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

Real GDP is the total value of goods and services calculated at ‘constant’ or base price level. Nominal . GDP is the total value of goods and services calculated at ‘current’ price level.
Real GDP is a better index of welfare of the people. When Real GDP rises, flow of goods and services tends to rise, other factors remaining constant. This means greater availability of goods per person, implying higher level of welfare. Also real GDP facilitates periodic comparison of physical output.

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Price elesticity of demand is found to be -2. Price falls from rupees 10per units

Posted by Namgyal Lepcha 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Aditya Sahu 6 years, 11 months ago

EDp<1 graph shows upward from left to right

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Explain the problem of 'For whom to produce' in brief...

Posted by H!Mαη$Hμ Ұαδαυ ✔️ 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Harvinder Ahlawat 6 years, 11 months ago

Our economy are two sections : richer section ,poor sections . If goods are produced for poor sections , the profits of the producers low ,low profits means low investment ,low investment mean low Gdp growth . So the producers are produce for rich section that maximize profits . High profit means people are ready to invest .And GDP grows☺☺☺

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Tanaya Mandal 6 years, 11 months ago

This problem refers to selection of category of people who will ultimately consume the goods, that is weather to produce goods for more poor and less rich or more rich and less poor.

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Princi Singh 6 years, 11 months ago

The solution of this problem is very simple commodity can be consumed only by people who have more purchasing power. Price mechanism determines the income of the workers, i.e.; purchasing power. The purchasing power of the owner of capital is determined in the same way. Thus, when the price of every commodity and every factor of production are determined, the third problem will be solved.

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Define economics and explain the central problem of an economy releted to allocation of respurces

Posted by Dayaram Saharan 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Gaurav Seth 6 years, 11 months ago

Economics is a science that studies human behavior which aims at allocation of scarce resources in such a way that consumer can maximise their satisfaction, producers can maximise their profits and society can maximise its social welfare. It is about making choice in the presence of scarcity.

<hr />Central Problems of an Economy
The central problem of “what to produce” refers to which goods and services will be produced in an economy and in what quantities. An economy has to produce those goods and services where there will be maximum social utility. This problem is studies under price theory.The central problem of “how to produce” refers to what technique of production (i.e.., labour intensive or capital intensive) should be used to produce goods. An economy has to select that technique which maximizes the output at minimum cost. This problem is studies under theory of production.The central problem “for whom to produce” is related to distribution of produced goods and services(i.e.., income and wealth) among factors of production in the form of rent, wages, interest and profit.This is explained under the theory of distribution.

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What is giffin goods and how it is different from inferior goods

Posted by Antima Agarwal 6 years, 11 months ago

CBSE > Class 12 > Economics

4 answers

Antima Agarwal 6 years, 11 months ago

Prena goyal but inferior goods are also low inquality ?

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Antima Agarwal 6 years, 11 months ago

Tanya mandal why all giffen goods are inferir and wll inferior are not necessarily giffin

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Tanaya Mandal 6 years, 11 months ago

Inferior good is a good whose demand increases when the consumer's income decreases and whose demand decreases as the consumer's income increases. ... The difference between the two is that while all giffen goods are inferior, all inferior goods are not necessarily giffen. Inferior goods ought to have a costly substitute.

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Prerna Goyal 6 years, 11 months ago

Giffen goods is that type of good which is inferior in quality and on the giffen good law of demand is not operate it's graph is upward sloping

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What is regional disparity

Posted by Nihal Bhut 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Princi Singh 6 years, 11 months ago

Regional disparity means unbalanced spatial structures in some region or in different regions. Regional disparities are manifested in different conditions of life as well as in unequal economic and development potential. A good example of spatial disparity is the contrast between urban and rural areas.

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Money today is easily portable. Elaborate

Posted by Jyoti Sharma 6 years, 11 months ago

CBSE > Class 12 > Economics

0 answers

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What is price celling?

Posted by Tanaya Mandal 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Princi Singh 6 years, 11 months ago

Price ceiling is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply. It has been found that higher price ceilings are ineffective. Price ceiling has been found to be of great importance in the house rent market.

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Priyanka Sachdeva 6 years, 11 months ago

Setting a maximum price above the market equilibrium price for poor n needy to consume and afford required goods.. by the govt. Is called price ceiling

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Explain law of demand

Posted by Aradhya Bohre 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Harvinder Ahlawat 6 years, 11 months ago

Law of demand states that the demand of a commodity increases when price is decreases .when demand decreases price increases. Their is a inverse relationship between demand and price

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Tanaya Mandal 6 years, 11 months ago

Law of demand states the inverse relationship between price and quantity supplied keeping othar factor constant(ceteris paribus)

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Why indifference curve negatively sloped

Posted by Fardeen Khan 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

H!Mαη$Hμ Ұαδαυ ✔️ 6 years, 11 months ago

Because to increase production of one good we have to decrease production of another good hence to produce one good we have to sacrificed some units of another good

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Market for a good is in equilibrium.there is simultaneous decrease both in demand and supply of the good. Explain its effect on market price

Posted by Aditya Singh 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Gaurav Seth 6 years, 11 months ago

With a simultaneous increase in both the demand and supply, it is possible that the equilibrium market price may not change. This happens under a situation where both demand and supply increase in the same proportion . In such a case, only the equilibrium quantity rises while, the equilibrium price remains unchanged.

In the above diagram, decrease in demand=decrease in supply. Equilibrium pint shifts from E1 to E2, but price remains constant.

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Explain the role of bank rate in correcting inflationary gap in an economy.

Posted by Aditya Singh 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Yogita Ingle 6 years, 11 months ago

Inflationary Gap-Inflationary gap is the excess of AD over and above its level required to maintain full employment equilibrium in the economy. Inflationary gap generates extra pressure on the existing flow of goods and services at the level of full employment. Accordingly, prices tend to rise. The output will not increase.

Repo rate is the rate at which the Central Bank lends money to the Commercial Banks. To correct the situation of Inflationary Cap, Repo Rate is increased. As a follow-up action, the Commercial banks raise the market rate of interest (the rate at which the Commercial Banks lends money to the consumers and the investors). This reduces demand for credit. Consequently, consumption expenditure and investment expenditure are reduced. Implying a reduction in Aggregate Demand, as required to correct Inflationary Gap.

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Construction of statue of unity , how it will affect national income

Posted by Aditya Singh 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Saurabh Mishra 6 years, 11 months ago

Ppc move rightwards because production increase

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Digita India programme how it will affect ppc

Posted by Aditya Singh 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Saurabh Mishra 6 years, 11 months ago

Ppc move rightwards because production increase

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Guys....can we use black pen in exams to make ppr impressive???

Posted by Nav Dhillon 6 years, 11 months ago

CBSE > Class 12 > Economics

4 answers

Harvinder Ahlawat 6 years, 11 months ago

Noo

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Madhu Singh 6 years, 11 months ago

Yes you use black pen but for speed you use black ball pen

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Babita Sharma 6 years, 11 months ago

Yes, it makes your answer sheet more presentable but black ball pen is advisable.

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Sumit Kumar 6 years, 11 months ago

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Why we use 2nd condition of MR MC approach for producer equilibrium?

Posted by Pawan Grover 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Prerna Goyal 6 years, 11 months ago

Because in this situation producer's cost is more than the revenue or profit. If it is not apply producer will not get any point on which he can stop his production

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Pawan Grover 6 years, 11 months ago

Reason?

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Ravish Choudhry 5 years, 8 months ago

Mc must be raising

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All products may not contribute equally to the economic welfare . Explain with ex

Posted by Atul Kr 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Nav Dhillon 6 years, 11 months ago

There are 2 types of goodz consumer and capital .....capital goods leads to increase in production capacity and thus increase in output which further lead to increase in economic welfare or GDP growth....while consumer goods yo social welfare by satisfying wants .....

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Honey 8 6 years, 11 months ago

I want this ans too! Someone please tell.

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Impact on demand of a normal good 'x' if - price of its complementary good falls

Posted by Kaju Badam 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Madan Batra 6 years, 11 months ago

As we know that there is inverse relation between price and demand of complimentery goods. Suppose there are two complimentery goods Ink and Pen if price of ink falls the demand of pen will rise ( because it,s price will fall). and vice versa

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Ritu Manon 6 years, 11 months ago

Demand will rise

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Riya Jain 6 years, 11 months ago

The demand of "x" will rise

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Who is a price taker

Posted by Lovely Tiwari 6 years, 11 months ago

CBSE > Class 12 > Economics

4 answers

Madan Batra 6 years, 11 months ago

A firm is a price taker in perfect competetion( and the industery is a price maker)

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Riya Jain 6 years, 11 months ago

Consumer

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Ritu Manon 6 years, 11 months ago

A firm is a price taker and industry is a price maker

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Abcd 1234 6 years, 11 months ago

person

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Explain what are the changes that will take place in an economy when planned investment is not equal to planned saving?

Posted by Kunal Gautam 6 years, 11 months ago

CBSE > Class 12 > Economics

2 answers

Ritu Manon 6 years, 11 months ago

When planned investment is not equal to planned saving there are two conditions either I is greater than S or I is less than S . When I is greater than S it means aggregate demand is more than AS. So inventory decreases as a result there is more profit to producer. Producer produces more which inturn increases income , output&employment.vice versa is the case when I is less thanS

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Abhishek Pandey 6 years, 11 months ago

Pta ni

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Explain why production possibility curve is concave to the point of origin

Posted by Akash Singh 6 years, 11 months ago

CBSE > Class 12 > Economics

4 answers

Babita Sharma 6 years, 11 months ago

It's due to increasing Marginal Rate of Transformation .MRT increases because it is assumed that no resources are equally efficient in production of all goods. As resources are transfrered for production of one good to another, less and less efficient resources have to be employed. So, this raises the cost and also the MRT.

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Nav Dhillon 6 years, 11 months ago

MRT and MOC are same .u can use either moc or mrt.....

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Ritu Manon 6 years, 11 months ago

Because of increasing MOC

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Siddharth Arya 6 years, 11 months ago

It is due to MRT or MOC

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Labour absorbing technology is given up in prefrence to capital intensive technology. State its economic value in the context of production possibility frontier for the domestic economy.

Posted by Babita Sharma 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Madan Batra 6 years, 11 months ago

This is related to how to produce in which there are two techniques of production 1. labour intensive technique 2. capital intensive technique 1. More labour is used 2. more capital is used. Labour intensive tech. is given more prefrence because it provide employment opportunities ( as unemployment is the biggest issue in our countery) and in context of PPC if we are suffering in unemployment means that we are somewhere inside the ppc and due to prefrence is given to labour intensive technique there will be employment generation and we move towards the ppc.

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Implications of interdependence in oligopoly

Posted by Sagar Jotwani 6 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Simran Khan 6 years, 11 months ago

In oligopoly firms are very strong due to there financial capacity and performance that they depend upon each other . Firms chase the policies of each other so that they can servive in the market with there own share.

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Apple crop destroyed due to bitter cold and its price soared in delhi explain wih its economic thery

Posted by Harneet Kaur 6 years, 11 months ago

CBSE > Class 12 > Economics