NCERT Class 12 Economics Part 2 Chapter 1 Introduction Extra Questions and Answers
Class 12 Economics Part 2 Chapter 1 Extra Inside Questions and Answers – Introduction. Here in this Page Class XII Students can Learn Extra Questions & Answer 1st Chapter Economics Part 2 fully Inside.
We Provided Here Introduction Economics Part 2 Chapter 1 Long Answer Type Question, MCQ Questions & Answer, Short Answer Type Questions (2 or 3 marks), and Very Short answer Type Question (1 marks) Solution.
Class 12 Economics Part 2 Chapter 1 Inside based Question
Economics Part 2 Chapter 1 Introduction Class 12 Inside 6 Marks, 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.
1.) What is the suggestion of father of modern economy?
Ans – Macroeconomics tries to address situations facing the economy as a whole. Adam Smith, the founding father of modern economics, had suggested that if the buyers and sellers in each market take their decisions following only their own self-interest, economists will not need to think of the wealth and welfare of the country as a whole separately.
2 .) Explain the character of macroeconomics.
Ans –1.First, who are the macroeconomic decision makers ?
Macroeconomic policies are pursued by the State itself or statutorybodies like the Reserve Bank of India (RBI), Securities and ExchangeBoard of India (SEBI) and similar institutions. Typically, each suchbody will have one or more public goals to pursue as defined by lawor the Constitution of India itself. These goals are not those ofindividual economic agents maximising their private profit or welfare.Thus the macroeconomic agents are basically different from theindividual decision-makers
2.) Secondly, what do the macroeconomic decision-makers try to do?
Obviously they often have to go beyond economic objectives and tryto direct the deployment of economic resources for such public needs. Such activities are not aimed at servingindividual self-interests. They are pursued for the welfare of thecountry and its people as a whole.
4.) who are the decision makers in macroeconomics?
Ans -Macroeconomic policies are pursued by the State itself or statutorybodies like the Reserve Bank of India (RBI), Securities and ExchangeBoard of India (SEBI) and similar institutions. Typically, each suchbody will have one or more public goals to pursue as defined by lawor the Constitution of India itself. These goals are not those ofindividual economic agents maximising their private profit or welfare.Thus the macroeconomic agents are basically different from theindividual decision-makers.
5.) who is the publisher of the book The General Theory of Employment, Interest and Money.
Ans – The British economist John Maynard Keynes is the publisher of The General Theory of Employment, Interest and Money.
6.) What is mean by revenue , profit and investment expenditures ?
Ans – Afterproducing output with the help of these three factors of production,namely capital, land and labour, the entrepreneur sells the product inthe market. The money that is earned is called revenue. Part of therevenue is paid out as rent for the service rendered by land, part of it ispaid to capital as interest and part of it goes to labour as wages. Therest of the revenue is the earning of the entrepreneurs and it is calledprofit. Profits are often used by the producers in the next period tobuynew machinery or to build new factories, so that production can beexpanded. These expenses which raise productive capacity are examplesof investment expenditure.
7.) Explain the characters of capital economy.
Ans -Following are the characters of capital economy
(a) there is private ownership of means of production
(b) productiontakes place for selling the output in the market
(c) there is sale andpurchase of labour services at a price which is called the wage rate.
8.) Explain the kinds of trade with external sector .
Ans – Following are the kinds os trade with external sector
1.) The domestic country may sell goods to the rest of the world. These are called exports.
2.) The economy may also buy goods from the rest of the world. These are called imports. Besides exports and imports, the rest of the world affects the domestic economy in other ways as well.
3.) Capital from foreign countries may flow into the domestic country,or the domestic country may be exporting capital to foreign countries.
For more ⇓
- Theory of consumer behavior Extra Questions
- Production and Costs Extra Questions
- The Theory of the firm under Perfect Competition Extra Questions
- Market Equilibrium Extra Question
For more updates, follow our page ⇒ Net Explanations