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

When is a firm called ‘price-taker’?

Can you think of any commodity on which price ceiling is imposed in India? What may be the consequence of price-ceiling?

Answer the following question.
Explain the meaning and implications of the maximum price ceiling and minimum price ceiling.

Define cost.

Define externalities. Give an example of negative externality. What is its impact on welfare?

Give two examples of fixed costs.

Define fixed cost. Give an example.

Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.

Government spends on child immunization programme. Analyse its impact on Gross Domestic Product and welfare of the people.

What is the behaviour of (a) Average Fixed Cost and (b) Average Variable Cost as more and more units of a good are produced?

If the Real GDP is Rs400 and Nominal GDP is Rs450, calculate the Price Index (base = 100).

Define price floor. Explain the implications of price floor.

Write down some of the limitations of using GDP as an index of welfare of a country.

Can there be some fixed cost in the long run? If not, why?

Answer the following question.
In the given diagram, OP is the market-determined price, and OP₁ is the price fixed by the government.

Answer the following question.
Gross Domestic Product (GDP) Does Not Give Us a Clear Indication of Economic Welfare of a Country. "Defend Or Refute the Given Statement with Valid Reason.

Answer the following question.
Define Price Floor. State the likely consequence of this type of intervention by the government.

Do you agree with the given statement? Give valid reasons in support of your answer.

"Higher Gross Domestic Product (GDP) means greater per capita availability of goods in the economy."

Explain how ‘Non-Monetary Exchanges’ impact the use of Gross Domestic Product as an index of economic welfare.

Discuss briefly the concept of 'Externalities', with suitable example.