Income Determination Important Questions for class 12 economics Short-run Equilibrium Output 1. Short-run According to JM Keynes, ‘A period of time during which level of output is determined exclusively by the level of employment in the economy, is termed as short-run.’ 2. Equilibrium Output It refers to the level of output where the Aggregate Demand is equal to the … [Read more...]
Important Questions for class 12 economics Problems of Deficient and Excess Damand
Income Determination Important Questions for class 12 economics Problems of Deficient and Excess Damand 1. Full Employment Equilibrium In an economy, when AS = AD or S = I alongwith fuller utilisation of labour force, the economy is said to be in full employment equilibrium. 2. Under Employment Equilibrium In an economy, when AS = AD or S = I but without the fuller … [Read more...]
Important Questions for Class 12 Economics Concept of Cost Function
Production and Costs Important Questions for Class 12 Economics Concept of Cost Function 1.Cost It refers to the expenditure incurred by a producer on the factor as well as non-factor inputs for a given amount of output of a commodity. 2.Cost Function A cost function shows the functional relationship between output and cost of production. It is given as C = … [Read more...]
Important Questions for Class 12 Economics Utility,Total Utility , Marginal Utility and its Law
Theory of Consumer Behaviour Important Questions for class 12 Economics Utility, Total Utility, Marginal Utility and Its Law 1.Consumer The one who takes decisions about what to buy for the satisfaction of wants, both as an individual or as a member of a household, is called a consumer. 2.Utility The want satisfying power of a good is called utility. 3.Cardinal … [Read more...]
Important Questions for Class 12 Economics Market Equilibrium
Important Questions for Class 12 Economics Market Equilibrium 1.Market Equilibrium It refers to a situation of market in which market demand for a commodity is equal to its market supply, i.e. a situation, which is stable. 2.Equilibrium Price It is the price at which market demand is equal to market supply. 3.Equilibrium Quantity It is the quantity which corresponds to … [Read more...]