I. 211.

Q.4. Ans.
Q.3.
Ans. Define
utility.
Ans. Q.1. Short
Q.2.
Define (b) meaningWhat (b) (a) The GiveUtility
(a)There (0) (a) (b) a)
Answer
whether
derived Ordinal
measurable Cardinal
units.
UtilityUtility two two ExplainWhat Vnat
inflation.What
marginal are are is
tw o ofthe important is important
is thQuestions
e is is is
from
measurement the
aggregate
the measurement thesesubjective basically want inflation?aggregate
utility approaches
and two meaning
utility.
another approaches.
approaches features satisfying
quantifiable features demand?
derived and a Distinguish supply?
good. of
psychological of
regarding of hence demand-pull
utility. of power
of
from utility. regarding utility: Mention Mention
utility.
concept
It varies between
a of
implies According the
good concept a
measurement from commodity and its
and the components.
isthat demand-pull
cost-push
greater, measurement individualwhich
can
a to
consumer be can or
this
less
expressed utility:of to be servICe. a inflation.
or approach, individual. inflation
of felt
equal can
utility? or
state in realised. and
to utility
the numerical
definitely Give cost-push
utility
is the
a
 total uul1ty whh results
commodity is the change in
utility of a
Ans. The marginal
increase in
consumption.
trom a unit MU= TU, - TU, -1
from the consumption
Q.5. Definc total utility. marginal utilities obtained
the
Ans. Total utility is the sum of
of different units ofcommod1ty.
TU= MU
terms
Q.6. Define Value (or Value-in-exchange). purchasing power of a commodity in
Ans. Value (or Value-in-exchange) means
of other goods.
Q.7. What are the attributes of valuc?
Ans. Attributes of Value:
(a) Utility
(b) Scarcity
(c) Transferability
Q.8. Define price.
Ans. When the value of a commodity is expressed in terms of money, it is called
price.
Q.9. Mention the differences between value and price.
Ans. Differences between value and price:
(a) Value of a good is expressed in terms of another good. Price, on the other
hand is expressed in terms of money.
(b)Value of all goods cannot rise or fall at the same time but prices of all goods
can rise or fall at the same time.
Q.10. Define wealth.
Ans. Wealth is defined as stock of useful goods which are in limited supply and have
a money value. In other words, anything which possesses the attributes of utility,
scarcity and transferability is termed as wealth.
Q.11. Give the meaning of capital.
Ans. All man-made assets which can be used for production of goods and services are
called capital.
Q.12. What is meant by welfare?
Ans. Welfare means the general condition of wellbeing of a person or group of
persons.
Q.13. What is individual welfare? How can it be measured?
Ans. Individual welfare refers to the utilities or satisfaction that a person derives. It can
be measured by the act of choice of the individual.
Q.14. Why is the measurement of social welfare difficult?
Ans. The measurement of social weltare is a difficult task because it contains vale
judgements and inter-personal comparisons.
Q.15. Define welfare economics.
Ans. Welfare economics is that branch of economic analysis which is concerned primarily
with establishment of criteria that can provide a positive basis for adopting policies
which are likely to maximise social welfare.
Q.16. Define Pigou's concept of economic welfare.
can be brought directly
Ans. Economic welfare is that part of social welfare which money.
or

indirectly into relationship with the measuring rod of

or Pareto optimum.
Q.17. Define the concept of maximum social welfare
 Ans.Q.28. Ans. Q.27. Ans. Q.26. monopoly.
Ans.Define
Q.25. Ans.Q.24. Ans.Q.23. Q.22. Ans.Q.21. Ans.Q.20. Ans.Q.19. Ans.
56
Ans. Ans.Q.18.
ch Define AR
listic What (d) producer
(c) Single
(b) (a) Four GiMonopoly
ve firm Ax-axis.
A to What In mobility
Perfect
(e) (d) product
Homogeneous (c) (b) (a) Four calledcompetition
and perfectA (d) (c) (b)Markets
Define (a) Name (d)Commodity Area(c) (b) Features of
) commodity
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When
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perfect Tell market The How possible
and No perfect
knowledge
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Close
er producing
large fourperfectlarge a term do it
opolistic MRis close features four is important th e is
the
competition
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certain
to to important refers competition in time markets make
ition
ell curvesshape substitutethe of shape ofnumber numberwhich the market: remain
of
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ISC
sloping a entry features competition period define the
entry monopoly period
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ir of commodity to between Economics-XI
at
mpetition under AR of of we which features refers in state least
features that firm firm or features of market?
y AR ARAR buyers market of close
exit of sellers find market. time
and
to ofone state
is and and form
monopoly
a market: is is and and perfect market. perfect market. are and
buyers
sellers contact.
of maximnum
offor price-taker. of and of aindividual
darket MRMR price-maker
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period:
market.structure is
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curvescurves. market curvecurves sellers
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homogeneous
dtion are sellers. socialbetter
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downwardunder organisation or under is the
market. th e which welfare
are price-taker? basis off
through
in same market: between with
which monopoly? no competition
market?
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market. of or
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any
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nd being
irms numbera
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pete
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single the
wit is
 consumption.
Q.39. Ans.Define
Q.38. Ans.Q.37. Ans.Q.36. Ans.Q.35. Ans.Q.34. Ans.Q.33. Q.32.
Ans. Ans.Q.31. oligopoly.
Ans.Define
Q.30. Ans. Q.29.

Important What (c) (b) (aItems

(c)LandLeisure-time
(a) activities. ) State (e) (d) (c) (6) Goods a) Stateutilityutility
(Knowledge (Methods
(e)Timeutility
cForm services.
) (a) Production Define
Tell donations etc.transfer Define
payments.
gifts,
Example. calledare Define
The income.
Payments market.
Ogopoly 1S Product
differentiation (b)Many(aFour
(d) (c) sellers ) fourTell
(b) (a) Give Use Capital
(c) consumption. So SellingFreedom
Free Own-account
Domestic Imputed ProductionOtherGoods
Material the
esentQuick of
which the which the payments
transfer income
Small important
are and production
goods services important of Old important
meaning the items goods and received that is cost
and and factors services goods creation means a of
and important services are rent for services
which
age payments market plays entryfeatures
(or every
and
Future Slow provided notwhich productionof and
methodscreation pensions, factor
Non-material of: services of
owner-occupied
included
own
services. which and
of clearly
as
are
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by
seller
an or features
sumption production: rendered are use which services utilities: made with income).
situationimportant exit of
mption factors to not or are ofunemploymentof as
factors
has monopolistic of
for family included of are economic you without
example.
inown-account included creation wherein
consumption the within
of production: fixed
sold
are of
perceptible
a monopolistic
role
included Service can. production
(production?
directEnterprise members, the houses.assets. utility utility
(d Place
) (b) rendering
d) (b)
Labour in in of the competito
in utilities
householdproduction.production.production: in
the utilities. allowance, number
satisfaction market effect competition Basic
close production. or
any against
on of
relations by with the
scholarships productive
otherssellers
Concepts
provision their
of the a market.
human housewives. view productive and of of
and services
to of to influences
th e Economics
wants family earn th e commouy
goods
students, are servees
is friends. profit. called
and 57
called u
 Q.51. Q50.
Q.52. Inflation
Ans. Ans. Ans. Q.49. Ans. Q.48. Ans. Q.47. Ans.Q.46. Ans.Q.45. Ans.Q.44. Q.43. Ans.Defi Q.savi42.neg. Ans.
inflation?
What level. WhatBoom; Mention cycle. The What
Ans. DeiQ4ne: Ans. Q.40. Ans. 58
Components WhatAggregattahle Governmnent
e Component
What s What economy
Aggregate Mentionresources,
What (b ) (a) so
Sust needs
a in abl e What S=
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inventories,
is is
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cycle is are is ar e Favouri Sat
isn
isg fyi n g as
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demand-pull inflation? can the meant producers aggregate and is is the the Final
of the suppl y aggregat
thduring
e demand e any to meant the answer
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be
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Depression;
Define main a
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in
refers
suppl y ? year.
demand?
refers feat
human u res materials a
sustainable of the and
inside new Intermediate inside
inflation? and.depressionbusiness
as it. stages
an
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components
the ne Net
and
-
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and and and
NetFi xed
addition of
and and factories,
investmentchapter. Economics-XI
. the
a
Defi
the ne over needs; of
needs quality the chapter.Public Ex-post to
Whatpersistent business
and of cycler Wages;
of consumpt
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it.
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es,
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is
a demand future consumption.
oflife,goods
and
capitalistic
cycle. year.
a
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most of demand; demand? for generations.
standards stock
appreciable and
supply:
and
and transportation
important Profit. goods final mi n i m is in g
services real
of
Private of pollutants
economy and goods living. capital
rise
that tacilities
demand-pull
cause of in services investnment and th e assets,
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as

prICe by an
 inflation
may cost-push
situation the even
in arise (b)
unemployment. of inflationDemand-pull
is
phenomenon employment post-full commonly
whereas costs. increase
in caused
by is
isDemnand-pull (a)
while demand increase
in by inflation
caused
inflation cost-push Demand-Pull
and between Difference Ans.
Inflation: Cost-Push inflation.
between difference points
of two Give Q.54.
cost-push demand-pull
andinflation
is cost-push
theinflation the cause
of main The
production. ofcost inrise
production. cost
of the increase
in
tostart prices wherein situation inflation
refers
ato Cost-push Ans.
because
an of rise inflation? push
coslemergence
of the forreason main the isinflation?
What cost-push What
is 0.53.
demand. rising ever pressure
of theinflation
is of
cause
important most The
prices. current services
at and goods supply
of total texceeds
he persistently
demand aggregate the where situation defined
a as beinflation
may Dermand-pull Ans.

Economics
59 Concepts
of Basic