CBSE > Class 12 > Economics | CBSE Board | Homework Help

In the central problem how to produce, there is the situation of choice of technique i.e. Capital intensive or labour intensive. In capital intensive technique, by the use of the capital the growth can be done faster but it led to reduce employment for labourers. On the other hand, by the use of the labour intensive technique,the problem of unemployment can be sort out but at a higher cost. Here the growth of economy is slow.

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What is price elasticity of demand? A consumer purchases 16 units of a good at a price 8 per unit. The price elasticity of demand for the good is (-)1.how many unit the consumer will purchase at price of 9 per unit . calculate by percentage method.

Posted by Naznin Khatoon 6 years, 11 months ago

CBSE > Class 12 > Economics

0 answers

ANSWER

When price rises the supply of foreign exchange also rises? Explain???

Posted by Kesar Kansal 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

J K 6 years, 11 months ago

Every foreign currency holder starts selling currency at increasing price to make profit

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Ishita Arora 6 years, 11 months ago

This is because of law of supply there is positive relationship between own price and supply

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Explain relation between MPS and investment multiplier with the help of diagram and schedule??

Posted by Kesar Kansal 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Pragati Aggarwal 6 years, 11 months ago

There is the inverse relation between investment Multiplier and mps

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Pragati Aggarwal 6 years, 11 months ago

K= 1/ MPS

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Average revenue is equal to price? Explain

Posted by Kesar Kansal 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Atul Dharnia 6 years, 11 months ago

Ar=total revenue/quantity,(Total Revenue=Price*Qt.) then, Ar=Price*Qt./Qt.,,,,then Qt cancel with Qt Ar=Price Hence proved

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Pragati Aggarwal 6 years, 11 months ago

AR=PRICE=MR only occurs in perfect competition market. And for your kind information, it is not a concept of producer equilibrium. Acc. to the law of demand, price is the rate at which we purchase some product. In the same way, AR is the rate at which TR changes acc. to quantity i.e. AR= TR/Q. Thus AR is the firms demand curve which indicates the price.

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Zeel Patel 6 years, 11 months ago

Yeas in producer equilibrium concept AR =PRICE=MR

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Meaning of full employment, underemployment,voluntary and involuntary employment

Posted by Sourabh Jain 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Gaurav Seth 6 years, 11 months ago

Full employment refers to a situation in which all those people, who are willing and able to work at the existing wage rate, get work without any undue difficulty.

Involuntary unemployment occurs when a person is willing to work at the prevailing wage yet is unemployed. Involuntary unemployment is distinguished from voluntary unemployment, where workers choose not to work because their reservation wage is higher than the prevailing wage.

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Nuts and bolts are capital goods?why or why not.

Posted by Nitasha Yadav 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Md Ahtesham 6 years, 11 months ago

No. Becoz capital goods are generally of huge costs Also there is dep. Charged on those. So the nuts and bolts are not of huge costs And there is no dep. Charged on it.

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Pallavi Garg 6 years, 11 months ago

No;because nuts and bolts comes under the inventories which is current asset

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Shreya ?? 6 years, 11 months ago

no..as we consider those goods as capital goods which are for more than one year

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Why indifference curve is downward sloping?

Posted by Xyz Abcd 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Krishna Kumar 6 years, 11 months ago

Due to MRS

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Gaurav Mukesh 6 years, 11 months ago

MRSxy is continuously falling.

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Khushi Jain 6 years, 11 months ago

It is so because to gain one more unit of one commodity we have to sacrifice other units of another commodity.

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What is difference between bop and bot

Posted by Mr. Antil 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Yogita Ingle 6 years, 11 months ago

Comparison between BOT and BOP. Briefly BOT is the difference between money value of imports and exports of material goods only whereas BOP is the difference between a country's receipts and payments in foreign exchange. Balance of payments is a wider concept as compared to balance of trade because BOT is just one of the four components of the former. BOT includes only export and import of goods whereas BOP includes (i) export and import of goods (ii) export/import of services (iii) unilateral receipts/payments and (iv) capital receipts/payments. Therefore, BOP represents wider and comprehensive picture of a country's economic transactions with the rest of the world than the Balance of Trade. Both are compared below.

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Define Price Floor. What is the common purpose of fixation of floor price by the government? Explain any one likely consequence of this nature of intervention by the government.

Posted by Rima Prasad 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Shreya ?? 6 years, 11 months ago

floor price refers to that minimum price which farmers must get for their crop. this price is generally higher than equilibrium price level.

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It is assumed in marginal utility theory that utility can be measured in terms of Cardinal number Ordinal number Original number None

Posted by Subarthi Nandy 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Nishu Garg 6 years, 11 months ago

Yes

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Difference between parity value and pegging?

Posted by Kusum Jain 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Pragati Aggarwal 6 years, 11 months ago

In economics, pegging a price, rate or amount implies fixing it at a particular level. ... Parity value or parity price, on the other hand,is a price concept used for commodities or securities. It is used to imply that two assets have an equal value.

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What is parity value?

Posted by Kusum Jain 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Yogita Ingle 6 years, 11 months ago

Parity value: In the context of exchange rate in foreign exchange market, parity value refers to the value of one currency in terms of the other for a given basket of goods and services. If a U.S. dollar buys 50 times the goods and services in India, compared to a rupee, the parity value of a US dollar should be 50 : 1. Accordingly, the exchange rate between rupee and a US dollar ought to be Rs. 50 : 1$. Any change in the parity value would imply a corresponding change in exchange rate.

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Features of monopolistic competition?

Posted by Kusum Jain 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Pragati Aggarwal 6 years, 11 months ago

A large number of sellers: In a market with monopolistic competition, there are a large number of sellers who have a small share of the market. Product differentiation: In a monopolistic competition, all brands try to create product differentiation to add an element of monopoly over the competing products. This ensures that the product offered by the brand does not have a perfect substitute. Therefore, the manufacturer can raise the price of the product without having to worry about losing all its customers to other brands. However, in such a market, while all brands are not perfect substitutes, they are close substitutes for each other. Hence, the seller might lose at least some customers to his competitors. Freedom of entry or exit: Like in perfect competition, firms can enter and exit the market freely. Non-price competition: In a monopolistic competition, sellers compete on factors other than price. These factors include aggressive advertising, product development. better distribution, after sale services etc. Sellers don’t cut the price of their products but incur high costs for the promotion of their goods.

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Yogita Ingle 6 years, 11 months ago

Three features of monopolistic competition are as follows:
(i) Large number of buyers and sellers As under perfect competition, in this form also, there are a large number of buyers and sellers. Also, the size of each firm is small. Each firm has a limited share of the market.
(ii) Product differentiation It is a distinct feature of monopolistic competition. A product is often differentiated by way of trademarks and brand
. names. The differentiated products are close substitutes of each other, like Colgate and closeup toothpaste. Because of product differentiation, each firm can decide its price policy independently, so that each firm has a partial control over price of its product.
(iii) Selling cost Each firm has to incur selling costs (expenditure on advertisement, etc) to promote its sales. This is because there are a large number of close substitutes available in the market.

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Explain the condition of producer equilibrium . 6 marks

Posted by Safi Siddique 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Gaurav Seth 6 years, 11 months ago

The conditions must hold if a profit maximizing firm produces positive output in a competitive market when price is constant’under MR/MC approach is determined where,
(i) MR = MC (ii) MC must be rising

According to Table, both the conditions of equilibrium are satisfied at 4 units of output. MC is equal to MR and MC is rising. MC is more than MR when output is produced after 4 units of output. So, Producer’s Equilibrium will be achieved at 4 units of output. However, MR is equal to MC at 2 units of output also. But, second condition is not fulfilled here.
Let us understand the determination of equilibrium with the help of a diagram:

Producer’s Equilibrium is determined at OQ level of output corresponding to point E as at this point, MC = MR and MC curve cuts MR curve from below. In Figure, output is shown on the horizontal axis and revenue and costs on the vertical axis. Producer’s equilibrium will be determined at OQ level of output corresponding to point E because at this, the following two conditions are met:
(i) MC = MR;
(ii) MC curve cuts the MR curve from below.
When MR > MC, then producer will continue to produce as long as MR becomes equal to MC. It is so because firm will find it profitable to raise the output level.
When MR < MC, then producer will cut down the production as long as MR becomes equal to MC. It is so because firm will find it unprofitable to produce an extra unit. So, it starts reducing the level of output till MR = MC.

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Explain central bank function of lender to the last resort

Posted by Sayam Aggarwal 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Gaurav Seth 6 years, 11 months ago

It means that if a commercial bank fails to get financial accommodation from anywhere, it approaches the Central Bank as a last resort. Central Bank advances loan to such banks against approved securities. By offering loan to the commercial bank in situations of emergency, the Central Bank ensures that:
(i) The banking system of the country does not suffer from any set back.
(ii) Money market remains stable.

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What is balanced budget multiplier

Posted by Elizabeth Benny 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Pragati Aggarwal 6 years, 11 months ago

Balanced Budget Multiplier is the ratio of the change in aggregate output (GDP) to a change in government spending, which is matched by an equal change in taxes

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State the chain effect in different cases of equilibrium?

Posted by Prince Chauhan 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Pragati Aggarwal 6 years, 11 months ago

There are a no. Of chain effects as when demand changes n supply remains constant, when supply curve shifs n demand remains constant and both will change either simultaneously or opposite. There r also the exception cases of chain effect when one of the curve either demand or supply is perfectly elastic or inelastic. So Plz tell the type of chain effect u want to know about it

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Explain the implication of homogeneous product in perfect market

Posted by Naveen Walia 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Mayank Tripathi 6 years, 11 months ago

Under this market goods produced are identical in nature that is it is same in all respect whether it is in colour design or quality etc .

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What is the concept of green GNP?

Posted by Premjeet Singh 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Pragati Aggarwal 6 years, 11 months ago

In the simple words it is the ecofriendly gnp where the development and growth of country is done by taking environmental benifits in consideration. It is the sustainable use of resources.

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Gaurav Seth 6 years, 11 months ago

Green GNP. GNP does not take into consideration the cost in terms of (i) environmental pollution, and (ii) depletion of
natural resources caused by production of output. Mere increase in GNP will not reflect improvement in quality of life if it
increases environmental pollution or reduces available resources for future generations. That is why concept of Green
GNP has been introduced while measuring economic welfare.
Green GNP is defined as "GNP which is indicator of a sustainable use of natural environment and equitable distribution of
benefits of development." This concept denotes the following characteristics (i) Sustainable economic development, i.e.,
development which should not cause environmental degradation (pollution) and depletion of natural resources (ii)
Equitable distribution of benefits of its of development. (iii) Promotes economic welfare for a long period of time.
Expressed in the form of an equation:
Green GNP = GNP - Net fall in stock of national capital.

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Why is demand for water inelastic...???

Posted by Rutika Attarde 6 years, 11 months ago

CBSE > Class 12 > Economics

4 answers

Pragati Aggarwal 6 years, 11 months ago

Bcz it is the highly necessity product which have alternative uses. And have no close substitute.

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Gaurav Mukesh 6 years, 11 months ago

I think so demand for water is inelastic because it has no close substitute.

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Yuvraj Singh Rathore 6 years, 11 months ago

Yes

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Shagun Vishwakarma 6 years, 11 months ago

It is due to necessity.

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Why flatter demand curve show higher elasticity of demand?

Posted by Gaurav Mukesh 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Riya Jain 6 years, 11 months ago

Becoz with the less change in price will affect more change of demand of any commodity.

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Why more if a good purchase when it's price falls?

Posted by Gaurav Mukesh 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Riya Jain 6 years, 11 months ago

To achieve the equilibrium.

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J K 6 years, 11 months ago

Due to law of monotonic preference

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ANSWER

How to record current transfers while calculated national income

Posted by Kaju Kalu 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Pallavi Garg 6 years, 11 months ago

Current tranfers are not to be include only capital transfers are to be kept in mind while calculating national income

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Meaning ofallocation of resource ?

Posted by Shivam Roy 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Gaurav Mukesh 6 years, 11 months ago

Allocation of resourses: To achieve social and economic objectives government can influence allocation of resourses through direct participation tax and subsidies government provide more resorces into socially productive area private sector initiative is not forthcoming,e.g.,public sanitation, rural electrification, education, health,etc.

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Gaurav Seth 6 years, 11 months ago

In economics, resource allocation is the assignment of available resources to various uses. In the context of an entire economy, resources can be allocated by various means, such as markets or central planning.

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Find equilibrium s and equilibrium I when;Y=4,400, MPC=0.75, and c=100

Posted by Devesh Kumar 6 years, 11 months ago

CBSE > Class 12 > Economics