CBSE Class-12 Economics: Questions 471 - 480 of 523

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Question number: 471

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

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

Explanation

The functional relationship between saving and income is called saving function it is represented as s =- S + s Yd

Here, S means autonomous saving

S represent Marginal propensity to save

Yd represents disposable income.

Income and saving function diagram

This image is of Income… (86 more words) …

Question number: 472

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

Essay Question▾

Describe in Detail

In an economy an increase in investment leads to increase in national income which is three times more than the increase in investment. Calculate marginal propensity to consume.

Explanation

Increase in income = 3 times more than the increase in investment.

Here, 3 times more than increase in investment = 3 times of investment + Initial incestment

K = 3

We know that K= 11MPC

3= 11MPC

3(… (39 more words) …

Question number: 473

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Explain the central problem of ‘choice of technique’.

Explanation

The problem of choice of technique is also known as the problem of how to produce. As resources are scarce and it has alternative uses the problem of choice of technique of production arises. There are two techniques of production:

1 Labor intensive technique: Labor intensive technique is used in… (65 more words) …

Question number: 474

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

Essay Question▾

Describe in Detail

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

Explanation

This functional relation between saving and income is called saving function it is represented as s = S +sYd

Here, S means autonomous saving

S represent Marginal propensity to save

Yd represents disposable income.

Income and saving function diagram

This image is of… (90 more words) …

Question number: 475

» Money and Banking » Commercial Banking System

Short Answer Question▾

Write in Short

What is Commercial Bank?

Question number: 476

» National Income and Related Aggregates » Types of Goods

Essay Question▾

Describe in Detail

Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used in production of that good are increase simultaneously and in the same proportion.

Explanation

The behavior of Total Product (TP) is technically Returns to Scale. There are three possibilities:

(1) TP rises in greater proportion than the rise in inputs it is known as Increasing Returns to Scale. For example: Suppose there are only two inputs labor (L) and Capital (K). Suppose 1K +… (110 more words) …

Question number: 477

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between Average cost and Marginal cost giving an example.

Explanation

Characteristics

average cost

marginal cost

Definition

average cost is the cost of producing amount of output divided by the cost per unit

When a producer increases its output by one unit, there is a change in the total cost of producing that commodity this change in cost is known as… (120 more words) …

Question number: 478

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

Essay Question▾

Describe in Detail

Explain producer’s equilibrium using a schedule. Use total cost and total revenue approach.

Explanation

In this approach a producer strikes his equilibrium when he maximizes his profit at the same cost. There is a big difference between Total Revenue and Total Cost. Schedule of Total Revenue and Total cost and how equilibrium is worked out is given below in example

Output

TR

TC

Profit… (109 more words) …

Question number: 479

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Explain the implications of the following:

(i) The feature ‘differentiated product’ under monopolistic competition.

(ii) The feature ‘large number of sellers’ under perfect competition.

Explanation

(i) The feature ‘differentiated product’ under monopolistic competition.

some generation in position to perform some degree of monopoly with product differentiation.

Product differentiation is based on differentiating the products on brand, color, size. The product of firm is close and it is not perfect substitute of other firm.

This implication… (80 more words) …

Question number: 480

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Distinguish between perfectly elastic and perfectly inelastic supply.

Explanation

Characteristics

perfectly elastic supply

perfectly inelastic supply

Definition

Perfectly elastic supply occurs if any decrease in product price.

Perfectly inelastic demand occurs when buyers have no choice in the consumption of a good.

What affected?

Perfectly elastic means that quantity supplied is affected by any change in price.

Perfectly inelastic… (76 more words) …

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