Q13 of 36 Page 1

Give any two examples of the flow concept.

A flow is a variable measured over a period of time. For example, national income and production.


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11

What is meant by “diminishing returns to a factor” ? Discuss any two reasons for the operation of diminishing returns to a factor.

 12

Elaborate on three main features of monopoly form of market.

OR


Distinguish between perfect competition and monopolistic competition on the basis of the following :


(a) Number of sellers


(b) Nature of product


(c) Selling cost


 14

Define the term ‘tax’.

 15

Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ________. (Choose the correct alternative)