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

Suppose the price at which the equilibrium is attained in exercise 5 is above the minimum average cost of the firms constituting the market. Now if we allow for free entry and exit of firms, how will the market price adjust to it?

At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market? How is the equilibrium quantity determined in such a market?

If the price of a substitute Y of good X increases, what impact does it have on the equilibrium price and quantity of good X?

What are high yielding variety (HYV) seeds?

What is marketable surplus?

Explain the need for land reforms implemented in the agriculture sector.  

Why was green revolution implemented? Explain in brief.

Explain the statement that green revolution enabled the government to procure sufficient food grains to build its stocks that could be used during times of shortage.

While subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies in the light of this fact.

Why, despite the implementation of green revolution, 65 per cent of our population continued to be engaged in the agriculture sector till 1990?

What do you mean by agricultural marketing?

Distinguish between ‘Green Revolution’ and ‘Golden Revolution’.

Explain the role of non-farm employment in promoting rural diversification.

Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.

Suppose the demand and supply equations of a commodity X in a perfectly competitive market are given by :
Q_d = 1700 – 2P
Q_s = 1300 + 3P
Calculate the value of equilibrium price and equilibrium quantity of the commodity X.

Answer the following question.
Define net exports. How is it different from the net factor income from abroad?

State whether the following statement is true or false. Give reasons for your answer :
When the equilibrium price is greater than the market price there will be excess supply in the market.

Answer the following question:
The market for a good is in equilibrium. How would an increase in an input price affect the equilibrium price and equilibrium quantity, keeping other factors constant? Explain using a diagram.

Agriculture sector contributed ______ percent to the GDP in 1990-91.