CBSE Class-12 Economics: Questions 415 - 424 of 523

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Question number: 415

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

Essay Question▾

Describe in Detail

How is the price elasticity of demand of a commodity affected by the number of its substitutes? Explain.

Explanation

The price of demand for good is related to number of substitutes of good available. High substitutes available for a good. Higher its price elasticity of demand.

The price elasticity of demand for good is elastic when good has more number of substitutes present. Increase in price of good pushes… (72 more words) …

Question number: 416

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Define fixed cost

Question number: 417

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

Short Answer Question▾

Write in Short

What is meant by excess demand in macroeconomics?

Question number: 418

» Producer Behaviour and Supply » Supply » Supply Curve

Essay Question▾

Describe in Detail

Explain the effect of fall in prices of other goods on the supply of a given good

Explanation

A change in price of other goods can increase and decrease the supply of one good. The other good can be of two types either substitute or complementary:

(1) Substitute Goods: - Substitute goods are those goods which can be used as substitutes of each other. For example tea and… (57 more words) …

Question number: 419

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

Essay Question▾

Describe in Detail

Complete the following table:

Income

Consumption

Marginal Propensity to save

Average Propensity to Consume

0

12

20

26

-

-

40

40

-

-

60

54

-

-

Explanation

Income

(Y)

Consumption (C)

Saving

(S) = Y - C

Marginal Propensity to save (MPS)

Average Propensity to consume

(APC)

0

12

-12

-

-

20

26

-6

-6/20 =-0.3

26/20 = 1.3

40

40

0

6/20 = 0.3

40/40 = 1.0

60

54

6

6/20 = 0.3

54/60 =… (59 more words) …

Question number: 420

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

List the items of current account of balance of payments account. Also define ‘Balance of trade’.

Explanation

Thecurrent account of balance of payments is account which maintains records of imports and exports of goods and services

Components of Current Account of Balance of trade:

(1) Export and import of goods: - Export of goods are recorded by positive items they result in inflows of foreign exchange in… (104 more words) …

Question number: 421

» Producer Behaviour and Supply » Production Function

True-False▾

Following Statement is true or false:

Total product will increase only when marginal product increase

Question number: 422

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Explain the basis of classifying government receipts into revenue receipts and capital receipts. Give two example of each.

Explanation

Revenue receipts: - Do not create liability and do not lead to reduction in assets.

Example: (i) receipts from tax revenue (ii) receipts from non-tax revenue

Capital receipts: - Create liability and lead to reduction in assets.

Example: (i) recoveries of loans (ii) receipts through disinvestment.

Question number: 423

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Why is average total cost greater than average variable cost?

Question number: 424

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

From the following schedule find out the level of output at which the producer is in equilibrium. Give reason for your answer.

Output (units)

Price ( Rs. )

Total cost

1

24

26

2

24

50

3

24

72

4

24

92

5

24

115

6

24

139

7

24

165

Explanation

In this Total Revenue - Total Cost approach producer is in equilibrium at level of output difference between Total Revenue - Total Cost

Output (units)

Price ( Rs. )

Total cost (TC)

Total Revenue (Rs)

TR = price × output

TR -TC

1

24

26

24

-2

2

24

50… (68 more words) …

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