CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics: Questions 450 - 457 of 523

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Question number: 450

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Given market equilibrium of a good, what are the effects of simultaneous increase in both demand and supply of that good on its equilibrium price and quantity?


If increase in demand affects prices and quantities we assume that there is increase in income of working class.

Their demand for cloth This will raise the equilibrium price and quantity of cloth and the supply curve of cloth is unchanged in figure. It is to understand the increase in

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Question number: 451

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain ‘consumption function’ with help of a schedule. Also record marginal propensity to consume in the schedule.


This consumption function is a relation between consumption expenditure and disposable income it is called consumption function. It is represented as C = f Equation ) it means

c is consumption expenditure,

Equation is disposable income

F means functional relationship between consumption expenditure and disposable income.

Consumption expenditure has divided

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Question number: 452

» Producer Behaviour and Supply » Supply » Market Supply

Short Answer Question▾

Write in Short

What is ‘market supply’?

Question number: 453

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Calculate ‘National income’ and ‘Private income’ from the following data:

Calculate National income and Private income

Find National income and Private income


(in Crores)

Net current transfer to the rest of the world


Private final consumption expenditure


National debt interest


Net exports

(-) 20

Current transfer from government


Net domestic product at factor cost accruing to government


Government final consumption expenditure


Net indirect tax


Net domestic capital formation


Net factor income from abroad



National income = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation + Net factor income from abroad + Net exports - Net indirect tax

= Equation

= Rs. 730 crore

Private income = National income + National debt interest + Current transfer from government

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Question number: 454

» Government Budget and the Economy » Government Budget

Short Answer Question▾

Write in Short

Define government budget.

Question number: 455

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.


(i) Revenue Expenditure: -

Revenue expenditure refer to the expenditure which creates any asset and do not cause reduction in liability of government. It is recurring in nature. it is normal function of government and the provision for service.

Example: - pensions, interests, expenditure etc.

The revenue expanditure.

The Revenue Expanditure.

This image

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Question number: 456

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

Essay Question▾

Describe in Detail

Explain ‘banker to the government ’ function of central bank


  • The central bank function as a Banker to the government: -
  • As a banker to government, the central bank function for government as commercial bank. It handles the accounts of central government and it receive deposits from government and it collects cheques and drafts deposit from government account.
  • The central
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Question number: 457

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

Distinguish between balance of trade and balance of current account.



Balance of trade account

Balance of current account

What is in includes?

Balance of trade account includes visible items of trade

Balance of current account includes transaction of items

What items are available?

export and import items are available.

visible items and invisible items are available.

What it records?

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