CBSE Class-12 Economics: Questions 458 - 470 of 523

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Question number: 458

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to losses in the long run if the firms are free to leave the industry.

Explanation

  • In the long run if the firms are free to leave the industry in that individual firms earns only normal profits and zero profits for economics. When exit firm operate at the point where minimum of long run average cost curve is contiguous price line. In this is form it… (47 more words) …

Question number: 459

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Define ‘Marginal Rate of Transformation’.

Question number: 460

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Distinguish between elastic and inelastic supply

Explanation

Characteristics

Elastic Supply

Inelastic Supply

Definition

Elastic supply means increase in price causes a greater percent increase in supply.

Inelastic supply. This means that an increase in price causes a less percent increase in supply. It has a price elasticity of supply of less than 1.

How many price elasticity?… (37 more words) …

Question number: 461

» National Income and Related Aggregates » Types of Goods

Essay Question▾

Describe in Detail

What is the likely effect on the study of good if the prices of the inputs used in production of that good fall? Explain.

Explanation

Input of price is used for production of shares in negative relationship and supply of good. When input price is decreased then its production cost also decreases. The producers increase the production of a good because of decrease in input price and supply of good increases.

This is supply curve digram.

This Is Supply Curve… (44 more words) …

Question number: 462

» Balance of Payments » Foreign Exchange Rate

Essay Question▾

Describe in Detail

When exchange rate of foreign currency falls, its demand rises. Explain how.

Explanation

When exchange rate of foreign currency falls which means that foreign currency depreciates the demand for foreign currency increases as it becomes cheaper for the residents of the country like India for example. depreciation of foreign currency leads to increase in demand of it as exports will strike a rise.… (62 more words) …

Question number: 463

» Money and Banking » Commercial Banking System

Essay Question▾

Describe in Detail

Explain the lending functions of commercial banks

Explanation

Functions of commercial banks are as follows:

Primary function: -

(1) Accepting Deposits: Commercial bank accepts various types of deposits from public especially from its clients. It includes saving account deposits, recurring account deposits, fixed deposits, etc. These deposits are payable after a certain time period.

(2) Making Advances: The… (141 more words) …

Question number: 464

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between fixed cost and variable cost giving example.

Explanation

Characteristics

Fixed cost

Variable cost

Definition

Fixed cost means it is indirect cost it is not dependent on level of goods or services.

Variable cost means cost of labor, material and change in volume of production.

Behavior

It is constant for given time period

It changes with change in the… (8 more words) …

Question number: 465

» Money and Banking » Money and Functions

Essay Question▾

Describe in Detail

Explain the ’medium of exchange’ function of money.

Explanation

Money is a particular type of asset in an economy that people use to buy goods and services from other people or businesses. A medium of exchange is something that buyers will exchange with a seller when they want to purchase goods or services from the seller. While many things… (37 more words) …

Question number: 466

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Complete the following table:

Price ( Rs. )

Output (Units)

Total Revenue (Rs)

Marginal Revenue ( Rs. )

-

1

6

-

4

-

-

2

-

3

6

-

1

-

-

(-) 2

Explanation

Price ( Rs. )

Output (Units)

Total Revenue (Rs)

Marginal Revenue ( Rs. )

6

1

6

6

4

2

8 (4 × 2)

2

2

3

6

-2 (6 - 8)

1

4

4 (1 × 4)

(-2)

Question number: 467

» Balance of Payments » Foreign Exchange Rate

Short Answer Question▾

Write in Short

What is fixed exchange rate System?

Question number: 468

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to the profits in the long run if the firms are free to enter the industry.

Explanation

  • The firms enter the industry when they find that the existing firms are earning super normal profits. Their entry raises output of the industry, brings down the market price and thus reduce profits. The entry
  • continues till profits are reduced to normal (or zero) The firms start
  • leaving the industry… (26 more words) …

Question number: 469

» Producer Behaviour and Supply » Supply » Determinants of Supply

Short Answer Question▾

Write in Short

Define ‘aggregate supply’

Question number: 470

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Giving reason, explain how the following are treated in estimating national income:

(i) wheat grown by a farmer but used entirely for estimating for family’s consumption.

(ii) Earning of the shareholders from the shares.

(iii) Expenditure by government on providing free education.

Explanation

(i) The imputed value of wheat grown for self consumption included in estimation of national income and its reason is in this case farmer caught in consumption but not a market transaction. So, wheat grown by a farmer but used entirely for estimating for family’s consumption.

(ii) Earning of the… (75 more words) …

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