Commerce (English Medium) Class 12 - CBSE Question Bank Solutions for Economics

The multiplier can be expressed as ______

Which factor affects Keynesian Multiplier?

If MPC = 0.5, then multiplier (K) will be ______ 

The theory of employment multiplier was propounded by ______ 

Define agricultural marketing.

"The Government has raised the exemption limit for the payment of Income tax from ₹ 2 lakh to ₹ 2.5 lakh."

If the situation of deficient demand is prevailing in the economy, what will be the impact of this action taken by the government?

'Investment multiplier and Marginal Propensity to Consume are directly related to each other'. Explain with the help of numerical example.

______ is a process, which includes all the activities from sowing till sale of the final produce in the market.

State and elaborate whether the following statement is true or false, with valid arguments:

Agricultural marketing is a process that ensures the transportation of various agricultural commodities only.

Explain the chain effects, if the prevailing market price is below the equilibrium price.

Government insure expenditure to popularize yoga among the masses. Analyses its impact on gross domestic product and welfare of the people.

Giving reason, state whether the following statement is true or false.
When equilibrium price of a good is less than its market price, there will be competition among the sellers.

If the prevailing market price is above the equilibrium price, explain its chain of effects.

An economy is in equilibrium. Find investment expenditure :

National income =1200

Autonomous consumption expenditure=150

Marginal Propensity to consume =0.8

Explain the chain of effects of excess supply of a good on its equilibrium price

X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.

Explain the chain of an effect of excess demand of a good on it equilibrium price.

Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.

Equilibrium price of an essential medicine is too high. Explain what possible steps can be taken to bring down the equilibrium price but only through the market forces. Also explain the series of changes that will occur in the market.

From the data given below about an economy, calculate (a) investment expenditure and (b) consumption expenditure.