NCERT Solutions for Class 12 Macro Economics Chapter-5 Aggregate Demand and Its Related Concepts NCERT TEXTBOOK QUESTIONS SOLVED Question 1. What is marginal propensity to consume? How is it related to marginal propensity to save?[3-4 Marks] Answer: (i) The ratio of change in consumption (C) to change in income (Y) is known as marginal propensity to…
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NCERT Solutions for Class 12 Macro Economics Chapter-4 Banking NCERT TEXTBOOK QUESTIONS SOLVED 1. Explain the functions of a commercial bank? Ans: Deleted from syllabus. 2. What is money multiplier? How will you determine its value? What ratios play an important role in the determination of the value of the money multiplier? [3-4 Marks] Ans: When…
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NCERT Solutions for Class 12 Macro Economics Chapter-3 Money NCERT TEXTBOOK QUESTIONS SOLVED 1. What is Barter system? What are its drawbacks? [3 Marks] Ans:Barter system of exchange is a system in which goods are exchanged for goods. It’s Drawbacks are: Lack of double coincidence of wants. Lack of divisibility. Difficulty in storing wealth. Absence…
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NCERT Solutions for Class 12 Macro Economics Chapter-2 National Income and Related Aggregates NCERT TEXTBOOK QUESTIONS SOLVED 1. Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain. [3 Marks] Ans: The sum of final expenditures in an economy must be equal to the income received by all the…
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NCERT Solutions for Class 12 Macro Economics Chapter-1 Introduction to Macroeconomics and its Concepts NCERT TEXTBOOK QUESTIONS SOLVED 1. Describe the five major sectors in an economy according to the macroeconomic point of view.[3-4 Marks] Ans: An economy may be’ divided into different sectors depending on the nature of study. Producer sector engaged in the production…
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NCERT Solutions for Class 12 Macro Economics Chapter 1 Introduction to Macroeconomics and its Concepts Chapter 2 National Income and Related Aggregates Chapter 3 Money Chapter 4 Banking Chapter 5 Aggregate Demand and Its Related Concepts Chapter 6 National Income Determination and Multiplier Chapter 7 Excess Demand and Deficient Demand Chapter 8 Government Budget and…
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NCERT Solutions for Class 12 Micro Economics Chapter-12 Market Equilibrium with Simple Applications NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain market equilibrium. [1 Mark] Answer: Market equilibrium refers to the situation when market demand is equal to the market supply. Question 2. What will happen if the price prevailing in the market is (i) Above the…
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NCERT Solutions for Class 12 Micro Economics Chapter-11 Non-Competitive Market NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain why the demand curve facing a firm under monopolistic competition is negatively sloped? [3 Marks] Answer: The demand curve of a firm under monopolistic competition is negatively sloped because of product differentiation. The product of the sellers are differentiated…
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NCERT Solutions for Class 12 Micro Economics Chapter-10 Perfect Competition NCERT TEXTBOOK QUESTIONS SOLVED Question 1. What are the Characteristics of a perfectly competitive market? [3 Marks] Answer: Large number of buyers and sellers Homogeneous product Free entry and exit of firms Perfect knowledge about the market Perfect mobility of factors of production Absence of…
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NCERT Solutions for Class 12 Micro Economics Chapter 9 Producer Equilibrium NCERT TEXTBOOK QUESTIONS SOLVED Question 1. What conditions must hold if a profit- maximizing firm produces positive output in a competitive market? Or [6 Marks] Explain the producer’s equilibrium with MR/MC approach (when Price remains constant with the rise in output). Or Explain the…
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