Short Answer TypeState different phases of the law of variable proportions on the basis of total product. Use diagram.
Or
Explain the geometric method of measuring price elasticity of supply. Use diagram.
Good Y is a substitute of good X. The price of Y falls. Explain the chain of effects of this change in the market of X.
Or
Explain the chain of effects of excess supply of a good on its equilibrium price.
Given below is the cost schedule of a product produced by a firm. The market price per unit of the product at all levels of output is Rs. 12. Using marginal cost and marginal revenue approach, find out the level of equilibrium output. Give reasons for your answer :
| output (units) | 1 | 2 | 3 | 4 | 5 | 6 |
| average cost (in RS) | 12 | 11 | 10 | 10 | 10.4 | 11 |
The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called : (choose the correct alternative)
(a) Statutory liquidity ratio
(b) Deposit ratio
(c) Cash reserve ratio
(d) Legal reserve ratio
Aggregate demand can be increased by : (choose the correct alternative)
(a) increasing bank rate
(b) selling government securities by Reserve Bank of India
(c) increasing cash reserve ratio
(d) none of the above
Give the meaning of balance of payments.
Balance of payments (BOP) defines a systematic record of all economic transactions between the domestic country and the rest of the world during a particular period of time.In other words it records the inflow of foreign exchange into the country and foreign exchange from the country.
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