30 more words) …

f Page
Sign In