Producer Behaviour and Supply [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 143 - 150 of 174

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Question 143

Statement True-False▾

When there are diminishing returns to a factor, total product always decreases.

Choices

Choice (4)Response

a.

True

b.

False

c.

Question does not provide sufficient data or is vague

d.

None of the above

Edit

Question 144

Statement True-False▾

When marginal cost rises, average cost will also rise.

Choices

Choice (4)Response

a.

True

b.

False

c.

All of the above

d.

None of the above

Edit

Question 145

Describe in Detail Subjective▾

Given below is cost and revenue schedule of a producer. At what level of output is producer in equilibrium? Give reasons for your answer.

Output (Units)Price (₹)Total cost (₹)
11013
21022
31030
41038
51047
61057
71071
Edit

Explanation

In this cost and revenue schedule of a producer is given

Output (Units)Price (₹)Total cost (₹)Total Revenue

TR = Price Output

Profit = TR - TC
1101310-3
2102220-2
31030300
41038402
51047503
61057603
71071701

In this schedule Total Revenue and Total cost is maximum at 5th and 6th unit of output so, the producer attain equilibrium at 5th unit of outp…

… (25 more words) …

Question 146

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) …

Question 147

Describe in Detail Subjective▾

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

Edit

Explanation

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

C = f ) it

means ,

c is consumption expenditure,

is disposable income

F means functional relationship between consumption expenditure and disposable income.

Consumption expenditure has divided int…

… (45 more equations, 3 figures) …

Question 148

Describe in Detail Subjective▾

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

Edit

Explanation

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

C is consumption expenditure,

is disposable income

F means functional relationship between consumption expenditure and disposable incom…

… (61 more equations, 4 figures) …

Question 149

Write in Short Short Answer▾

What is ‘market supply’ ?

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Question 150

Describe in Detail Subjective▾

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

Edit

Explanation

(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

(ii) Capital Expenditure:- capital exp…

… (35 more words, 1 figure) …