CBSE Class-12 Economics: Questions 439 - 449 of 523

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Question number: 439

» Balance of Payments » Foreign Exchange Rate

Essay Question▾

Describe in Detail

Explain two sources each of demand and supply of foreign exchange.

Explanation

Two sources of demand for foreign exchange is given below: -

(1) Import payments: - Foreign exchange is demanded for imports and it is for purchasing goods and services from world.

(2) Gifts and Grants: - other sources of demand for foreign exchange is sending gifts and grants to the… (50 more words) …

Question number: 440

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

Essay Question▾

Describe in Detail

From the following information about economy, calculate (I) its equilibrium level of national income and (ii) saving at equilibrium level of national income.

Consumption function: C = 200 + 0.9 Y

(Where C = consumption expenditure and Y = national income)

Investment expenditure: I = 3000.

Explanation

(i) its equilibrium level of national income

Y = C + I

Y = 200 + 0.9Y + 3000

Y-0.9Y = 3200

Y= 32000.1 =32000

(ii) saving at equilibrium level of national income

Y = C + I

32000 = C + 3000

C = 32000 – 3000

C… (2 more words) …

Question number: 441

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

Short Answer Question▾

Write in Short

Define Bank rate.

Question number: 442

» Introductory Microeconomics » What Is an Economy?

Essay Question▾

Describe in Detail

Why do problem related to allocation of resources arise in an economy? Explain.

Explanation

The problem of allocation of resources arise because of scarcity of resources in relation to human needs. Human needs are never ending and the means of resources can never meet our wants as they are scarce in nature and have alternative uses. As the means are scarce and they have… (14 more words) …

Question number: 443

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

Essay Question▾

Describe in Detail

Complete the following table:

Income

Marginal Propensity to consume

Saving

Average propensity to save

0

-

-90

-

100

0.6

-

-

200

0.6

-

-

300

0.6

-

-

Explanation

Income

Marginal Propensity to consume

Saving

Consumption

Average propensity to save

0

-

-90

90

-

100

0.6

-50 (100 - 150)

150 (90 + 60)

-0.5

200

0.6

-10 (200 - 210)

210 (150 + 60)

-0.05

300

0.6

30 (300 - 270)

270 (210 + 60)

0.1

Marginal… (85 more words) …

Question number: 444

» Market and Price Determination » Monopoly

Short Answer Question▾

Write in Short

Define monopoly

Question number: 445

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

Give the meaning of factor income to abroad and factor income from abroad. Also give example of each.

Explanation

Factor income to abroad: - In this payments are made to foreign citizens in native country. Example: salary is payed to US citizen in India by Indian company as income to abroad.

Factor income from abroad: - In this payment is accepted by citizen of native country a person who… (20 more words) …

Question number: 446

» Balance of Payments » Determination of Exchange Rate in a Free Market

Essay Question▾

Describe in Detail

State any two problems of barter system of exchange. How does money solve them?

Explanation

The two problems of barter system of exchange are given below:

a. Both sale and purchase are generated together involving double coincidence of wants.

b. There is no common unit of exchange in a barter system so, exchange remains limited.

Use of money overcomes problem of barter system of exchange… (29 more words) …

Question number: 447

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

what is revenue deficit? What are its implications?

Explanation

Revenue deficit is generated when Revenue Receipts of government are less than Revenue Expenditure of the government.

Revenue deficit is related to revenue expenditure and revenue receipts of the government.

Revenue receipts and revenue expenditures are related to high revenue deficit and it gives some error to the government to… (101 more words) …

Question number: 448

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

Short Answer Question▾

Write in Short

Give meaning of deficient demand.

Question number: 449

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain ‘consumption function’ with the help of a schedule and diagram.

Explanation

Consumption function is relation between consumption expenditure and disposable income. It is represented as

C = f (Yd) it

means,

c is consumption expenditure,

Yd is disposable income

F means functional relationship between consumption expenditure and disposable income.

Consumption expenditure has divided into two parts.

(1)… (102 more words) …

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