CBSE (Central Board of Secondary Education) Class-12 Economics: Questions 438 - 446 of 522

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Question 438

Describe in Detail Subjective▾

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

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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 world.

The following are two sources of supply of foreign exchange:-

(1)…

… (36 more words) …

Question 439

Describe in Detail Subjective▾

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.

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Explanation

(i) its equilibrium level of national income

Y = C + I

Y = 200 + 0.9Y + 3000

Y-0.9Y = 3200

Y =

… (15 more words) …

Question 440

Write in Short Short Answer▾

Define Bank rate.

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Question 441

Describe in Detail Subjective▾

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

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Explanation

The problem of allocation of resources arise because of scarcity of resources in relation to hu…

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Question 442

Describe in Detail Subjective▾

Complete the following table:

IncomeMarginal Propensity to consumeSavingAverage propensity to save
0--90-
1000.6--
2000.6--
3000.6--
Edit

Explanation

IncomeMarginal Propensity to consumeSavingConsumptionAverage propensity to save
0--9090-
1000.6-50 (100 - 150)150 (90 + 60)-0.5
2000.6-10 (200 - 210)210 (150 + 60)-0.05
3000.630 (300 - 270)270 (210 + 60)0.1

Marginal Propensity to consume =

… (16 more equations) …

Question 443

Write in Short Short Answer▾

Define monopoly

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Question 444

Describe in Detail Subjective▾

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

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Explanation

Factor income to abroad:- In this payments are made to foreign citizens in native country. Examp…

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Question 445

Describe in Detail Subjective▾

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

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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 given below:

(i) with the introduction of money double …

… (20 more words) …

Question 446

Describe in Detail Subjective▾

what is revenue deficit? What are its implications?

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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 cut its expenditure. …

… (85 more words, 6 figures) …