Money and Banking — Economics STD 12 Humanities & Commerce — Question

What will be the effect of the following changes in total revenue on marginal revenue?

1. Total revenue increases at a decreasing rate.
2. Total revenue increases at a constant rate.

Explain the relationship between Total Product, Average Product and Marginal Product.

State the four functions of money. Explain anyone of them.

Complete the following table.

Price (₹)	8	6	4	2
Output (Units)	1	2	3	4
TR(₹)	-	-	-	-
MR (₹)	-	-	-	-

The price of commodity is ₹15 per unit and its quantity demanded is 500 units. Its quantity demanded rises by 80 units as a result of fall in its price by 20 percent. Calculate its price elasticity of demand. Is its demand inelastic? Give reason for your answer.

Explain two points of distinction between monopoly and monopolistic competition.

When price of a commodity falls by Re. 1 per unit, its quantity demanded rises by 3 units. Its price elasticity of demand is (-)2. Calculate its quantity demanded if the price before the change was Rs. 10 per unit.

Distinguish between cooperative and non-cooperative oligopoly.###Differentiate between collusive and non-collusive oligopoly.

Explain any one of the following functions of a central Bank: (1) Currency authority (2) lender of last resort.

 

Complete the following table:

Output (units)	Average Variable Cost (AVC) (₹)	Total Cost (TVC) (₹)	Marginal Cost (MC) (₹)
1	__	60	20
2	18	__	__
3	__	__	18
4	20	120	__
5	22	__	__