# CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics: Questions 409 - 414 of 523

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## Question number: 409

» Producer Behaviour and Supply » Supply » Supply Curve

### Write in Short

What causes a downward movement along a supply curve?

## Question number: 410

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

### Describe in Detail

Commodities X and Y have equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 percent rise in its price. Calculate

### Explanation

In this given Initial quantity supplied = 400 units and final quantity supplied = 500 units and rise in price = 20%

%change in quantity of x =

= 100 = 25%

Elasticity of supply of X =

=1.25

Elasticity of supply of X = elasticity of supply of Y

Elasticity of supply o

… (85 more words) …

## Question number: 411

Essay Question▾

### Describe in Detail

How will you treat the following while estimating domestic factor income of India? Give reasons for your answer.

(i) Remittances from non-resident Indians to their families in India.

(ii) Rent paid by the embassy of japan in India to a resident Indian.

(iii) Profits earned by branches of foreign bank in India.

### Explanation

(I) Remittances from non-resident Indians to their families in India is not added in domestic factor income of India because its remittances from non-resident Indians to their families is unearned income as transfer payments.

(ii) Rent paid by the embassy of japan in India to a resident Indian is not added in domestic factor income of India bec

… (49 more words) …

## Question number: 412

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

Essay Question▾

### Describe in Detail

Explain difference between ’decrease in demand”, and ‘decrease in quantity demanded’ with the help of a demand schedule. Give two cause of decrease in demand.

### Explanation

 Characteristics Increase in demand Increase in quantity demanded Definition (1) When demand rises due to change in factors than price is called increase in demand. (1) When quantity demanded of a commodity rises due to fall in its own price it is called increase in quantity demanded. What it indicates? (2) It is increase of demand which indicates rightward shift in demand curve. (2) It indicate movement a given demand curve

… (108 more words) …

## Question number: 413

Essay Question▾

### Describe in Detail

Explain two points of distinction between monopoly and monopolistic competition.

### Explanation

 Characteristics Monopoly competition monopolistic competition Number of Buyers and sellers In this only single sellers and large number of buyers in demand. In this large number of sellers and buyers both. Nature of products It is the main producer of the commodity in the market so it has no close substitutes. In this producers produce different product that are close substitutes of each other.

## Question number: 414

Essay Question▾

### Describe in Detail

Calculate “gross national product at factor cost” from the following data by (I) income method and (ii) Expenditure method:

 - ( Rs. In crores) Private final consumption expenditure 1000 Net domestic capital formation 200 Profits 400 Compensation of employees 800 Rent 250 Government final consumption expenditure 500 Consumption of fixed capital 60 Interest 150 Net current transfer from rest of the world (-) 80 Net factor income from abroad (-) 10 Net exports (-) 20 Net indirect taxes 80

### Explanation

(i) income method: -

Gross national product at factor cost = Profits + Compensation of employees + Rent + Interest + Net factor income from abroad

= 400 + 800 + 250 + 150 + 60 + (-10)

= Rs. 1650 crore

(ii) Expenditure method: -

gross national product at factor cost = Private final consumption expenditure + Net domestic capital formation

… (24 more words) …

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