CBSE Class 5 Notes

CBSE Class 5 Revision Notes for kids will help you revise everything you’ve learnt in class and more. They cover syllabus across boards to provide an all-round learning experience. Available in a PDF format, these chapter wise class 5 revision notes can also be used for assisted learning.

Key Highlights of CBSE Class 5 Revision Notes:

• Important concepts are simplified for better understanding
• Learning made fun using diagrams and illustrations
• Serve as an assisted learning tool

Revision Notes for Class 5

Download Revision Notes for Class 5 All subjects in PDF form. NCERT Solutions in PDF format is also available to download with complete description and explanation for class V. Download CBSE NCERT books for class 5 Hindi (Rimjhim), English (Marigold), Maths (Maths Magic), EVS (Looking Around) in Hindi Medium and English Medium based on latest CBSE Syllabus 2019-20.

• CBSE Class 5 Maths
• CBSE Class 5 EVS
• CBSE Class 5 English
• CBSE Class 5 Hindi
• CBSE Class 5 Paryavaran Adyayan

We hope the Revision Notes for Class 5, help you. If you have any query regarding Revision Notes, drop a comment below and we will get back to you at the earliest.

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NCERT Solutions for Class 5

• Class 5 Maths
• Class 5 EVS
• Class 5 English
• Class 5 Hindi
• Class 5 Paryayan Adyayan

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Reproduction in Plants Class 7 Extra Questions Science Chapter 12

Reproduction in Plants Class 7 Science Extra Questions Very Short Answer Type Questions

Question 1.
Why is the process of reproduction necessary?
Answer:
The process of reproduction is necessary for the perpetuation and preservation of species and to increase the number of members of species.

Question 2.
If the filament of Spirogyra is broken into fragments. What will you observe?
Answer:
If the filament of Spirogyra are broken into fragments, then each fragment will develop into a new plant.

Question 3.
Fungus, moss and fern reproduce by a common method of asexual reproduction. Name the method. [NCERT Exemplar]
Answer:
Fungus, moss and fern reproduce by the common method of spore formation which is a type of asexual reproduction.

Question 4.
A flower consists of different parts. Name these parts of a flower.
Answer:
The four main parts of a flower are
(i) Sepals
(ii) Petals
(iii) Stamen
(iv) Pistil

Question 5.
Mention the mode of reproduction in the following plants
(a) Spirogyra
(b) Yeast
(c) Money plants
Answer:
(a) Spirogyra – fragmentation
(b) Yeast – budding
(c) Money plant – Vegetative propagation

Question 6.
Pick the odd one out from the following on the basis of mode of reproduction and give reason for it, Sugarcane, Potato, Rice, Rose. [NCERT Exemplar]
Answer:
The odd one out is rice.
In the above given pairs as rice reproduces by sexual reproduction and sugarcane, potato and rose reproduces vegetatively.

Question 7.
Give one difference between unisexual and bisexual flower.
Answer:
Unisexual flowers are those which contain either male or female reproductive part and bisexual flower has both reproductive parts (i.e. male and female) on the same flower.

Question 8.
Flowers are colourful and fragrant. Give reason supporting the statement. [HOTS]
Answer:
Flowers are so colourful because they absorb and reflect light energy. Fragrance results from production of volatile chemicals which evaporate.

Question 9.
Boojho had the following parts of a rose plant-a leaf, roots, a branch, a flower, a bud and pollen grains. Which of them can be used to grow a new rose plant? [NCERT Exemplar]
Answer:
Branch can be used to grow a new rose plant. As, rose reproduces by vegetative propagation, i.e. stem cutting method.

Question 10.
Formation of new but similar individuals from parents is characteristic feature of which process?
Answer:
Reproduction is the process of production of new similar organisms from their parents.

Question 11.
Name two plants where vegetative reproduction takes place by roots.
Answer:
Sweet potato and dahlia develops new plants through their roots by the process of vegetative reproduction.

Question 12.
A yellow powdery substance is present in the anther which participates in reproduction process. Name this substance.
Answer:
Pollen grains.

Question 13.
In which part of flower does fertilisation occur?
Answer:
Ovary is the part where male and female gametes fuse together.

Question 14.
Bryophyllum leaves reproduce using which mode of reproduction?
Answer:
Asexually by vegetative propagation.

Question 15.
Which type of pollination does the given figure indicate?
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Answer:
The given figure shows self-pollination, as the pollen grains from anther of flower are transferred to the stigma of same flower.

Question 16.
What are the bulb-like projections forming in yeasts?
Answer:
The bulb-like projections formed during reproduction are called buds.

Question 17.
‘Spores’ as a means of asexual reproduction are used by which plants?
Answer:
Spores are produced by fungi, ferns and mosses during unfavourable conditions.

Question 18.
Write the male and female reproductive parts present on the flowers.
Answer:
The male reproductive part is stamen and the female reproductive part is pistil.

Question 19.
Pollen grains are present inside anthers for long time yet they do not die. Why?
Answer:
Pollen grains have a tough protective coat which presents them from drying up.

Question 20.
Name two plants in which pollination occurs by water.
Answer:
Vallisneria and Hydrilla.

Question 21.
Fruit is the ripened ovary of a flower. Explain.
Answer:
After fertilisation, the ovary of a flower develops and becomes a fruit with seeds present inside.

Question 22.
Banana is a fruit without seeds. Give reason.
Answer:
Banana forms from one parent only. There is no seed production.

Reproduction in Plants Class 7 Science Extra Questions Short Answer Type Questions

Question 1.
When you keep food items like bread and fruits outside for a long time especially during the rainy season, you will observe a cottony growth on them. [NCERT Exemplar; HOTS]
(a) What is this growth called?
(b) How does the growth take place?
Answer:
(a) When food items like bread and fruits are kept outside for a long time especially during rainy season, a cottony growth of bread mould, a fungus is observed.
(b) This growth of fungus takes place by spores present in air, which when comes in the contact with moisture in bread germinates and grow to produce new cells.

Question 2.
Collect some flower of different plants like papaya, rose, mustard, lady’s finger, Petunia, cucumber, corn, pea, etc. Group them under following heads.
(a) Which of these plants have unisexual flowers?
(b) Which of these plants have bisexual flower?
(c) What is the other name of unisexual and bisexual flower? [HOTS]
Answer:
(a) Unisexual flowers are papaya, cucumber, com.
(b) Bisexual flowers are rose, mustard, lady’s finger, Petunia, pea.
(c) Unisexual flowers are also called as incomplete flower while bisexual flowers are called hermaphrodite or complete flowers.

Question 3.
In the figure given below, label the part marked (i), (ii) and (iii). [NCERT Exemplar]
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Answer:
The parts in the given figure are labelled as follows
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Question 4.
Coconut is a large and heavy fruit. How is it adapted for dispersal by water? [NCERT Exemplar]
Answer:
The seeds of some plants that have an outer fibrous or spongy covering are dispersed through water. They have the ability to float in the water and drift along with its flow, e.g. seeds of water lily, lotus, chestnut (singhara) and coconut are dispersed through water. The coconut fruits have a fibrous outer coat which enables them to float in water and carried away by flowing water to far off places.

Question 5.
What is a bud? Which organism reproduce by budding? Given the diagrammatic representation of budding in a plant.
Answer:
Buds are small bulb-like projections of yeast cell.
These are asexual reproducing bodies of yeast.
Diagrammatic representation of budding in yeast Refer to figure on page 178.

Question 6.
Group the seeds given in figure (i) to (iii) according to their means of dispersion.
(a) Seed dispersed by wind.
(b) Seed dispersed by water.
(c) Seed dispersed by animal. [NCERT Exemplar]
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Answer:
The seeds and their means of dispersal can be given as follows:
(a) The seed of maple is dispersed by wind. It has winged seed which are light in weight.
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(b) Seed of aak or madar has hairy outgrowth which makes it lighter and can be dispersed by wind.
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(c) Seed of Xanthium have numerous spines on them which gets attached to the fur of animals. Hence, these are dispersed by animals.
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None of the seed given in the figure is dispersed by water

Question 7.
How does male gamete present in pollen grain reaches female gamete present in ovule?
Answer:
After pollination, the pollen grains fall on the surface of stigma and germinate to form a long tube, reaching the ovules inside the ovary, the egg or female gamete is present in the ovule.
The outer surface of pollen grains rupture and male gametes are released to fuse with egg.

Question 8.
How do the plants like sugarcane, potato and rose reproduce when they cannot produce seeds?
Answer:
Sugarcane and rose are propagated by stem cutting that is a method of vegetative propagation, in which stem is capable of growing into a mature independent plants that are identical to their parents.

Potato is an underground modified stem having bud called eyes, which sprout and develop into a new identical plant.
Thus, the plants which cannot produce seeds, can be propagated vegetatively with the help of vegetative parts such as stem, roots, buds and leaves.

Question 9.
Mention the benefits of seed dispersal.
Answer:
Benefits of Seed Dispersals

• Seed dispersal avoids overcrowding of young plants around their parent plants.
• It helps in preventing competition between the plants and its own seedlings for sunlight, water and minerals.
• One of the benefits of seed dispersal is that it enables the plant to grow into new habitats for wider distribution and provides them with better chance of survival.

Question 10.
What is meant by the term fertilisation? List the stepwise manner leading to formation of an embryo.
Answer:
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The process in which the male gamete fuses with female gamete to form a new cell (called zygote) is called fertilisation.
When the pollens are deposited on the stigma of the pistil, it begins to germinate. After sometime, a long pollen tube is developed from the pollen grain which passes through the style towards the female gametes in the ovary. The male gametes move down the pollen tube and the tube enters the ovule present inside the ovary.

The tip of pollen tube bursts and the male gamete comes out of the pollen tube. Inside the ovary, the male gametes fuse with the female gametes present in the ovule to form a fertilised egg cell which is called zygote.
The zygote develops into an embryo which is a part of a seed that develops into a new plant.

Question 11.
A student was given a flower. He was asked to pick the different whorls of flower by the forcep. He pulled each part of the flower and laid them on the chart paper in a sequence and named them W, X, Y, Z (from outer to inner whorl). He was unable to name them.
Help the student to name the different parts of a flower. Also help him to tell which part produces male gamete and female gametes. [HOTS]
Answer:
The four whorls of the flower are outermost whorl ‘W’ is green part which is called sepal. Inside sepal the next whorl is X which is coloured and attractive part of the flower called petals. The Y is the inner whorl of flower called stamen. It is the male reproductive part of flower. It consist of two parts, i.e. anther and filament. The anther contains male gametes called pollen grain. The whorl ‘Z’ is the innermost part of the flower called pistil. It is the female reproductive part of flower. It consist of three parts, i.e. stigma, style and ovary. The ovary produces ovule which contains the female gametes or egg cell.

Question 12.
One morning as Paheli strolled in her garden she noticed many small plants, which were not there a week ago. She wondered, where they had come from as nobody had planted them there. Explain the reason for the growth of these plants. [NCERT Exemplar; HOTS]
Answer:
The small plants which were not there in the garden a weak ago have grown up due to seed dispersal. The seeds from the tree may have fallen below or have been dispersed by wind or animals on the ground, which on germination developed into new small plants.

Question 13.
Place a piece of bread in a moist and warm place for few days. Observe it after few days. What will you see?
(a) Name the organism that grows on the bread piece?
(b) What are the thread-like projections called?
(c) What is the knob like structure present on the top of thin stem called?
(d) Which type of reproduction does this organism shows?
(e) From where does the spors comes to the bread piece? [HOTS]
Answer:
(a) When the bread piece is kept in a moist and warm place for few days, bread mould grows on the bread piece.
(b) The thread-like projections are called hyphae or mycelium.
(c) The thin stem having knob-like structure on the top is called sporangia or sporangium which contains hundred of minute spores.
(d) Bread mould shows asexual mode of reproduction.
(e) These spores are present in the air and when favourable conditions arrive, the grow into new plants.

Question 14.
Write how the following seeds are dispersed.
(a) Seeds with wings
(b) Small and light seeds.
(c) Seeds with spines/hooks.
Answer:
The mode of dispersal of the seeds having following properties are as follows:
(a) Seeds with wings-like seeds of drumstick and maple become light weighted and can be blown away by air. Thus, these are dispersed by wind.
(b) Small and light seeds like seeds of grasses and cotton (having hairy growth) are also dispersed through wind.
(c) Seeds of Xanthium, Urena have spines and hooks on them, these hooks or spines are attached to the fur of the animal body. When animals move to other places and rub their body with tree, etc., these seeds fall from their body and get dispersed.. Therefore, these are dispersed through animals.

Question 15.
Why is vegetative propagation a preferred method of asexual reproduction?
Answer:
The following advantages of vegetative reproduction makes it a preferred method

• It takes less time to grow and bear flower and fruits than those produced from seeds.
• The new plants are the exact copies of parent plant because they are produced from a single parent.

Question 16.
Insects are called agents of pollination. How do they aid in process of pollination?
Answer:
Flowers have nectars that attract insects. Insects suck these nectars as their food. When insects like bee, butterfly, etc., sit on the flower for sucking nectar, the sticky pollen grains get attached to their legs and wings. When these insects again sit on another flower, these pollen grains are transferred to the stigma of that flower from the body of the insects. In this way, insects help in pollination.

Question 17.
What is seed dispersal? What will happen if all the seeds of a plant were to fall at a same place and grow?
Answer:
Plant produces large number of seeds. When these seeds fall down they starts growing. The process by which the seeds are scattered to different place (far and wide from their parents) is called seed dispersal.
The seeds and fruits are dispersed away through various agencies like air, water and animals. Sometimes dispersal takes place by the explosion or bursting of fruits. If all the seeds of a plant were to fall at the same place and grow, there will be a severe competition for sunlight, water, mineral and space. As a result, the survival for the plants will be difficult and the plants who survive will not grow into a healthy plants.

Question 18.
Describe the structure of a flower.
Answer:
The main parts of a flower are
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(i) Sepals These are the green leaf-like outermost circle of the flower. All the sepals are together referred to as calyx. The function of calyx is to protect the flower when it is in bud form.

(ii) Petals These are the colourful and most attractive part of flower. These lie inside the sepals. All the petals are together referred to as corolla. These are scented and attract insects for pollination.

(iii) Stamen It is a male reproductive organ of plant. These are the little stalks with swollen top and lies inside the ring of petals. The stamen is made up of two parts, i.e. filament and anther. The stalk of stamen is called filament and the swollen top of stamen is called anther.
Anther contains the pollen grain which have male gamete in it. Pollen grains are exposed when the anther ripens and splits. These appear as the yellow powder like substance which is sticky in nature. Flowers usually have a number of stamens in it.

(iv) Pistil It is the female reproductive part of a flower that lies in the centre of a flower. These are flask-shaped structure which is made up of three parts, i.e. stigma, style and ovary.
The top part of pistil is called stigma. It receives the pollen grains from the anther during pollination. The middle part of the pistil is tube-like structure called style which connects stigma to the ovary.

The swollen bottom part at the base of pistil is called ovary.
The ovary makes ovules and stores them. These ovules contain the female sex cells also called as egg cell. It is the female gamete of flower. Pistil is also called as carpel. The pistil is surrounded by several stamens.
The base of the flower on which all the parts of flower are attached is called receptacle.

Question 19.
Observe the given figure?
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(a) Which plant is this? Give the name of the plant.
(b) What does it shows?
(c) From where the new plants are developing?
Answer:
(a) The given figure is of Bryophyllum leaf. It is also called as sprout leaf plant.
(b) It shows vegetative reproduction by leaves.
(c) The leaves of Bryophyllum develops some buds in its margin or edges which grow into new plants, when buried in the soil.

Question 20.
The process of layering is commonly used in jasmine for reproduction. Explain how this process of layering is performed in jasmine. [HOTS]
Answer:
Layering is a method of vegetative reproduction in branches. In this method, a mature branch of parent plant is bent down and covered with soil.
The tip of the branch is kept above the ground. After few days the roots are developed from the branch buried under the soil and develops into a new plant. This method is done in the plants that have long and slender branches, e.g. jasmine.

Reproduction in Plants Class 7 Science Extra Questions Long Answer Type Questions

Question 1.
In the figure of a flower given below, label the parts whose functions are given below and give their names.
(a) The part which contains pollen grains.
(b) The part where the female gamete is formed.
(c) The female reproductive part, where pollen grains germinate.
(d) The colourful part of flower which attracts insects[NCERT Exemplar]
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Answer:
The various parts of a flower whose functions are mentioned above are labelled as follows :
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Question 2.
Observe the following figure and answer the following questions.
(a) Which type of vegetative propagation has been shown in this figure?
(b) Name two plants where this method of vegetative reproduction takes place.
(c) Is this a sexual or asexual mode of reproduction?
(d) Label the part (A) and (B) in the given figure.
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Answer:
(a) The given figure shows grafting method (vegetative reproduction).
(b) Mango and rose are the two plants where this method of vegetative takes place.
(c) It is asexual method of reproduction.
(d) (A) Scion (B) Stock

Question 3.
Explain the process of reproduction in plants, involving the fusion of cells from male and female parts of a flower.
Answer:
When the reproduction in an organism includes two types of gametes, i.e male and female from two different parents, it is called sexual reproduction. The sexual reproduction takes place by the fusion of male and female gametes by the process called fertilisation to form zygote.
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Sexual reproduction [fertilisation) in plants The different steps that take place during sexual reproduction in plants are

• The pollens are deposited on stigma and begins to germinate.
• Pollen tube containing male gametes reaches to the ovary of flower.
• The tip of the pollen tubes gets dissolved and male gametes comes out of the pollen tube.
• Inside the ovary male gametes fuse with the female gamete or egg present in the ovule.
• The fusion of both the gametes will result into a fertilised egg cell which is also called as zygote.

Question 4.
Name some fruit bearing plants. Now make a table and describe the method of seed dispersal in these fruits as well as the part which helps in the seed dispersal.
Answer:
The method of seed dispersal in the fruits and the parts which help in the seed dispersal:
Name of fruits bearing plants Agents through which seeds are dispersd Parts or seeds which helps in dispersal

Question 5.
Observe the given figure and answer the following questions.
(a) Name the plant?
(b) Which type of reproduction is seen in this plant?
(c) Is ginger a root or stem?
(d) Label the part of this plant?
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Answer:
(a) The given figure is of ginger tuber.
(b) Asexual reproduction is seen in this plant.
(c) Ginger is a stem.
(d) Various parts of this plant can be shown as follows:
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Question 6.
Ria went to a plant nursery with her mother. The gardner approached them and asked about their choice of plant. Ria’s mother wanted a flowering plant with fragrance. Gardner showed them a plant and told them that this variety has been prepared by a method of vegetative propagation of stems.
Ria grew curious and asked some questions to gardner.
(a) What is vegetative propagation?
(b) What are methods of producing new plants using stem?
(c) Name any two plants where this method of reproduction is used. Is this a asexual or sexual method?
(d) What values do you observe in Ria? [Value Based Question]
Answer:
(a) Vegetative propagation is the process of reproduction in which new plants are produced from different parts of old plants like stem, roots or leaves.
(b) Cutting and grafting method are two methods where stem is used for vegetative propagation.
(c) Mango and rose are two plants cultivated using vegetative propagation.
This is an asexual method of reproduction.
(d) Ria is curious, inquiring who wants to gain knowledge about process occurring around here.

Question 7.
Ravi was sitting in a garden with his family. His younger sister comes running with different types of flowers and starts to name their parts. She stops as she forgets some names and Ravi noticing this comes to help her.
His sister askes many questions related to flowers and Ravi answers her with all information he has.
(a) What is a flower and mention its function during reproduction?
(b) Flowers help in pollination and fertilisation. Yes/No? Give reason.
(c) Do all flowers have both male and female parts on them specify?
(d) What values are observed in Ravi and his sister? (Value Based Question]
Answer:
(a) A flower is the reproductive part of plant which helps in sexual reproduction.
A flower ensures the occurrence of process of fertilisation.
(b) Yes, flower aids in both pollination and fertilisation. Different colours and fragrance of flowers attract insects to them causing dispersal of pollen grain ensuring pollination.
Fertilisation occurs in the ovary of the flower after pollination of male and female parts.
(c) Number of some flowers can either have male or female parts on them, these flowers are called unisexual.
Some flowers have both, the male and female parts on them so they are called bisexual flowers.
(d) Ravi is aware, sincere, helpful as he helps others and knowledgeable while his sister is inquisitive, ready to acquire new knowledge and observant.

Reproduction in Plants Class 7 Science Extra Questions Miscellaneous Questions

Multiple Choice Questions
Question 1.
The ‘eye’ of the potato plant is what?
(a) The root is to any plant
(b) The bud is to a flower
(c) The bud is to Bryophyllum leaf
(d) The anther is to stamen
Answer:
(b) The bud is to a flower

Question 2.
Seeds of drumstick and maple are carried to long distances by wind because they possess [NCERT Exemplar]
(a) winged seeds
(b) large and hairy seeds
(c) long and ridged fruits
(d) spiny seeds
Answer:
(a) winged seeds

Question 3.
Lila observed that a pond with clear water was covered up with a green algae within a week.
By which method of reproduction did the algae spread so rapidly?
(a) Budding
(b) Sexual reproduction
(c) Fragmentation
(d) Pollination
Answer:
(c) Fragmentation

Question 4.
Which of the following parts of a sexual reproduction?
(i) Flower
(ii) Seed
(iii) Fruit
(iv) Branch
Choose the correct answer from below
(a) (i) and (ii)
(b) (i), (ii) and (iii)
(c) (iii) and (iv)
(d) (ii), (iii) and (iv)
Answer:
(b) (i), (ii) and (iii)

Question 5.
The ovaries of different flowers may contain . [NCERT Exemplar]
(a) only one ovule
(b) many ovules
(c) one to many ovules
(d) only two ovules
Answer:
(c) one to many ovules

Question 6.
Which of the following statements is/are true for sexual reproduction in plants?
(i) Plants are obtained from seeds
(ii) Two plants are always essential
(iii) Fertilisation can occur only after pollination
(iv) Only insects are agents of pollination
Choose from the options given [NCERT Exemplar]
(a) (i) and (iii)
(b) only (i)
(c) (ii) and (iii)
(d) (i) and (iv)
Answer:
(a) (i) and (iii)

Question 7.
The fusion of male and female gametes is called
(a) ovulation
(b) population
(c) pollination
(d) fertilisation
Answer:
(d) fertilisation

Question 8.
Which among the following have hairs on seed?
(a) Drumstick
(b) Cotton
(c) Aak
(d) Maple
Answer:
(b) Cotton

Question 9.
Which among the following do not reproduce by vegetative reproduction?
(a) Wheat
(b) Sugarcane
(c) Rose
(d) Jasmine
Answer:
(a) Wheat

Question 10.
The mode of vegetative reproduction where scion and stock are used is called
(a) budding
(b) grafting
(c) cutting
(d) layering
Answer:
(b) grafting

Question 11.
The female gamete of a flowering plant is present in which part?
(a) Ovules
(b) Buds
(c) Pollen
(d) Anther
Answer:
(a) Ovules

Fill in the Blanks
1.The male and female gametes fuse to form a …………… during the process of …………… This grows into an …………… which is enclosed within a seed. After fertilisation the ovules develop into …………… and the ovary develops into a …………… [NCERT Exemplar]
2. Roots, stems and leaves are called …………… of a plant.
3. The small bulb like projections coming out from the yeast cell is called a …………… .
4. The scars present on the potato tubers are called …………… .
5. Spirogyra \s an alga which may breaks up into two or more …………… .
6. The …………… is the male reproductive part of flower while …………… is the female reproductive part of a flower.
7. Pollen grains are …………… that can be carried by …………… or …………… .
8. The cells which result after …………… of the gametes is called …………… .
Answers:
1. zygote, fertilisation, embryo, seed, fruit
2. vegetative part
3. bud
4. eye
5. fragments
6. stamen, pistil
7. light, wind, water
8. fusion, zygote

True/False
1. Potato reproduces from seeds.
2. Hibiscus or China rose is a bisexual flower.
3. Jasmine is grown by grafting.
4. Asexual reproduction in yeast takes place by budding.
5. Pollination is the process of fusion of male and female gametes.
6. Fruits are developed from the ripened ovary.
7. Pollen grains are present in anther.
8. Maple seed is dispersed by explosion mechanism.
9. Two individuals are needed for the sexual reproduction.
10. Pistil is the male reproductive part of a flower.
Answers:
1. False, potato reproduces from ‘eyes’ which are buds present on its body.
2. True
3. False, jasmine is grown by layering method of vegetative propagation.
4. True
5. False, pollination is the process of transfer of pollen grains from anther to the stigma of flower.
6. True
7. True
8. False, maple seed is dispersed by wind or water as these seeds are very light and hairy.
9. True
10. False, pistil is the female reproductive part of a flower.

Match the Columns
Question 1.
Match the Column I with Column II

Answers
1.
(a)-(vii)
(b)-(ix)
(c)-(x)
(d)-(viii)
(e)-(i)
(f)-(iii)
(g)-(ii)
(h)-(iv)
(i)-(v)
(j)-(vi)

Extra Questions for Class 7 Science

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Perfect Competition – CBSE Notes for Class 12 Micro Economics

CBSE NotesCBSE Notes Micro EconomicsNCERT Solutions Micro Economics

Introduction

This chapter gives the definition of market and its structure, forms of market mainly perfect competition and its features and related concepts (the remaining forms of market being studied in Chapter-12) and short run equilibrium condition under it.

1. Market refers to a region where the buyers and sellers of a commodity come in contact with each other to effect the transactions of purchase and sale of the commodity.
2. Market structure refers to number of firms and types of firms operating in the industry.
3. Three basis on which different market are defined:
(a) Nature of commodity: If homogeneous goods are produced in a market, it is sold at a constant price. If commodity produce is of heterogeneous or differentiated in nature, it may be sold at different prices. If commodity has no close substitute, the seller can charge higher price from the buyer.
(b) Number of buyer and sellers: If there are large number of buyers and sellers, then buyers and sellers are not in a position to influence the price of the commodity. If, there is a single seller of a commodity, then the seller has control over a price.
(c) Entry and exit of a firm: If there is a free entry and exit of a firm, then the price will be stable in the long run. It is so because then the new firm enter the industry induced by large profit, then abnormal profit will be wiped out and if inefficient firms incurring losses are free to leave the industry. In short due to free entry and exit, firm earns normal profit. If there is difficult entry of a new firm (because of patent rights), then a firm can influence the price as it has no fear of competition.
4. Main forms of market are:
(a) Perfect competition
(b) Imperfect competition.
(i) Monopoly
(ii) Monopolistic competition (iii) Oligopoly.
5. Perfect Competition refers to a market situation in which buyers and sellers operate freely and a commodity sells at a uniform Constant) price.
6. Features of Perfect Competition:
(a) Large number of sellers and buyers:
(i) Large number of sellers
• The words ‘large number’ simply states that the number of sellers is large enough to render a single seller’s share in total market supply of the product is insignificant.
• Insignificant share means that if only one individual firm reduces or raises its own supply, the prevailing market price remains unaffected.
• The prevailing market price is the one which was set through the intersection of market demand and market supply forces, for which all the sellers and all the buyers together are responsible.
• One single seller has no option but to sell what it produces at this market determined price. This position of an individual firm in the total market is referred to as price taker. This is a unique feature of a perfectly competitive market.
(ii) Large number of buyers
• The words ‘large number’ simply states that the number of buyers is large enough, that an individual buyer’s share in total market demand is insignificant, the buyers cannot influence the market price on his own by changing his demand.
• This makes a single buyer also a price taker.
To sum up, the feature “large number” indicates ineffectiveness of a single seller or a single buyer in influencing the prevailing market price on its own, rendering him simply a price taker.
(b) Homogeneous Products:
(i) Product sold in the market are homogeneous, i.e., they are identical in all respects like quality, colour, size, weight, design, etc.
(ii) The products sold by different firms in the market are equal in the eyes of the buyers.
(iii) Since, a buyer cannot distinguish between the product of one firm and that of another, he becomes indifferent as to the firms from which he buys.
(iv) The implication of this feature is that since the buyers treat the products as identical they are not ready to pay a different price for the product of any one firm. They will pay the same price for the products of all the firms in the industry. On the other hand, any attempt by a firm to sell its product at a higher price will fail. To sum up, the “homogenous products” feature ensures a uniform price for the products of all the firms in the industry.
(c) Free entry and exit of firms:
(i) Buyers and sellers are free to enter or leave the market at any time they like. New firms induced by large profits can enter the industry whereas losses make inefficient firms to leave the industry.
(ii) The freedom of entry and exit of firms has an important implication. This ensures that no firm can earn above normal profit in the long run. Each firm earns just the normal profit, i.e., minimum necessary to carry on business.
(iii) Suppose the existing firms are earning above normal profits, i.e. positive economic profits. Attracted by the positive profits, the new firms enter the industry. The
industry’s output, i.e. market supply, goes up. The prices come down. New firms continue to enter and the prices continue to fall till economic profits are reduced to zero.
(iv) Now suppose the existing firms are incurring losses. The firms start leaving. The industry’s output starts falling, prices going up, and all this continues till losses are wiped out. The remaining firms in the industry then once again earn just the normal profits.
(v) Only zero economic profit in the long run is the basic outcome of a perfectly competitive market.
(d) Perfect Knowledge about the market:
(i) Perfect Knowledge means both buyers and sellers are fully informed about the market.
(ii) The firms have all the knowledge about the product market and the input markets. Buyers also have perfect knowledge about the product market.
(iii) The implication of perfect knowledge about the product market is that any attempt by any firm to charge a price higher than the prevailing uniform price will fail. The buyers will not pay because they have perfect knowledge. A uniform price prevails in the market.
(iv) Regarding the knowledge about the input markets the implicit assumption is that each firm has an equal access to the technology and the inputs used in the technology.
(ii) No firm has any cost advantage. Cost structure of each firm is the same. All the firms have a uniform cost structure.
(vi) Since there is uniform price and uniform cost in case of all firms, and since profit equals revenue less cost, all the firms earn uniform profits.
(e) Perfect mobility:
(i) There is perfect mobility in the market both for goods and factors of production.
(ii) There should be no restriction on their movement. Goods can be sold at any place.
(iii) Similarly, factors of production can freely move from one place to another or from one occupation to another.
(j) Absence of transportation and selling cost.
(i) In perfect competition, it is assumed that there is no transport cost for consumers who may buy from any firm and also there is no selling cost.
(ii) This insures existence of a single uniform price of the product.
7. Demand Curve and revenue curves under perfect competition
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(a) As we know, in perfect competition homogeneous goods are produced. So, price remains constant, which makes the demand curve perfectly elastic.
(b) In perfect competition, homogeneous goods are produced, that is why price remains constant, as price = AR, it means AR remains constant. And if, AR remains constant, then AR = MR as per the
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8. In perfect competition, industry is the price maker and firm is the price taker.
(a) As we know, in Perfect competition, homogeneous goods are produced. So, industry cannot charge different price from different firms.
(b) So, industry will give that price to the firm where industry is in equilibrium,
i. e., where Demand = Supply. Any movement from that point would be unstable.
(c) In the above diagram, price, revenue and Cost is measured on vertical axis and units of commodity on horizontal axis. Industry will give OP price to the firm as at that point Demand = supply, i.e., industry is in equilibrium.
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The firms will follow the same price and charges same from the consumer.
9. Relationship between TR, AR and MR under perfect competition
(a) In the perfect competition, a firm is a price taker.
(fa) ) It has to sell its product at the same price as given (determined) by the industry. Consequently, price = AR = MR.
(c) Hence, a firm’s AR and MR curve will be a horizontal straight line parallel to X axis.
(d) Since price remains the same, i.e., MR is constant, therefore, TR increases at the constant rate as increase in the output sold.
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(e) As a result, TR curve facing a competitive firm is positively sloped straight line. Again, because at zero output Total Revenue is zero therefore, TR curve passes through the origin O as shown in the
10. Break-even Point
(a) Break-even point is the level of output at which total cost of production (Fixed Cost + Variable Cost) per unit just equals to Total Revenue.
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(b) At this point the firm has neither profit nor loss. In other words, firm gets only normal profit, which is included in total cost.
(c) Normal profit is a minimum profit, that a firm must get to remain in Production.
11. Shutdown point: Shutdown point is a point where a firm is indifferent between whether to produce or shutdown. In other words, it is a situation when a firm is able to cover its variable costs only.
The condition of shutdown point is:
Price = Minimum of SAVC (Short run average variable cost)
Multiply by output
Price x output = SAVC x output
TR = TVC

Words that Matter

1. Market: It refers to a region where the buyers and sellers of a commodity come in contact with each other to effect the transactions of purchase and sale of the commodity.
2. Market structure: It refers to number of firms and types of firms operating in the industry.
3. Perfect Competition: It refers to a market situation in which buyers and sellers operate freely and a commodity sells at a uniform (Constant) price.
4. Homogeneous Products: Product sold in the market are homogeneous, i.e., they are identical in all respects like quality, colour, size, weight, design, etc.
5. Break-even point: It is the level of output at which total cost of production (Fixed Cost + Variable Cost) per unit just equals to Total Revenue.
6. Shutdown point: It is a point where a firm is indifferent between whether to produce or shutdown. In other words, it is to a situation when a firm is able to cover its variable costs only.

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Enterprise Growth Strategies – CBSE Notes for Class 12 Entrepreneurship

1. Small enterprises are vulnerable to slightest changes in the environment.
2. Main forms of external expansion are: (a) Franchising; (b) Merger; (c) Acquisition.
3. Sustainability is important managerial function for an entrepreneur.
4. Franchising is an arrangement through which the manufacturer or sole distributor of a trade-marked product or service gives exclusive rights of local distribution to independent retailers in return for royalties and conformance to standardized operating procedures.
5. Creativity and innovation are vital for the growth and development of the enterprises.
6. There are four types of franchising product: Franchise business opportunity, Manufacturing franchise opportunity, Business franchise opportunity ventures, Business format franchise opportunity.
7. A merger is a combination of two companies into one larger company.
8. Enterprise must maintain pace with the changes for growth.
9. Types of mergers are 1. Conglomerate; 2. Vertical; 3. Market extension; 4. Horizontal;
5. Product extension.
10. Modernisation reduces cost of production.
11. Types of acquisition are friendly acquisition; Reverse acquisition; Back flip acquisition; Hostile acquisition.
12. Reasons for mergers and acquisitions : Synergy—operating synergy and financial synergy, Acquiring new technology, Improved profitability, Acquiring a competency, Entry into new markets, Access to funds,. Tax benefits.
13. Reasons for failure of merger and acquisitions are unrealistic price paid for target, Difficulties in cultural integration, Overstated synergies, Integration difficulties, Inconsistent strategy, Poor business fit, Inadequate due diligence, High leverage, Boardroom split, Regulatory issues.
14. Diversification normally relates to addition of similar products/services to the original one.
15. Value addition: Businesses add value to goods and services by modifying them in a particular way to create a new product of greater value to customers.
16. Types of added value: Quality, Environmental, Cause-related, Cultural.
17. Primary activities of Value Chain: 1. Inbound logistics; 2. Operations; 3. Outbound logistics; 4. Marketing and sales; 5. Services.
18. Support activities of Value Chain are 1. Procurement 2. Technology development
3. Human resource management 4. Firm infrastructure.
19. Expansion of an enterprise can be made possible by increasing volume of production or turnover.
20. Growth of an enterprise can be either through (a) internal expansion, or (b) external expansion.
21. Six requirements for value chain management: 1. Coordination and Collaboration; 2. Technology Investment, 3. Organisational Process, 4. Leadership, 5. Employee/Human Resources, 6. Organisational Culture and Attitudes.

Words That Matter
1. Franchising: Franchising is an arrangement through which the manufacturer or sole distributor of a trade marked product or service gives exclusive rights of local distribution to independent retailers in return for royalties and conformance to standardized operating procedures.
2. Diversification: Diversification relates to addition of similar products/services to the original one.
3. Franchisor: The owner or person offering the franchise is known as the franchisor.
4. Franchisee: The franchisee is the person who purchases the franchise and is given the opportunity to enter a new business with a better chance to success than if he or she were to start a new business from nothing.
5. Take over: Take over or Acquisition is enveloping in itself a range of acquisition transactions by a firm.
6. Merger: Merger is the combining of two firms into a single large firm.
7. Creativity: It means bringing something new into existence.
8. Innovation: It refers to performing a task in a new way.
9. Modernisation: Modernisation refers to use of new technology, new processor, new machines in the process of production.
10. Direct competition: It refers to the competitions in which various enterprises producing close substitutes try to increase the sale of their product.
11. Indirect competition: It is a type of competition in which the enterprises compete not only for price but other references about the product.
12. Diversification: It is a process of adding new products or markets to the existing, by an enterprise.
13. Internal Expansion: It is the gradual increase in the activities of the concern.
14. External Expansion: It is a business combination where two or more firms combine and expand their business activities.
15. Consolidation: In a consolidation, a new firm is created after the merger, and both the acquiring firm and the target firm stockholders receive stock in this firm.

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Cost – CBSE Notes for Class 12 Micro Economics

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Introduction

This chapter gives a detailed version of cost and its types, related numericals and the
relationship between them.

Cost In Economics

1. Cost of producing a good, in Economics is the sum total of all the,
(a) Direct expenditure (actual money expenditure of a firm on purchasing goods or hiring factor services, called explicit cost) and
(b) Indirect expenditures (imputed value of the owners estimated value of inputs provided, called ‘implicit cost’) and
(c) Certain minimum profit (refers to that amount of profit which a producer must get in the long run to continue to produce the given goods, called ‘normal profit’.)
So, the sum total of explicit cost, implicit cost and normal profit is called economic cost.
2. Explicit Cost:
(a) It refers to the actual money expenditure of a firm on purchasing goods or hiring factor services and non-factor inputs (like raw material, electricity, fuel etc.)
(b) In other words, “explicit cost are those cash payments which the firm makes to outsiders for their goods and services.”
(c) For example—explicit cost of biscuit factory consists of flour, milk, sugar etc. purchased from outside and rent, electricity, wages, interest etc paid to factor of production.
3. Implicit Cost:
(a) Implicit cost is the imputed or estimated value of inputs supplied by the owner of the firm himself.
(b) In other words, Implicit costs are cost of self-supplied factors of production, which are generally not recorded in firm’s account book.
(c) Implicit costs of a biscuit factory are imputed rent of owner’s own factory building,imputed wages for owner’s working as a manager himself, imputed interest on his money capital used in the factory, depreciation.
Short Run Cost
1. Cost function shows functional relationship between output and cost of production. It
gives the least cost combination of inputs corresponding to different levels of output.
Cost function is given as:
C = f(X), ceteris paribus, where, C = Cost and X = Output
2. Short Run cost are those in which some factors of production are fixed and others are variable. So, it is divided into two parts:
(a) Fixed costs (b) Variable costs
Total Fixed Cost (Supplement/Indirect/Overhead Cost)
1. Fixed costs are those costs of production which do not change with a change in output.
2. These are the costs incurred on fixed factors, like rent of land and building, interest, etc. These are unavoidable contractual costs.
3. Fixed costs are also called overhead costs or general costs because these are common for all the units produced. These costs are also called supplementary costs or indirect costs.
4. The shape of Total fixed Cost is horizontal (Parallel to X-Axis). They have to be incurred when the output is large or small or even zero.
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Total Variable Cost (Prime/Direct Cost)
1. The cost incurred on variable factors of production is known as TVC.
TVC = TC – TFC
2. TVC is very much related with the production and fluctuates with the fluctuation in production. In case of zero level of production, TVC would also be zero.
3. For example, Wages of casual labour, payment for raw material, etc.
4. The shape of Total Variable Cost is Inverse S-shape because of Law of variable Proportion. There are two phases on which shape of total variable cost depends.
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(a) In the first phase, TVC increase at a to lower cost of production. This is because of proper utilization of fixed factor by employing more units of variable factor, specialization and division of labour. diminishing rate, [concave shape] i.e., every additional unit of output produced leads
(b) In the second phase, TVC increase at an increasing rate, [convex shape]
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i. e., every additional unit of output produced leads to higher cost of production. This is because of non-optimal combination of variable factor with the fixed factor.
Total Cost
1. During production, the expenditure incurred on various factors of production is known as total cost.
2. The thing, is has to remember, is that enterprise is one of the factors of production and the return of enterprise is normal profit. So, normal profit is also included in total cost.
3. In other words, it is a sum of total fixed cost and total variable cost.
TC = TFC + TVC
4. The shape of Total Cost is Inverse S- shaped because of law of variable Proportion.
(a) TC is divided into two parts TFC and TVC such that
TC = TFC + TVC.
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(b) TFC curve is a horizontal line parallel to the x-axis.
(c) TVC is inverse S-shaped starting from the origin due to law of variable proportion.
(d) TC is aggregate of TFC and TVC. TC curve is inverse S-shaped starting from the level of fixed cost. The reason behind it shape is the law of variable proportion.
Average Fixed Cost (AFC)
1. The per unit cost incurred on fixed factors of production is known as average fixed cost.
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2. AFC falls as output increases because AFC
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3.The shape of AFC curve is a rectangular hyperbola as area under AFC curve (i.e. total fixed cost) remains same at different levels of output.
Average Variable Cost (AVC)
1. The per unit cost incurred on variable factors of production is known as AVC.
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2. Average Variable Cost is U-shaped because of Law of Variable Proportion.
(a) As we know the shape of AVC depends upon the shape of TVC. Initially, TVC increases at diminishing rate (because Total Product Increases at increasing Rate), that makes the AVC to fall.
(b) Thereafter, TVC increases at increasing rate(because Total Product Increases at diminishing Rate), that makes the average variable cost to rise.
(c) So, from inverse S-shape, TVC curve, we derive the U shape AVC curve. It can also be explained with the help of the following schedule and diagram.
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Average Total Cost/Average Cost (ATC)
1. The per unit cost incurred on various factors of production is known as average cost. In other words, it is the sum total of average variable cost and average fixed cost.
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2. Average Cost is U-Shaped because of Law of variable proportion:
(a) The shape of average cost (AC) depends upon total cost (TC).
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(b) Initially, total cost (TC) increases at a diminishing rate (Total Product increases at Increasing rate), which makes its average, i.e., average cost (AC) to fall, then reaches its minimum point.
(c) Thereafter, total cost (TC) increases at increasing rate (Total Product increases at diminishing rate), which makes the average cost (AC) to rise. This type of production behaviour shows operation of law of variable proportion.
3. Average Cost is also U-shaped because of Average Variable Cost and Average Fixed Cost:
(a) In the beginning, we find that as output increases both AVC and AFC fall, therefore AC curve falls sharply.
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(b) When AVC has started rising and AFC is falling, AC may continue to fall if the fall in AFC is more than the rise in the AVC curve.
(c) But with further increase in output, AC would
start increasing because the rise in AVC offsets the fall in AFC.
(d) Therefore, the shape of the AC curve would be U-shaped—first falling and then rising.

Marginal Cost
1. The cost incurred on additional unit of output is known as Marginal cost.
(a) As we know the shape of MC depends on the shape of TVC or TC. Let us suppose TVC.
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(b) Initially, TVC increases at a diminishing rate (Total Product increases at Increasing rate), which makes the gap of TVC, i.e. MC to fall.
(c) Thereafter, TVC increases at an increasing rate (Total Product increases at diminishing rate) which makes the marginal cost to rise.
(d) So, from inverse S-shape TVC curve, we derive U shape MC curve. It can be explained with the-help of following schedule and diagram.
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Relationship Between the cost and curve

Relationship between AC and MC
1. The relationship between marginal cost anci average cost can be shown with the help of schedule.
The table given below shows the marginal costs, total costs and average costs at different levels of output.
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(a) When MC is less than AC, AC falls (because MC pulls AC down). It can be seen from the first three units of the table.
(b) When MC = AC, AC is constant and at its minimum.
It can be seen from the fourth unit of the table.
(c) When MC is more than AC, AC rises (because MC pulls up AC). It can be seen from the fifth unit of the table.
2. The relationship between marginal cost and ave]rage cost with the help of Diagram:
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(a) As long as MC is below AC, AC curve falls till intersection at point E.
(b) When MC curve comes to fall, it falls more rapidly than AC curve and reaches its minimum point B earlier than the AC curve reaches its minimum point E.
Therefore, MC curve is rising from B to E whereas AC curve is still falling from A to E.
(c) When MC curve is rising, it cuts the AC curve at its minimum point E and after that point MC is above than AC.
Relationship between TC and MC
1. When Marginal Cost falls, Total Cost increases at a diminishing rate.
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2. When Marginal Cost is minimum (at point P), Total Cost is at its inflexion point (at point P₁).
3.When Marginal Cost rises, Total Cost increases at an increasing rate.
Relationship between Average Cost, Average Variable Cost and Marginal Cost –
1. As long as MC curve is below than AVC and AC Curve, AVC and AC curve fall till their intersection at a point E and E₁
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2. When MC curve comes to fall, it falls much rapidly than AVC and AC curves and reaches its minimum point A earlier than AVC and AC Curve reaches their minimum point E and E₁
Therefore, MC Curve is rising from A to E whereas AVC is still falling from B to E and similarly, MC is rising A to E₁ and AC still falls from C to E₁
3. When MC curve is rising it cuts the AVC and AC curves at their minimum point E and E₁
Thereafter, AVC and AC curve rise because MC is above than AVC and AC curves.
Relationship between Average Variable Cost and Marginal Cost
1.Both AVC and MC curve are U-shaped reflecting the law of Variable proportion.
2. The minimum point of AVC curve (point b) will always occur to the right of the minimum point of MC curve (point a).
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3. When AVC is falling, MC is below AVC.
4. When AVC is rising, MC is above AVC
5. When AVC is neither falling nor rising, MC = AVC (point b).
6. There is a range over which AVC is falling and MC is rising. This range is between the v output levels X_a and X_b.

Words that Matter

1. Cost in economics: It is the sum total of explicit cost, implicit cost and certain minimum profit (normal profit).
2. Explicit Cost: It refers to the actual money expenditure of a firm on purchasing goods or hiring factor services and non-factor inputs (like raw material, electricity, fuel, etc.)
3. Implicit Cost: Implicit cost is the imputed or estimated value of inputs supplied by the owner of the firm himself.
4. Cost function: It shows functional relationship between output and cost of production. It gives the least cost combination of inputs corresponding to different levels of output.
5. Short Run Cost: Short run cost are those in which some factors of production are fixed and others are variable.
6. Total Fixed Costs: Total Fixed costs are those costs of production which do not change with a change in output.
7. Total Variable Cost: The cost incurred on variable factors of production is known as TVC.
8. Total Cost: During production, the expenditure incurred on various factors of production is known as total cost.
9. Average Fixed Cost: The per unit cost incurred on fixed factors of production is known as average fixed cost.
10. Average Variable Cost: The per unit cost incurred on variable factors of production is known as AVC.
11. Average Total Cost/Average Cost (ATC): The per unit cost incurred on various factors of production is known as average cost. In other words, it is the sum total of average variable cost and average fixed cost.
12. Marginal Cost: The cost incurred on additional unit of output is known as Marginal cost.

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Consumer Equilibrium – CBSE Notes for Class 12 Micro Economics

CBSE NotesCBSE Notes Micro EconomicsNCERT Solutions Micro Economics

Introduction

This chapter consists of a detailed account of concepts of Utility, Law of Diminishing Marginal Utility, Budget line, Budget Constraint, Monotonic Preferences, Indifference Curve, Consumer Equilibrium in Cardinal (single and several Commodities) and Ordinal (indifference curve) Approaches.

Utility

1. Utility is the power or capacity of a commodity to satisfy human wants. Alternatively, utility of a commodity means the amount of satisfaction that a person gets from consumption of a good or service.
2. There are two types of Utility:

1. Cardinal Utility Approach (Marginal Utility Analysis or Marshall Utility Analysis):
   • It states that the satisfaction the consumer derives by consuming goods and services can be measured with a number.
   • Cardinal utility is measured in terms of utils (the units on a scale of utility or satisfaction).
   • According to cardinal utility the goods and services that are able to derive a higher level of satisfaction to a consumer will be assigned higher utils and goods that result in a lower level of satisfaction will be assigned lower utils.
   • Cardinal utility is a quantitative method that is used to measure consumption satisfaction.
2. Ordinal utility Approach (Indifference Curve Analysis or J.R. Hicks analysis):
   •  It states that the satisfaction the consumer derives from the consumption of goods and services cannot be measured in numbers.
   • Rather, ordinal utility uses a ranking system in which a rank is provided to the satisfaction that is derived from consumption.
   • According to ordinal utility, the goods and services that offer a customer a higher level of satisfaction will be assigned higher ranks and the goods and services that offer a lower level of satisfaction will be assigned lower ranks.
   • Ordinal utility is a qualitative method that is used to measure consumption satisfaction.

Cardinal Utility

3. Total utility is the total psychological satisfaction a consumer obtains from consuming a given amount of a particular good. Alternatively, total utility is the sum of marginal utilities obtained from consumption of successive units of a commodity. It is measured in utils.
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TU = MUj + MU2 + MU3 + MUN
= IMU

 For example,
4. Marginal utility is the additional utility derived from consumption of an additional unit of a commodity.
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5.

1. Law of diminishing marginal utility states that marginal utility derived from the consumption of a commodity declines as more units of that commodity are consumed.
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2. It’s can be seen from the above schedule that total utility increases at a diminishing rate, when marginal utility falls.
3. Law of diminishing marginal utility will operate only when consumption is a continuous process. For example, if one sandwich is consumed in the morning and another in the afternoon, the second sandwich may provide equal or higher satisfaction as compared to the first one.
4. Law of diminishing marginal utility will not be applied with regard to education/ knowledge because every effort to get education/ knowledge increases the utility.

6. Relationship between marginal utility and total utility:
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1. When MU decreases, TU increases at a diminishing rate. (As shown in graph till consumption level OQ).
2. When MU is zero, TU is constant and maximum at P.
3.  When MU is negative, TU starts diminishing.

Consumer Equilibrium Under Marginal Utility Analysis (Cardinal Approach)

1. Consumer’s Equilibrium refers to a situation where a consumer gets maximum satisfaction out of his given money income and given market price.
2. Consumer’s equilibrium through utility analysis can be ascertained with reference to:

1. A single commodity
2. Two or several commodities

(a) Single Commodity Consumer Equilibrium:

(i) When purchasing a unit of a commodity, a consumer compares its price with the expected utility from it. Utility obtained is the benefit, and the price payable is the cost. The consumer compares benefit and the cost. He will buy the unit of a commodity only if the benefit is greater than or at least equal to the cost.
(ii) Equilibrium Conditions for Single Commodity Consumer Equilibrium
• Necessary Condition
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Where, MU of one rupee refers to the utility obtained from the purchase of commodities with one rupee.
In particular, the condition (a) says that the marginal utility of a product in terms of money should be equal to its price.
Sometimes, this is loosely stated as Marginal utility is equal to price, i.e.
MU = Price.
-> If MU > Price
-> As a rational consumer, he keeps on going to purchase an additional unit of a commodity as long as MU = Price.
-> MU > Price implies when benefit is greater than cost and whenever benefit is greater than cost a consumer keeps on consuming additional unit of a commodity till MU = Price.
-> It is so because according to the law of diminishing marginal utility, MU falls as more is purchased. As MU falls, it is bound to become equal to the price at some point of purchase.
-> If MU< Price
-> As a rational consumer he would have to reduce the consumption of a commodity as long as MU=Price.
-> MU < Price implies when benefit is less than cost and whenever benefit is less than cost, consumer keeps on decreasing the additional unit of a commodity till MU = Price.
-> It is so because according to the law of diminishing marginal utility, MU rises as less units are consumed. As MU rises, it is bound to become equal to the price at some point of purchase.
• Sufficient Condition: Total gain falls as more is purchased after equilibrium. It means that consumer continues to purchase so long as total gain is increasing or at least constant.
-> It can be explained with the help of the following schedule and diagram:
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Suppose, the price of commodity X in the market is Rs.3 per unit. It means he has to pay Rs.3 per unit. Suppose, the utility obtained from the first unit is 5 utils (= Rs.5). The consumer will buy this unit because the utility of this unit is greater than the price. Whether the consumer consumes second unit or not depends on the utility obtained from the second unit. Suppose, it is 4 utils (= Rs.4). He will buy the second unit also. Again, suppose the utility of the third unit is 3 utils (= Rs.3). The price paid is also Rs.3. Since the utility equals to price he will buy the third unit also. Consumer will not buy the fourth unit because utility of this unit is 2 utils (= Rs.2) which is less than the price. It is not worth buying the fourth unit. The consumer will restrict his purchase to only 3 units.

The difference between utility and price of a unit of a commodity represents the gain to the consumer from that unit. For example, utility of first unit of X is Rs.5 and price paid is Rs.3, The gain is Rs.2 (= 5 – 3). Similarly, gain from the second unit is Rs.1 and from the third unit is zero. The total gain from the three units is Rs.3 (= 2 + 1 + 0). Marginal Gain from the 4th unit is negative, i.e. -1 (= 2 – 3). Total gain from 4 units is Rs.2 (= 2 + 1 + 0 – 1). The consumer maximises gain when he buys only 3 units.

The conclusion is that in a single commodity case a consumer makes purchases only upto the point where MU = Price.

In the above diagram, consumption (demand) is recorded on the horizontal axis and marginal utility (price) is recorded on the vertical axis.

The MU curve is downward sloping from left to right. It is because it is assumed that there is inverse relation between consumption and marginal utility. MU is measured in terms of rupee and it is assumed marginal utility in terms of one rupee (MU_R). According to the theory, the consumer compares MU (the benefit) with the price (the cost) and makes purchase upto the MU = Price level. If we assume that market price is₹3 per unit, the consumer will buy exactly 3 units. The consumer maximizes gains at 3 units. The equilibrium purchase is at E.
In a single commodity case a consumer is in equilibrium when marginal utility equals to the price.
-> If Marginal utility of Rupee is not equal to one, then the consumer equilibrium with the help of schedule is:
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Suppose that the price of apple is 8 and marginal utility of a rupee is 3 utils.
It is clear from the above schedule that initially MU in terms of money is greater than the price of apple. For example, from consumption of the first apple, the consumer gets utility equal to 30 utils or utility worth Rs.10 (= 30 + 3) whereas he sacrifices utility of ?8 in the form of price. Thus, he gets benefit of Rs.2 (= 10 – 8) from the first apple. So, he will buy it.

Making such comparisons for successive units till the consumption level of the 3rd unit at which MU in terms of money (i.e., 8) becomes equal to its price (i.e., 78). Thus, at the level of 3 apples, the consumer reaches the state of equilibrium because the above mentioned condition of equilibrium MU = P_ is met here.
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-> Derivation of Demand curve through the MU = Price for single commodity consumer equilibrium: As we know a consumer purchases a good up to the point where marginal utility of the good becomes equal to the price of that good.
MU = Price
Now, suppose that the price of the good falls and therefore, it becomes lower than the MU. It means that MU is now greater than price.
MU > Price
Since MU is greater than the price, it means benefit is greater than the cost. It will induce the consumer to buy more units of the goods. In fact, the consumer must buy to reach equilibrium again. It shows that when price of goods falls, its demand rises and the consumer will continue to buy more units until MU falls enough to be equal to the price again. It can be explained with the help of the diagrams given on next page.
It can be seen from the given diagrams that Figure B is derived from Figure A. In figure A, initially, consumer equilibrium is attained at point E, where MU (10) = Price (10). Corresponding to point E, we derive point E₁ in figure B.
Due to fall in price (suppose from 10 to 8), MU > Price at the given quantity. So, we can say that benefit is greater than cost and the consumer increases the quantity till MU = Price condition is attained at F. Corresponding to point F, we derive the point F₁( in figure B. So, by joining point E₁ and F₁ together, we derive the demand curve.
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-> Given above is the utility schedule of a consumer for commodity X. The price of the commodity is Rs. 6 per unit. How many units should the consumer purchase to maximize satisfaction? (Assume that utility is expressed in utils and 1 util = Rs. 1).
We know that the equilibrium condition for a consumer, in case of a single commodity, is
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condition is satisfied, if the consumer purchases 4 units. (At this level, MU_x = 6 utils, MU_R = 1 and P_x = Rs. 6), i.e. 6/1 = 6.
The consumer will purchase 4 units as MU is equal to price at the 4th unit. The consumer will not purchase less than 4 units as MU will be greater than the price and there will be scope for increasing the total satisfaction by purchasing more units. If the consumer buys more than 4 units, MU becomes less than the price is paid. Therefore, benefit is less than cost. So, the consumer decreases the quantity to increase the satisfaction.

(b) Two Commodities Consumer Equilibrium (Law of Equi-Marginal Utility or Law of Substitution or Gossen’s Second Law or Law of Maximum Satisfaction)
(i) According to the two commodities consumer equilibrium or law of Equi-marginal utility, a consumer gets maximum satisfaction, when ratios of MU of two commodities and their respective prices are equal.
(ii) Conditions of Consumer’s Equilibrium In case of Two Commodities:
Necessary Condition:
Marginal utility of last rupee spent on each commodity is same.
Suppose there are two commodities, X and Y respectively.
So, for commodity X, the condition is,
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Sufficient Condition:
Expenditure on commodity X+Expenditure on commodity Y=Money Income.
In other words, marginal utility falls as more and more units of a commodity are consumed. This condition must be satisfied to attain the necessary condition,
Similarly, for commodity Y, the condition is,
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Putting equation (2) in (1), we get MU_x, MU_y
X is more than marginal utility from the last rupee spent on commodity Y. So, to attain the equilibrium consumer must increase the quantity of X, which decrease the MU_x and decrease the quantity of Y which will increase the MU_y. Increase in quantity of X and decrease in quantity of Y continue till commodity X is less than marginal futility from the last rupee spent on commodity Y. So, to attain the equilibrium the consumer must decrease the quantity of X, which will increase the MU_x and increase the quantity of Y, which will decrease the MU . Decrease in quantity of X and increase in quantity of Y continues till MU_x=MU_y .
the consumer will spend all his income on one commodity, which is highly unrealistic.
-> This can also be explained with the help of the following numerical example and diagram:
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Let us now discuss the law of equi-marginal utility with the help of a numerical example. Suppose, total money income of the consumer is Rs.6 which he wishes to spend on two commodities: ‘x’ and ‘y’ Both these commodities are priced at Rs.1 per unit. So, the consumer can buy the maximum 6 units of ‘x’ or 6 units of ‘y’. In Table given below, has shown the marginal utility which the consumer derives from the various units of ‘x’ and ‘y’.
In the diagram, MU from commodity ‘x’ is taken on OY axis and MU of commodity ‘y’ on O₁Y₁ axis. MU_x and MU_y are the marginal Utility curves for commodities ‘x’ and ‘y’ respectively.

From the above table and figure, it is obvious that the consumer will spend the first rupee (shown in brackets) on commodity ‘x’, which will provide him utility of 26 utils.

The second rupee and the third rupee will again be spent on commodity ‘X, which gives him the utility of 24 utils and 22 utils respectively. The fourth rupee will be spent on commodity Y, which gives him the utility of 21 utils. To reach the equilibrium, consumer should purchase that combination of both the goods, in which MU of ‘x’ and ‘y’ are equal, i.e. MU_x = MU_y (as prices of both the goods are same). It happens at point ‘E’, when MU of 5th rupee spent on ‘y’ and MU of 6th rupee spent on ‘x’ or MU of 5th rupee spent on ‘x’ and MU of 6th rupee spent on ‘y’ are the same, i.e. 20 utils of 133 utils will be obtained by spending his income of Rs. 6. It reflects the state of consumer’s equilibrium. If the consumer spends his income in any other order, total satisfaction will be less than 133 utils.
-> Derivation of demand curve for two commodities consumer equilibrium:
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The law states that a consumer is in equilibrium when the ratio of MU to price in case of each good consumed is the same. In two goods, X and Y, a consumer is in equilibrium when,
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Given that the consumer is in equilibrium and price of X falls. Due to this change equilibrium equality converts into the following inequality.
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It means, marginal utility from the last rupee spent on commodity X is more than marginal utility from the last rupee spent on commodity Y. So, to attain the equilibrium the consumer must increase the quantity of X, which decrease the MU . and decrease the quantity of Y, which will increase the MU .
Increase in quantity of X and decrease in quantity of Y continue till
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It can be seen from the above diagrams that Figure B is derived from Figure A. In figure A, initially, the consumer equilibrium is attained at point E, where
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=(Assuming, P_x = 10). Corresponding to point E, we derive point E:
in figure B. Due to fall in price (suppose from 10 to 8),
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quantity Q_x. It means, marginal utility from the last rupee spent on commodity X is more than marginal utility from the last rupee spend on commodity Y. So, to attain the equilibrium the consumer must increase the quantity of X, which decreases the MU_x and decreases the quantity of Y, which will increase the MU_y .
Increase in quantity of X and decrease in quantity of Y continue till
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and the new consumer equilibrium will be attained at point F. Corresponding to point F, we derive the point F ; in figure B. So, by joining point E₁ and F₁; we derive the demand curve.
> Suppose a consumer has Rs. 36 to spend on purchase of two commodities X and Y, whose prices are Rs. 6 per unit and Rs. 3 per unit respectively. The marginal utilities of the two commodities to the consumer are given in table (a) and the marginal utilities of the last rupee on both commodities are given in table (b).
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Thus, given money income (Rs. 36) and given prices of the commodities X and Y (Rs. 6 per unit and Rs. 3 per unit), we determine how the consumer allocates/distributes the total income on the purchase of both the goods.
Marginal utilities of the last rupee spent on each commodity are equal [MU_x/P_x= MU_y/P_y ]
when the following combinations of X and Y are purchased.
The consumer will however maximize his utility when he spends Rs. 36, on purchase of 3 units of X and 6 units of Y.
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(3 x Rs. 6 per unit of X) + (6 x Rs. 3 per unit of Y) = Rs. 36. Thus, only when MU_x/P_x= MU_y/P_y = MU_m = 7 utils, that the consumer will be in equilibrium and maximize his utility. The law of Equi-marginal utility is also called the Law of Maximum Satisfaction as the consumer maximizes his satisfaction, given the constraint of money income and prices of commodities.

The Consumer Budget

Let us consider a consumer who has only a fixed amount of money (income) to spend on two goods the prices of which are given in the market. The consumer cannot buy any and every combination of the two goods that she may want to consume. The consumption bundles that are available to the consumer depend on the prices of the two goods and the income of the consumer. Given her fixed income and the prices of the two goods, the consumer can afford to buy only those bundles which cost her less than or equal to her income.
Budget Line
(a) Budget line is a graphical representation which shows all the possible combinations of the two goods that a consumer can buy with the given income and prices of commodities. It is also called consumption possibility line.
(b) Suppose, a consumer has Rs. 600 as his money income and decides to spend this entire income on the purchase of two commodities X₁ and X₂ where per unit price of X₁ be Rs. 5 and that of X₂ Rs.4 per unit and these prices remain unchanged during the period in which the consumer buys these commodities.
(c) If the consumer decides to spend his entire money income of Rs. 600 on the purchase of commodity Xx, he can buy 120 units of X, and on purchase of X₂ i. e., 150 units of X₂ (shown in given figure as point R and P).
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Points P and R are two extreme possibilities of the combination of that the can purchase with his given money income and prices of commodities. By joining points P and R, we can know all the possible combinations of two commodities X₁
and X₂, which can be purchased with Rs.600. We, therefore get the budget line RP. It is also called Price income line. Thus, the budget line is the set of bundles that costs exactly M.

(d) The equation of budget line is:
P₁ X₁+ P₂ X₂ = M …(1)
Where, P₁ and P₂ are the prices of two commodities:
X₁ and X₂ are the quantities of two commodities P₁ X₁ is the expenditure on commodity X₁
P₂ X₂ is the expenditure of on commodity X₂

(e) Budget constraint shows the combination of two commodities whose expenditure can be less than or equal to money income. So, there is possibility of saving.
P₁ X₁ + P₂ X₂ < M

(f) Budget set is the collection of all bundles of pieces of goods that a consumer can buy with his income at the prevailing market prices.

(g) Market rate of Exchange is the rate at which market requires to sacrifice one commodity to gain an additional unit of another commodity is called market rate of exchange.
Change in Quantity of Good Sacrificed (P₁ X₁ ) Change in Quantity of Good Gained (P₂ X₂)
Price of Good Gained [P₁ ] Price of Good Sacrificed [P₂ ]
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This can be explained with the help of the following example and consumption possibility schedule. Let consumer’s Money Income is 10 and Price of commodity 1 is 2 and price of commodity 2 is 1. i.e., M = 10, P, = 2 and P2 = 1.
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Preferences Of The Consumer (Ordinal Utility Analysis)

1. Ordinal Utility states that the satisfaction the consumer derived from the consumption of goods and services cannot be measured in numbers.
2. Rather, ordinal utility uses a ranking system in which a rank is provided to the satisfaction that is derived from consumption.
3.

1. Consumer’s preferences are assumed to be such that between any two bundles (x₁,x₂) and (y₁,y₂), if (x₁,x₂) has more of at least one of the good and no less of the other good as compared to (y₁,y₂), the consumer prefers (x₁,x₂) to (y₁,y₂). Preferences of this kind are called monotonic preferences.
   Thus, a consumer’s preferences are monotonic if and only if between any two bundles the consumer prefers the bundle which has more of at least one of the pieces of good and no less of the other piece of good as compared to the other bundle.
2. For example,
   1. (x₁[5], xy₂[4]) bundle is monotonic preferred bundle to (y₁[4], y₂[4]) bundle because we have more quantity of one good i.e., 5(x₁) > 4(y₁) and no less quantity of other goods i.e., 4(x₂) = 4(y₂).
   2. Similarly, (x₁[5], x₂[5]) bundle is monotonic preferred bundle to (y₁[4], y₂[4]) bundle because we have more pieces/quantities of both the goods i.e., 5(x₁) > 4(y₁) and 5(x₂) > 4(y₂).
   3. But the (x₁[5], x₂[3]) bundle is not monotonic preferred bundle to (y₁[4], yy₂[4]) bundle because we have more pieces of one good i.e., 5(x₁) > 4(y₁) and less of other good i.e., 3(x₂) < 4(y₂) and condition states that we have atleast more of one good and no less of other good, but in this case 3(x₂) < 4(y₂). So, it is not monotonic preferred bundle.

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Words that Matter

1. Utility: Utility is the power or capacity of a commodity to satisfy human wants.
2. Cardinal Utility: Cardinal utility states that the satisfaction the consumer derives by consuming goods and services can be measured with number.
3. Ordinal utility: Ordinal Utility uses a ranking system in which a rank is provided to the satisfaction that is derived from consumption.
4. Total utility: Total Utility is the total psychological satisfaction a consumer obtains from consuming a given amount of a particular good.
5. Marginal Utility: Marginal utility is the additional utility derived from consumption of an additional unit of a commodity.
6. Law of diminishing marginal utility: It states that marginal utility derived from the consumption of a commodity declines as more units of that commodity are consumed.
7. Consumer’s Equilibrium: It refers to a situation where a consumer gets maximum satisfaction out of his given money income and given market price.
8. MU of one rupee: It refers to the utility obtained from purchase of commodities with one rupee.
9. Budget Line: Budget line is a graphical representation which shows all the possible combinations of the two goods that a consumer can buy with the given income and prices of commodities.
10. Budget constraint: It shows the combination of two commodities whose expenditure can be less than or equal to money income.
11. Budget set: It is the collection of all bundles of pieces of goods that a consumer can buy with his income at the prevailing market prices.
12. Market rate of Exchange: The rate at which market requires to sacrifice one commodity to gain an additional unit of another commodity is called market rate of exchange.
13. Monotonic Preferences: Consumer’s preferences are assumed to be such that between any two bundles (x₁, x₂) and (y₁ , y₂), if (x₁, x₂) has more of at least one of the good and no less of the other good as compared to (y₁ , y₂), the consumer prefers (x₁,x₂) to (y₁ , y₂). Preferences of this kind are called monotonic preferences.
14. Marginal rate of substitution: It is the rate at which a consumer is willing to sacrifice one commodity for an extra unit of another commodity without affecting his total satisfaction.
15. Indifference curve: It refers to the graphical representation of various combinations of the goods that provide the same level of satisfaction to the consumer.

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Business Arithmetic – CBSE Notes for Class 12 Entrepreneurship

CBSE NotesCBSE Notes EntrepreneurshipNCERT Solutions Entrepreneurship

1. ABC (Always Better Control) analysis can help you control your inventory better.
(i) VILFREDO PARETO (1848-1923)
(a) 20% of population owns 80% of nations wealth.
(b) 20% of employees cause 80% of problems.
(c) 20% of items accounts for 80% of firms expenditure.
(ii) EBITDA: It stands for Earnings Before interest, Tax, Depreciation and Amortization. This is arrived at by adding interest, depreciation and amortization to PBT.
2. Formulae
(i) Reorder Point = Usage Rate x Lead Time
(ii) The formulae for their calculation are:
Contribution per unit = Selling price per unit – Variable cost per unit
Contribution per unit x Number of units sold = Total Contribution
Total Contribution = Total fixed costs + Profit
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3.
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4.
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5. Verification Statement/Contribution Margin Income Statement
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6.
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7.
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D = Material consumption during the year
P = Cost of placing one order (including cost of receiving the delivery)
C = Interest payment including variable cost of storing per unit per year
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Words That Matter
1. Cash flow refers to the movement of money in and out of business.
2. Cash flow projections show how cash is expected to flow in and out of business.
3. Financial management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of fields of the enterprise.
4. Budget refers statement of estimated expenditure and estimated income.
5. Budgeting means allocation of resources.
(i) Traditional budgeting is based on reviews of historic performance and the projection of such finding to the future with modification.
(ii) Zero based budgeting is the creation of a completion of new budget from the ground up as there is no existence of its history.
6. Funds needed for day to day operation of business is known as working capital.
7. Cash Conversion Cycle: (CCC or Operating Cycle) is the length of time between a firm’s purchase of inventory and the receipt of cash from accounts receivable.
8. Operating cycle is also reference to the cash consumer cycle.
9. Gross working capital – Current Assets
10. Net working capital: Current Assets — Current Liabilities
11. Inventory control system is designed to bring about expected control over the inventory and its utilization.
12. Finance: The provision of money at the time it is wanted (F.W.Paish)
13. Capital structure: The composition of shareholder fund and the borrowed funds.
14. Pareto principle: The pareto principle (also known as the 80-20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.
15. Pareto principle is a prediction that 80% of effects come from 20% of causes.
16. SKU : Stock Keeping Unit (SKU) code
Each and every item in the inventory is to be identified with a unique code which signifies certain aspects of the item. It can be colour, size, weight or any other characteristic that is of importance in its use.
17. ABC analysis: The ABC approach states that, when reviewing inventory, a company should rate items from A to C, basing its ratings on the following rules:
(i) A—Items are goods which annual consumption value is the highest. The top 70-80%  of the annual consumption value of the company typically accounts for only 10-20% of total inventory items.
(ii) B—Items are the interclass items, with a medium consumption value. Those 15-25% of annual consumption value typically accounts for 30% of total inventory items.
(iii) C—Items are, on the contrary, items with the lowest consumption value. The lower 5% of the annual consumption value typically accounts for 50% of total inventory items.
– Always better control can help your control you inventory better.
18. Economic order quantity: Economic Order Quantity (EOQ) is the order quantity of inventory that minimizes the total cost of inventory management.
19. Reorder point: The Reorder Point (“ROP”) is the level of inventory when an order should be made with suppliers to bring the inventory up by the Economic Order Quantity (“EOQ”).
20. Carrying cost: In marketing, carrying cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, pilferage, shrinkage and insurance.
21. Contribution : When the selling price per unit is more than its variable cost, the excess is called contribution.
22. Carrying Costs: It is defined as the cost of holding and handling materials inside or outside the stores. It is important to examine the inventory level and to maintain optimum balance of inventory.
23. Order lead time: It is an average time that elapses between placing an order and receiving the goods.
24. Usage Rate: It is an average rate at which the inventory is drawn down over a period.
25. Unit of sales can be defined as the measure of what products are sold.
26. Return on investment: Return on investment equals the net income from a business or a project divided by the total money invested in the venture multiplied by 100.
27. Return on Equity: Return on equity is obtained by dividing the net income by the. equity of the investor and multiplying the result by 100.
Concept of Working Capital:
1. Gross Concept of Working Capital: Working capital refers to all the Current Assets.
2. Net Concept of Working Capital: Working capital refers to all the Current Assets – Current Liabilities.

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Balance of Payment – CBSE Notes for Class 12 Macro Economics

Introduction

This chapter gives a detailed account of balance of payment of an economy, it structure and categorisation into current and capital account. Thereafter explaining balance of trade and its differences with the balance of payment, autonomous items, accommodating items and their differences, disequilibrium in balance of payment.

Balance Of Payment, Its Structure And Components

1. The balance of payments of a country is a systematic record of all economic transactions between its residents and residents of the foreign countries during a given period of time.
Note: Economic transactions are the transactions which cause transfer of value. In the context of foreign transactions value is transferred by the residents of one country to the residents of other country. Example: when exports of goods or services are made by country A to country B, value (= export receipts) is transferred by country B to country A. Between the countries, value is transferred in terms of foreign exchange (i.e. payments are received and made in terms of foreign exchange).
2. Structure of balance payment accounting
(a) Transactions are recorded in the balance of payments accounts in double-entry book keeping.
(b) Each international transaction undertaken by country will results in a credit entry and debit entry of equal size.
(c) As international transactions are recorded in double entry accounting, the BOP accounting must always balance i.e., total amount of debits must be equal to total amount of credits.
(d) The balancing item Errors and omissions must be added to “balance” the BOP accounts.
(e) By convension, debit items and credit items are entered with a minus sign and plus sign respectively.
(f) Transactions in BOP are classified into the following five major categories:
(i) Goods and services account (ii) Unilateral transfer account
(iii) Long-term capital account (iv) Short-term private capital account
(v) Short-term official capital account
For each of these given categories, specific types of transactions are shown as debits or credits. This is shown in below table:
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The above five categories are also divided into the following two major categories of accounts in the BOP account statement:
3. Current Account (Category-I, Category-II):
(a) Meaning: Current account records imports and exports of goods and services and unilateral transfers.
(b) Components of Current Account: The main components of Current Account are:
(i) Export and Import of Goods (Merchandise Transactions or Visible Trade):
A major part of transactions in foreign trade is in the form of export and import of goods (visible items). Payment for import of goods is written on the negative side (debit items) and receipt from exports is shown on the positive side (credit items). Balance of these visible exports and imports is known as balance of trade (or trade balance).
(ii) Export and Import of Services (Invisible Trade): It includes a large variety of non-factor services (known as invisible items) sold and purchased by the residents of a country, to and from the rest of the world. Payments are either received or made to the other countries for use of these services. Services are generally of three kinds: (a) Shipping, (b) Banking, and (c) Insurance. Payments for these services are recorded on the negative side and receipts on the positive side.
(iii) Unilateral or Unrequisted Transfers to and from abroad (One sided Trans¬actions): Unilateral transfers include gifts, donations, personal remittances and other ‘oneway’ transactions. These refer to those receipts and payments, which take place without any service in return. Receipt of unilateral transfers from rest of the world is shown on the credit side and unilateral transfers to rest of the world on the debit side.
(iv) Income receipts and payments to and from abroad: It includes investment income in the form of interest, rent and profits.
4. Capital Account (Category-Ill, Category-IV, Category-V):
(a) Meaning: Capital account is that account which records all such transactions between residents of a country and rest of the world which cause a change in the asset or liability status of the residents of a country or its government.
(b) Components of Capital Account: The main components of capital account are:
(i) Loans: Borrowing and lending of funds are divided into two transactions:
• Private Transactions
-> These are transactions that are affecting assets or liabilities by individuals, businesses, etc. and other non-government entities. The bulk of foreign investment is private.
-> For example, all transactions relating to borrowings from abroad by private sector and similarly repayment of loans by foreigners are recorded on the positive (credit) side.
-> All transactions of lending to abroad by private sector and similarly repayment of loans to abroad by private sector is recorded as negative or debit item.
• Official Transactions
-> Transactions affecting assets and liabilities by the government and its agencies.
-> For example, all transactions relating to borrowings from abroad by government sector and similarly repayment of loans by foreign government are recorded on the positive (credit) side.
-> All transactions of lending to abroad by government sector and similarly repayment of loans to abroad by government sector is recorded as negative or debit item.
Private and official transactions borrowing are of two components:
(i) Commercial borrowings, referring to borrowing by a country (including government and private sector) from international money market. This involves market rate of interest without considerations of any concession, (ii) Borrowings as External Assistance, referring to borrowing by a country with considerations of assistance. It involves lower rate of interest compared to that prevailing in open market.
(ii) Foreign Investment (Investments to and from abroad): It includes:
• Investments by rest of the world in shares of Indian companies, real estate in India, etc. Such investments from abroad are recorded on the positive (credit) side as they bring in foreign exchange.
• Investments by Indian residents in shares of foreign companies, real estate abroad, etc. Such investments to abroad are recorded on the negative (debit) side as they lead to outflow of foreign exchange.
‘Investments to and from abroad’ includes two types of investments:
-> Foreign Direct Investment (FDI)
It refers to purchase of an asset in rest of the world, such that it gives direct control to the purchaser over the asset.
For example, (i) acquisition of a firm in the domestic country by a foreign country’s firm (ii) transfer of funds from the parent company abroad to the subsidiary company in the domestic country.
-> Portfolio Investment
Portfolio Investment refers to the purchase of financial asset by the foreigners that does not give the purchaser control over the asset. A foreign Institutional Investment (FII) is also a part of portfolio investment.
For instance, purchase of shares of a foreign company, purchase of foreign government’s bonds, etc. are treated as portfolio investments.
(iii) Change in Foreign Exchange Reserves
• The foreign exchange reserves are the financial assets of the government held in
• central bank. A change in reserves serves as the financing item in India’s BOP.
• So, any withdrawal from the reserves is recorded on the positive (credit) side and any addition to these reserves is recorded on the negative (debit) side.
• It must be noted that ‘change in reserves’ is recorded in the BOP account and not ‘reserves’.

Balance Of Payments And Its Types

1. Balance: It means difference between the sum of credits and sum of debits. The BOP account records three balances:
(a) Balance of trade
(b) Balance on current account
(c) Balance on capital account
2. Balance of trade: The term “balance of trade” denotes the difference between the exports and imports of goods in a country. Balance of trade refers to the visible items only. It is the difference between the value of merchandise (goods) exports and imports.
Balance of Trade = Export of visible goods – Import of visible goods.
3. Balance on current account: It is the difference between sum of credits and sum of debits on current account.
Balance on Current Account = Sum of credits on current account – Sum of debits on current account
4. Balance on capital account: It is the difference between sum of credits and sum of debits on capital account.
Balance on capital account = Sum of credits on capital account – Sum of debits
on capital account

Autonomous And Accommodating Items, Deficit In Balance Of Payment And Disequilibrium In Balance Of Payment

1. Autonomous items
(a) Autonomous items refer to those international economic transactions in the
current account and capital account which take place due to some economic motive such as profit maximisation.
(b) These transactions are independent of the state of BOP account.
(c) These items are also known as ‘above the line items’.
(d) For example, if a foreign company is making investments in India with the aim of earning profit, then such a transaction is independent of the country’s BOP situation.
2. Accommodating items
(a) Accommodating items refer to the transactions that are undertaken to cover deficit or surplus in autonomous transactions, i.e., such transactions are determined by net consequences of autonomous transactions.
(h) These items are also known as ‘below the line items’.
(c) For example, if there is a current account deficit in BOP, then this deficit is settled by capital inflow from abroad. The sources used to meet a deficit in BOP, are: (i) Foreign exchange reserves; (ii) Borrowings from IMF or foreign monetary authorities.
3. Deficit in BOP
(a) The balance of payments of a country is a systematic record of all economic transactions between the residents of foreign countries during a given period of time.
(b) The transaction in the balance of payment account can be categorized as autonomous transactions and accommodating transactions.
(c) Autonomous transactions are transactions done for some economic consideration such as profit.
(d) When the total inflows on account of autonomous transactions are less than total outflows on account of such transactions, there is a deficit in the balance of payments account.
(e) Suppose, the autonomous inflow of foreign exchange during the year is $500, while the total outflow is $600. It means that there is a deficit of $100.
4. Disequilibrium in Balance of Payments: There are a number of factors that cause disequilibrium in the balance of payments showing either a surplus or deficit. These causes are:
(a) Economic Factors
(i) Large scale development expenditure that may cause large imports.
(ii) Cyclical fluctuations in general business activity such as recession or depression.
(iii) High domestic prices may result in imports.
(b) Political Factors: Political factors instability may cause large capital outflows and hamper the inflows of foreign capital.
(c) Social Factors: Changes in tastes, preference and fashions of the people bring disequilibrium in BOP by inflowing imports and exports.

Words that Matter

1. Balance of payment: The balance of payments of a country is a systematic record of all economic transactions between its residents and residents of the foreign countries during a given period of time.
2. Current account: It records imports and exports of goods and services and unilateral transfers.
3. Capital account: Capital account is that account which records all such transactions between residents of a country and rest of the world which cause a change in the asset or liability status of the residents of a country or its government.
4. Foreign Direct Investment: It refers to purchase of an asset in rest of the world, such that it gives direct control to the purchaser over the asset.
5. Portfolio Investment: It refers to the purchase of financial asset by the foreigners that does not give the purchaser control over the asset.
6. Balance: It means difference between the sum of credits and sum of debits.
7. Balance of trade: The term “balance of trade” denotes the difference between the exports and imports of goods in a country. Balance of trade refers to the visible items only.
8. Balance on Current Account: It is the difference between sum of credits and sum of debits on current account.
Balance on Current Account = Sum of credits on current account – Sum of debits on current account
9. Balance on Capital Account: It is the difference between sum of credits and sum of debits on capital account.
Balance on capital account = Sum of credits on capital account – Sum of debits
on capital account
10. Autonomous items: It refer to those international economic transactions in the current account and capital account which take place due to some economic motive such as profit maximisation.
11. Accommodating items: It refer to the transactions that are undertaken to cover deficit or surplus in autonomous transactions, i.e., such transactions are determined by net consequences of autonomous transactions.

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Money – CBSE Notes for Class 12 Macro Economics

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Introduction:
This chapter is a detailed version of barter system and its difficulties, how money has overcome its drawbacks, money supply and its measures.

Barter System And Its Difficulties, Money And Functions Of Money:

1. Barter system of exchange is a system in which goods are exchanged for goods.
2. For example, wheat may be exchanged for cloth; house for horses, etc., or a teacher may be paid wheat or rice as a payment for his/her services.
3. Such exchange exists in the C-C Economy (commodity to commodity exchange economy).
Note: In C-C Economy C stands for commodity. C-C economy is the one in which commodities are exchanged for commodities. C-C exchange refers to barter system of exchange. Hence, C-C Economy is an economy dominated by barter system of exchange.
4. Difficulties of barter system are:-Barter system as a system of exchange is faced with the following difficulties:
(a) Lack of double coincidence of wants:
(i) Barter is possible only if goods produced by two persons are needed by each other. It is double coincidence of wants.
(ii) Double coincidence of wants means that goods in possession of two different persons must be useful and needed by each other. It is the main basis of barter system of exchange. But it is rare.
(iii) It is difficult to find such a person every time. In barter system, exchange becomes quite limited.
(b) Lack of divisibility:
(i) In commodity exchange, difficulty of dividing the commodity arises.
(ii) For example, if a car is to be exchanged for a scooter, then car can not be divided. Similarly, animals can not be divided into smaller units.
(c) Difficulty in storing wealth:
(i) It is very difficult to store wealth for future use.
(ii) Most of the goods like wheat, rice, cattle etc. are likely to deteriorate with the passage of time or involve heavy cost of storage.
(iii) Further, the transfer of goods from one place to another place involves huge transport cost.
(iv) Transfer of immovable commodities (such as house, farm, land, etc.) becomes almost impossible.
(d) Absence of common measure of value:
(i) Different commodities are of different values. The value of a good or service means the amount of other goods and services it can be exchanged for in the market. There is no common measure of value under barter system.
(ii) In this situation, it is difficult to decide in what proportions are the two goods to be exchanged.
(e) Lack of standard of deferred payment: In a barter economy future payments would have to be stated in terms of specific goods or services. This leads to following problems:
(i) There could be disagreement regarding the quality of the goods or services to be repaid.
(ii) There would be disagreement regarding which specific commodities would be used for repayment.
5. Money: Money is something which is generally acceptable as a medium of exchange
and can be converted into other assets without losing its time and value.
6. Functions of money: Functions of money can be summed up as follow:
“Money is a matter of the following four functions:
A medium, a measure, a standard, a store”
We can conclude these four functions under the following two functions:
(a) Primary function
(b) Secondary function
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(a)Primary function or Main function: Primary function includes the most important functions of money, which it must perform in an economic system irrespective of time and place. The following two functions are included under this category.
(i) Medium of exchange
• Money when used as a medium of exchange helps to eliminate the basic limitation of barter trade, that is, the lack of double coincidence of wants.
• Individuals can exchange their goods and services for money and then can use this money to buy other goods and services according to their needs and convenience.
• Thus, the process of exchange shall have two parts: a sale and a purchase.
• The ease at which money is converted into other goods and services is called “liquidity of money”.
(ii) Measure of value /unit of account
• Another important function of money is that it serves as a common measure of value or a unit of account.
• Under barter economy there was no common measure of value in which the values of different goods could be measured and compared with each other. Money has also solved this difficulty.
• As Geoffrey Crowther puts it, “Money acts as a standard measure of value to which all other things can be compared.” Money measures the value of economic goods.
• Money works as a common denominator into which the values of all goods and services are expressed.
• When we express the values of a commodity in terms of money, it is called price and by knowing prices of the various commodities, it is easy to calculate exchange ratios between them.
(b) Secondary Functions
(i) Standard of deferred payments
• Credit has become the life and blood of a modern capitalist economy.
• In millions of transactions, instant payments are not made.
• The debtors make a promise that they will make payments on some future date. In those situations money acts as a standard of deferred payments.
• It has become possible because money has general acceptability, its value is stable, it is durable and homogeneous.
(ii) Store of vaiue
• Wealth can be conveniently stored in the form of money. Money can be stored without loss in value.
• Savings are secured and can be used whenever there is a need.
• In this way, money acts as a bridge between the present and the future.
• Money means goods and services. Thus, money serves as a store of value.
• It is also known as asset function of money.
7. Characteristics or features of money:
(a) Durability: Money must be durable and not likely to deteriorate rapidly with
frequent handling. Currency notes and coins are being used repeatedly and shall
continue to do so for many years.
(b) Medium of exchange: Money is the thing that acts as a medium of exchange for the sale and purchase of goods and services.
(c) Weight: Money must be light in weight. Paper money is better than metal coins because it is light in weight.
(d) Measure of value: It not only serves as medium of exchange but also acts as a measure of value. The value of all the goods and services is expressed in terms of money.
8. Money has overcome the drawbacks of barter system: Barter system makes
the exchange process very difficult and highly inefficient. Money has overcome the
drawbacks of barter system in the following manners:
(a) Medium of exchange
(i) Under barter system, there is lack of double coincidence of wants.
(ii) With money as a medium exchange individuals can exchange their goods and services for money and then use this money to buy other goods and services according to their needs and conveniences.
(iii) A buyer can buy goods through money and a seller can sell goods for money.
(b) Measure of value
(i) Under barter system, there was no common measure of value. Money has also solved this difficulty.
(ii) As Geoffrey Crowther puts it, “Money acts as a standard measure of value to which all other things can be compared.” Money measures the value of economic goods.
(iii) Money works as a common denominator into which the values of all goods and services are expressed.
(iv) When we express the values of a commodity in terms of money, it is called price and by knowing prices of the various commodities, it is easy to calculate exchange ratios between them.
(c) Store of value
(i) Under barter system it is very difficult to store wealth for future use.
(ii) Most of the goods are perishable and their storage requires huge space and transportation cost.
(iii) Wealth can be conveniently stored in the form of money.
(iv) Money can be stored without loss in value.
(v) Money can easily be stored for future use.
(d) Standard of deferred payments
(i) Under barter system, transactions on deferred payments are not possible.
(ii) With money, the debtors make a promise that they will make payments on some future dates. In these situations money acts as a standard of deferred payments.
(iii) It has become possible because money has general acceptability, its value is stable, it is durable and homogeneous.
9. Legal definition of money:
(a) Legally, money is anything proclaimed by law as a medium of exchange.
(b) Paper notes and coins (together called currency) is money as a matter of law.
(c) Nobody can refuse its acceptance as medium of exchange.
(d) In other words, it is legal tender. It means people have to accept it legally for different payments. Currency is also called FIAT money because it commands ‘FIAT’ (order/authority) of the government.
10. Functional definition of money: Functional definition of money refers to money as anything that performs four basic functions,
(a) It serves as a medium of exchange.
(b) It serves as a standard unit of value.
(c) It serves as a means for future / contractual payments or standard of deferred payments.
(d) It serves as a store of value.
According to this, definition of money includes both notes and coins as well as chequeable deposits with the banks.
11. Narrow definition of money: Functional definition of money is a narrow definition of money. It includes only notes, coins and demand deposits as money. In other words, in its narrow definition, money includes only those things that function as money in terms of:
(a) Medium of exchange.
(b) Measure of value.
(c) Standard of future/Deferred payments.
(d) Store of value.
12. Broad definition of money:
(a) A broad definition of money also includes time deposits/term deposits with the banks or post offices as a component of money.
(b) These deposits can be converted into demand deposits on a short notice, and are “Near money assets”. Money assets and near money assets together make up a definition of money.

Money Supply And Measures Of Money Supply

1. Money supply: The volume of money held by the public at a point of time, in an economy, is referred to as the money supply. Money supply is a stock concept.
2. Measures of money supply: On the recommendation of the second working group on money supply, the RBI presented four measures of money supply in its 1977 issues of RBI Bulletin, namely M₁, M₂, M₃ and M₄.
Measures of M₁ include:
(a) Currency notes and coins with the public (excluding cash in hand of all commercial banks) [C]
(b) Demand deposits of all commercial and co-operative banks excluding inter-bank deposits. (DD),
Where demand deposits are those deposits which can be withdrawn by the depositor at any time by means of cheque. No interest is paid on such deposits.
(c) Other deposits with RBI [O.D]
M₁ = C + DD + OD
Where, Other deposits are the deposits held by the RBI of all economic units except the government and banks. OD includes demand deposits of semi¬government public financial institutions (like IDBI, IFCI, etc.), foreign central banks and governments, the International Monetary Fund, the World Bank, etc.
Measures of M₂:
(i) M₁ [C + DD + OD]
(if) Post office saving deposits
Measures of M₃:
(i) M₁
(ii) Time deposits of all commercial and co-operative banks.
Where, Time deposits are the deposits that cannot be withdrawn before the expiry of the stipulated time for which deposits are made. Fixed deposit is an example of time deposit.
Measures of M₄:
(i) M₃
(ii) Total deposits with the post office saving organization (excluding national savings certificates).
3. High-powered money: High-powered money is money produced by the RBI and the government. It consists of two things: (a) currency held by the public and (b) Cash reserves with the banks.

Words that Matter

1. Barter system: Barter system of exchange is a system in which goods are exchanged for goods.
2. Double coincidence of wants: It means that goods in possession of two different persons must be useful and needed by each other.
3. Money: Money is something which is generally acceptable as a medium of exchange and can be converted into other assets without loosing its time and value.
4. Legal definition of money: Legally, money is anything proclaimed by law as a medium of exchange. Paper notes and coins (together called currency) is money as a matter of law.
5. FIAT Money: It is defined as a money which is under the ‘FIAT’ (order/authority) of the government to act as a money.
6. Functional definition of money: Functional definition of money refers to money as anything that performs four basic functions. (Medium of exchange, standard unit of value, standard of deferred payments, store of value)
7. Narrow definition of money: Functional definition of money is a narrow definition of money. It includes only notes, coins and demand deposits as money.
8. Broad definition of money: A broad definition of money also includes time deposits/ term deposits with the banks or post offices as a component of money.
9. Money Supply: The stock of money held by the public at a point of time, in an economy, is referred to as the money supply. Money supply is a stock concept.
10. High-powered money: It is money produced by the RBI and the government. It consists of two things: (i) currency held by the public and (ii) Cash reserves with the banks.
11. Demand deposits: These are the deposits that can be withdrawn by the depositor at any time by means of cheque. No interest is paid on such deposits.
12. Time deposits: These are the deposits that cannot be withdrawn before the expiry of the stipulated time for which deposits are made. Fixed deposit is an example of time deposit.
13. Other deposit measures of M₁: Other deposits are the deposits held by the RBI of all economic units except the government and banks. OD includes demand deposits of semi-government public financial institutions (like IDBI, IFCI, etc.), foreign central banks and governments, the International Monetary Fund, the World Bank, etc.

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Non-Competitive Market – CBSE Notes for Class 12 Micro Economics

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Introduction

This chapter explains non competitive market forms (monopoly, monopolistic competition and oligopoly), their features and differences.

Monopoly

1. Meaning:
(a) ‘Mono’ means single and ‘poly’ means seller, i.e., single seller.
(b) Monopoly is a market situation where there is a single firm selling the commodity and there is no close substitute of the commodity sold by the monopolist.
2. Reasons of Monopoly:
(a) Grant of patent rights
(i) When a company introduces a new product or new technology it applies to the government to grant it patent certificate by which it gets exclusive rights to produce new product or use new technology.
(ii) Patent rights prevent others to produce the same product or use the same technology without obtaining license from the concerned company. Patent rights are granted by the government for a certain number of years.
(iii) For example, Patent certificate was granted to Xerox company for copying machines invented by it, thereby giving rights to monopoly.
(b) Licensing by Government
(i) A monopoly market emerges when government gives a firm license, i.e. exclusive legal rights to produce a given product or service in a particular area or region.
(ii) For example Previously Delhi Vidyut Board (Govt. Board) had the exclusive right to distribute electricity in Delhi. Now after privatization the same rights have been given to two private companies with exclusive areas to serve.
(c) Forming a Cartel
(i) A Cartel is a group of firms which jointly set output and prices so as to exercise monopoly power.
(ii) For example, In 1960, some oil producing companies formed a cartel, called OPEC (Organisation of Petroleum Exporting Countries).
3. Features of Monopoly:
(a) Single Seller
(i) There is only one seller or producer of a commodity in the market.
(ii) As a result, the monopoly firm has full control over the supply of the commodity.
(iii) The monopolist may be an individual, a firm, a group of firms or a government itself.
(iv) Naturally, a monopoly firm can exploit buyers by charging almost any price for its product because of exclusive control over the product.
(v) Monopoly firm itself is the price maker and not the price taker.
(b) Absence of close substitutes of product
(i) The product sold by the monopolist has no close substitute.
(ii) Though, some substitutes of the product may be available, yet they are not close substitutes in the sense that such substitutes are not identical products.
(c) Difficult entry of a new firm
(i) The monopolist controls the situation in such a way that it becomes very difficult for a new firm to enter the monopoly market and compete with the monopolist by producing the same product.
(ii) The monopolist tries his utmost to block entry of a new firm.
(d) Price Discrimination
Price discrimination refers to the practice of charging different prices from different buyers at the same time for the same product.
(e) Price Maker
(i) A monopoly firm has market power and is itself a price-maker. It can choose any price, it likes.
(ii) Unlike perfect competition where as output increases, price remains unchanged.
(iii) In monopoly as output increases or decreases, price changes according to what consumers are willing to pay along the demand curve. It produces and supplies a product to satisfy the entire market.
(iv) It is because a monopoly firm faces the entire demand of the market, that market demand curve is said to be a constraint facing a monopoly firm.
4. Shape of demand curve under monopoly:
(a) As we know in monopoly there is a single seller or firm, that is why like an industry, single seller constitutes the entire market for the product, which has no close substitutes.
(b) So, a monopolist has full freedom and power to fix price for the product.
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(c) However, demand of the product is not in the control of monopoly firm. In order to increase the output to be sold, monopolist will have to reduce the price because of price discrimination.
(d) Therefore, a monopoly firm faces a downward sloping demand curve.
(e) The elasticity of demand curve is inelastic because of no close substitute of a commodity.
5. Shape of Average revenue and marginal revenue curve under monopoly
(a) A monopoly firm faces a downward sloping demand curve as more output can be sold only by reducing the price because of price discrimination.
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(b) As, we know, Price = Average revenue. So, when price falls means Average revenue falls and when Average revenue fall, then marginal revenue also falls but at a much faster rate. So, Marginal Revenue(MR) is less than Average Revenue (AR).

Monopolistic Competition
1. Meaning:
(a) It refers to a market situation in which there are many firms which sell closely related but differentiated products.
(b) Market for such products are toothpaste, soap, air conditioners etc.
(c) The market is called monopolistic competition since it contains both the competitive element and monopoly element.
2. Features of monopolistic competition
(a) A large number of firms:
(i) The number of firms selling similar product is fairly large, but not very large as in perfect competition.
(ii) As a result, firms are in a position to influence the price of their product due to their branji names.
(b) Product differentiation:
(i) In this type of market situation a producer can produce different products, but that products should be a close substitute to each other.
(ii) Product differentiation means differentiating the product on the basis of brand, colour, shape etc.
(iii) Due to product differentiation each firm under monopolistic competition is in a position to exercise some degree of monopoly (inspite of large number of sellers) because buyers are willing to pay different prices for the same product produced by different firms.
(iv) No doubt, producer has a control over a price, but he knows it very well to maximize the profit price has to be reduced. So, price falls under monopolistic competition due to product differentiation.
(c) Selling cost:
(i) It is the expenses which are incurred for promoting sales or inducing customers to buy a good of a particular brand.
(ii) This includes the cost of advertisement through newspaper, television and radio, and cost on each other sales promotional activities.
Note:
Persuasive Advertising: It refers to advertising so as to lure (attract) consumers avail
from one brand to another.
(d) Free entry and exit of firms:
(i) New firms can enter the market, if found profitable. Similarly, inefficient firms already operating in the market are free to quit the market if they incur losses.
(ii) It is because of this feature that like perfect competition, monopolistic competition also gives rise to normal profit.
(iii) No firm receives abnormal profit in the long run as then new firms can emerge and old ones can expand output and adjust supply with changing demand.
3. Shape of Demand Curve Under Monopolistic Competition
(a) The demand curve faced by a firm is negatively slope, (i.e. when price falls, demand rises) because the firm can sell more only by lowering the price of its product because of product differentiation.
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(b) The demand curve in monopolistic competition is highly elastic due to availability of close substitutes as a result, AR curve becomes more flatter.
4. Shape of Average revenue and marginal revenue curve under Monopolistic Competition:
(a) Like a monopoly firm, the firm under monopolistic competition also fixed the price itself subject to certain limitations.
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(b) No doubt, producer has a control over a price, but he knows it very well to maximize the profit, price has to be reduced. Price reduce means Average Revenue reduces and average revenue reduces marginal revenue but at a much faster rate. So, under monopolistic competition MR < AR.

Oligopoly

1. Meaning:
(a) The term oligopoly is derived from two Greek words: ‘oligoi’ means few and ‘poleein’ means ‘to sell.’
(b) Oligopoly is a market situation in which an industry has only a few firms (or few large firms producing most of its output) mutually dependent for taking decisions about price and output.
(c) William Fellner defines oligopoly as “Competition among the few”.
(d) In India, markets for carbonated beverages, “National Newspapers” market, mobile services provider, washing products, automobiles, cement, aluminium, etc., are the examples of oligopolistic market. In all these markets there are few firms for each particular product.
2. Types of Oligopoly:
(a) Pure or Perfect Oligopoly:
(i) In the case of pure oligopoly, firms produce homogenous products like copper, iron, steel and aluminium.
(ii) So, decisions by consumers to purchase the goods of a particular firm are influenced by the price considerations.
(b) Imperfect or Impure or Differentiated Oligopoly:
(i) In differentiated oligopoly, firms produce differentiated products such as toilet soap, cigarettes or soft drinks.
(ii) The goods produced by different firms have their own distinguishing characteristics, but they are close substitutes of each other.
(c) Collusive Oligopoly: If the firms cooperate with each other in determining price or output or both, it is called collusive oligopoly or cooperative oligopoly.
(d) Non-collusive Oligopoly: If firms in an oligopoly market compete with each other, it is called a non-collusive or non-cooperative oligopoly.
3. Features of Oligopoly
(a) Few Large Sellers:
(i) The number of sellers in an oligopoly market is small – when there are two or more than two, but not many sellers.
(ii) What matters is that these few sellers account for most of the industry’s sales.
(iii) These “few” sellers consciously dominate the industry and indulge in intense competition. Each firm is aware of that it possesses a large degree of monopoly power.
(iv) For example, the market for mobile service provider in India is an oligopolist structure as there are only few producers of mobile service provider. There exists severe competition among different firms and each firm tries to manipulate both prices and volume of production to outsmart each other.
(b) Interdependence of Decisions:
(i) Interdependence means that actions of one firm affects the actions of other firms.
(ii) Since the number of sellers is small, each firm has to take into consideration the possible reaction of its competitors, when making decisions.
(iii) The business decision of a single seller will have a substantial impact on the product price, output and profits of the rival firms.
(iv) For example in the “National Newspapers” market, when the “Economic Times” introduced invitation pricing policy—they offered the newspaper at a price of Rs.1.50 on weekdays. The Hindustan Times was forced to reduce its prices from Rs. 2.50 per copy to ? 1.50 per copy on weekdays. When Hindustan Times was celebrating its 75 years of service, they offered the newspaper at Rs. 1/- weekdays. The Times of India responded by matching the price cut.
(c) Non-Price Competition:
(i) Oligopoly firms try to avoid price competition for the fear of price war.
(ii) They use non-price competition methods like better services to customers, advertising, etc. to compete with each other.
(iii) Oligopoly firms are in a position to influence the prices. However, they follow the policy of price stability or price rigidity.
(iv) Price rigidity refers to a situation in which whether there is change in demand and supply the price tends to stay fixed.
(v) If a firm tries to reduce the price the rivals will also react by reducing their prices. Likewise, if it tries to raise the price, other firms will not do so. It will lead to loss of customers for the firm which intended to raise the price.
(vi) So, firms prefer non-price competition instead of price competition.
(d) Barriers to the entry of firms:
(i) The main reason why the number of firms is small is that there are barriers which prevent entry of firms into industry.
(ii) Patents, large capital, control over the crucial raw material etc., prevent new firms from entering into industry.
(iii) Only those who are able to cross these barriers are able to enter.
(e) Role of selling costs:
(i) Due to severe competition and interdependence of the firms various sales promotion techniques are used.
(ii) For example, T.V. commercials war between pepsi and coke.
(iii) It relies more on non-price competition.
(f) Oligopoly firms may produce either a homogeneous or a differentiated product.
(i) Oligopoly firms may sell homogeneous products such as steel, aluminium, LPG cylinders etc. They are called pure oligopolies, as the products of the respective firms are indistinguishable.
(ii) Firms producing differentiated products are called impure oligopolies.
(iii) In case of a pure oligopoly market situation rival firms will rely on “price” or “lowercosts” to compete in the market.
(iv) On the other hand, in case of impure oligopolies, with firms producing differentiated products, firms can use “product variations” and “promotional” strategies to compete.
(g) Group Behaviour:
(i) In an oligopoly situation, there are a few firms who control the entire market and each firm recognizes interdependence in their decision-making.
(ii) So, price-output decisions of a particular firm directly influence the competing firms.
(iii) Instead of independent price and output strategy, oligopoly firms prefer group decisions that will protect the interest of all the firms.
(iv) Group Behaviour means that firms tend to behave as if they were a single firm even though individually they retain their independence.
(h) Indeterminate demand curve facing an oligopoly firm:
(i) The most distinguishing feature of oligopoly is the “interdependence in decision making” of the rival firms.
(ii) The consequence of such interdependence is the high degree of uncertainty regarding the reaction pattern of rival oligopolists.
(iii) Interdependence and uncertainly result in “indeterminateness of the demand curve” facing an oligopolist. The firm cannot assume that his rivals will not react to its decision regarding change in its variables.
(iv) The demand curve facing an oligopoly firm keeps shifting as rival firms react to changes made by this firm. The demand curve thus loses its definiteness and determinateness.

Words that Matter

1. Monopoly: It is a market situation where there is a single firm selling the commodity and there is no close substitute of the commodity sold by the monopolist.
2. Cartel: A Cartel is a group of firms which jointly set output and prices so as to exercise monopoly power.
3. Monopolistic competition: It refers to a market situation in which there are many firms which sell closely related but differentiated products.
4. Product differentiation: It means differentiating the product on the basis of brand, colour, shape etc.
5. Selling cost: It is the expenses which are incurred for promoting sales or inducing customers to buy a good of a particular brand.
6. Persuasive Advertising: It refers to advertising so as to lure consumers avail from
one brand to another.
7. Oligopoly: It is a market situation in which an industry has only a few firms (or few large firms producing most of its output) mutually dependent for taking decisions about price and output.
8. Pure or Perfect Oligopoly: In the case of pure oligopoly, firms produce homogenous products like copper, iron, steel and aluminium.
9. Imperfect or Differentiated Oligopoly: In differentiated oligopoly, firms produce differentiated products such as toilet soap, cigarettes or soft drinks.
10. Collusive Oligopoly: If the firms cooperate with each other in determining price or output or both, it is called collusive oligopoly or cooperative oligopoly.
(i) The MR and MC schedules
(ii) The quantities for which the MR and MC are equal
(iii) The equilibrium quantity of output and the equilibrium price of the commodity.
(iv) The total revenue, total cost and total profit in equilibrium.
11. Non-collusive Oligopoly: If firms in an oligopoly market compete with each other, it is called a non-collusive or non-cooperative oligopoly.
12. Price rigidity: It refers to a situation in which whether there is change in demand and supply the price tends to stay fixed.

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Excess Demand and Deficient Demand – CBSE Notes for Class 12 Macro Economics

CBSE NotesCBSE Notes Macro EconomicsNCERT Solutions Macro Economics
Introduction
An illustration of meaning, diagram, reasons, impacts and measures to control excess demand (inflationary gap) and deficient demand (deflationary gap); basic definitions of full employment, over full employment, involuntary unemployment, voluntary unemployment is also dealt with in this chapter.

Excess Demand And Its Related Concepts

1. Excess Demand and Inflationary Gap:
(a) When in an economy, aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand.
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(b) Inflationary gap is the gap showing excess of current aggregate demand over ‘aggregate supply at the level of full employment’. It is called inflationary because it leads to inflation (continuous rise in prices).
(c) A simple example will further -clarify it. Let us suppose that an imaginary economy by employing all its available resources can produce 10,000 quintals of rice. If aggregate demand of rice is say 12,000 quintals, this demand will be called an excess demand, because aggregate supply at level of full employment of resources is only 10,000 quintals and the result of the gap of 2000 quintals will be called as inflationary gap. In the above diagram Inflationary gap is AB because at Full employment Y*, Aggregate demand (BY*) is greater than Aggregate Supply(AY*).
2. Reasons or causes for excess demand: The main reasons for excess demand are
apparently the increase in the following components of aggregate demand:
(a) Increase in household consumption demand due to rise in propensity to consume.
(b) Increase in private investment demand because of rise in credit facilities.
(c) Increase in public (government) expenditure.
(d) Increase in export demand.
(e) Increase in money supply or increase in disposable income.
3. Impacts or effects of excess demand on price, output, employment:
(a) Effect on General Price Level: Excess demand gives a rise to general price level because it arises when aggregate demand is more than aggregate supply at a full employment level. There is inflation in economy showing inflationary gap.
(b) Effect on Output: Excess demand has no effect on the level of output. Economy is at full employment level and there is no idle capacity in the economy. Hence output can’t increase.
(c) Effect on Employment: There will be no change in thq. level of employment also.
The economy is already operating at full employment equilibrium, and hence, there is no unemployment.
4. Measures to control the excess demand: We can control the excess demand with the help of the following policy:
(a) Monetary Policy (b) Fiscal Policy
Let us discuss it in detail:
(a) Monetary Policy: Monetary policy is the policy of the central bank of a countiy to control money supply and availability of credit in the economy. The central bank can take the following steps:
(i) Quantitative Instruments or General Tools of Monetary Policy: These are the instruments of monetary policy that affect overall supply of money/credit in the economy. These instruments do not direct or restrict the flow of credit to some specific sectors of the economy. They are as under
• Bank Rate or Discount Rate (Increase in Bank Rate)
-> Bank rate is the rate of interest at which central bank lends to commercial banks without any collateral (security for purpose of loan). The thing, which has to be remembered, is that central bank lends to commercial banks and not to general public.
-> In a situation of excess demand leading to inflation
-> Central bank raises bank rate that discourages commercial banks in borrowing from central bank as it will increase the cost of borrowing of commercial bank.
❖ It forces the commercial banks to increase their lending rates, which discourages borrowers from taking loans, which discourages investment.
❖ Again high rate of interest induces households to increase their savings by restricting expenditure on consumption.
❖ Thus, expenditure on investment and consumption is reduced, which will control the excess demand.
• Repo Rate (Increase in Repo Rate):
-> Repo rate is the rate at which commercial banks borrow money from the central bank for short period by selling their financial securities to the central bank.
-> These securities are pledged as a security for the loans.
-> It is called Repurchase rate as this involves commercial bank selling securities to RBI to borrow the money with an agreement to repurchase them at a later date and at a predetermined price.
-> So, keeping securities and borrowing is repo rate.
-> In a situation of excess demand leading to inflation
❖ Central bank raises repo rate that discourages commercial banks in borrowing from central bank as it will increase the cost of borrowing of commercial bank.
❖ It forces the commercial banks to increase their lending rates, which discourages borrowers from taking loans, which discourages investment.
❖ Again high rate of interest induces households to increase their savings by restricting expenditure on consumption.
❖ Thus, expenditure on investment and consumption is reduced, which will control the excess demand.
• Reverse Repo Rate (Increase in Reverse Repo Rate):
-> It is the rate at which the central bank (RBI) borrows money from commercial bank.
-> In a situation of excess demand leading to inflation, Reverse repo rate is increased, it encourages the commercial bank to park their funds with the central bank to earn higher return on idle cash. It decreases the lending capability of commercial banks, which controls excess demand.
• Open Market Operations (OMO) (Sale of securities):
-> It consists of buying and selling of government securities and bonds in the open market by central bank.
-> In a situation of excess demand leading to inflation, central bank sells government securities and bonds to commercial bank. With the sale of these securities, the power of commercial bank of giving loans decreases, which will control excess demand.
• Increase in Varying Reserve Requirements or Legal Reserve Ratio:
-> Banks are obliged to maintain reserves with the central bank, which is known as legal reserve ratio. It has two components. One is the Cash Reserve Ratio or CRR and the other is the SLR or Statutory Liquidity Ratio.
-> Cash Reserve Ratio (Increase in CRR):
❖ It refers to the minimum percentage of a bank’s total deposits, which
it is required to keep with the central bank. Commercial banks have to keep with the central bank a certain percentage of their deposits in the form of cash reserves as a matter of law.
❖ For example, if the minimum reserve ratio is 10% and total deposits of a certain bank is Rs.100 crore, it will have to keep Rs.10 crore with the central bank.
❖ In a situation of excess demand leading to inflation, cash reserve ratio (CRR) is raised to 20 per cent, the bank will have to keep Rs.20 crore with the central bank, which will reduce the cash resources of commercial bank and reducing credit availability in the economy, which will control excess demand.
-> Statutory Liquidity Ratio (Increase SLR):
❖ It refers to minimum percentage of net total demand and time liabilities, which commercial banks are required to maintain with themselves.
❖ In a situation of excess demand leading to inflation, the central bank increases statutory liquidity ratio (SLR), which will reduce the cash resources of commercial bank and reducing credit availability in the economy.
(ii) Qualitative Instruments or Selective Tools of Monetary Policy: These instruments are used to regulate the direction of credit. They are as under:
(i) Imposing margin requirement on secured loans (Increase):
• Business and traders get credit from commercial bank against the security of their goods. Bank never gives credit equal to the full value of the security. It always pays less value than the security.
• So, the difference between the value of security and value of loan is called marginal requirement.
• In a situation of excess demand leading to inflation, central bank raises marginal requirements. This discourages borrowing because it makes people get less credit against their securities.
(ii) Moral Suasion:
• Moral suasion implies persuasion, request, informal suggestion, advice and appeal by the central banks to commercial banks to cooperate with general monetary policy of the central bank.
• In a situation of excess demand leading to inflation, it appeals for credit contraction.
(iii) Selective Credit Control (SCC) [Introduce Credit Rationing]:
• In this method the central bank can give directions to the commercial banks not to give credit for certain purposes or to give more credit for particular purposes or to the priority sectors.
• In a situation of excess demand leading to inflation, the central bank introduces rationing of credit in order to prevent excessive flow of credit, particularly for speculative activities. It helps to wipe off the excess demand.
(b) Fiscal Policy: The expenditure and revenue policy taken by the general government to accomplish the desired goals is known as fiscal policy. A general government can take the following steps:
(a) Revenue Policy (Increase Taxes):
(i) Revenue policy is expressed in terms of taxes.
(ii) During inflation the government impose higher amount of taxes causing the decrease in purchasing power of the people.
(iii) It is so because to control excess demand we have to reduce the amount of liquidity from the economy.
(b) Expenditure Policy (Reduces Expenditure):
(i) Government has to invest huge amount on public works like roads, buildings, irrigation works, etc.
(ii) During inflation, government should curtail (reduce) its expenditure on public works like roads, buildings, irrigation works thereby reducing the money income of the people and their demand for goods and services.
(c) Increase in Public Borrowing/Public Debt:
(i) This measure means that government should raise loans from public and hence borrowing decreases the purchasing power of people by leaving them with lesser amount of money.
(ii) So, government should resort to more public borrowing during excessive demand.
(iii) Government should make long term debts more attractive so that public may use their excess liquidity amount of money in purchasing these bonds, which will reduce the liquidity amount of money in the economy and thereby inflation could be controlled

Deficient Demand And Its Related Concepts

1. Deficient Demand or Deflationary Gap:
(a) When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand.
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(b) Deflationary gap is the gap showing Demand
deficient of current aggregate demand over ‘aggregate supply at the level of full employment’. It is called deflationary because it leads to deflation (continuous fall in prices).
(c) Let us suppose that an imaginary economy by employing all its available resources can produce 10,000 quintals of rice. If aggregate demand of rice is, say 8,000 quin tals, this demand will be called a deficient demand and the gap of 2000 quintals will be called as deflationary gap. Clearly here equilibrium between AD and AS is at a point less than level of full employment. Keynes called it an under employment equilibrium.
2. Reasons or causes for deficient demand: The main reasons for deficient demand are apparently the decrease in four components of aggregate demand:
(a) Decrease in household consumption demand due to fall in propensity to consume.
(b) Decrease in private investment demand because of fall in credit facilities.
(c) Decrease in public (government) expenditure.
(d) Decrease in export demand.
(e) Decrease in money supply or decrease in disposable income.
3. Impacts or effects of deficient demand:
(a) Effect on General Price Level: Deficient demand causes the general price level to fall because it arises when aggregate demand is less than aggregate supply at full employment level. There is deflation in an economy showing deflationary gap.
(b) Effect on Employment: Due to deficient demand, investment level is reduced, which causes involuntary unemployment in the economy due to fall in the planned output.
(c) Effect on Output: Low level of investment and employment implies low level of output.
4. Measures to Control the deficient demand: We can control the deficient demand with the help of the following policies:
(a) Monetary policy (b) Fiscal policy
Let us discuss it in detail:
(a) Monetary Policy: Monetary policy is the policy of the central bank of a country of controlling money supply and availability of credit in the economy. The central bank takes the following steps:
(i) Quantitative Instruments or General Tools of Monetary Policy: These are the instruments of monetary policy that affect overall supply of money/credit in the economy. These instruments do not direct or restrict the flow of credit to some specific sectors of the economy. They are as under:
• Bank Rate or Discount Rate (Decrease in Bank Rate):
-> Bank rate is the rate of interest at which central bank lends to commercial banks without any collateral (security for purpose of loan). The thing, which has to be remembered, is that central bank lends to commercial banks and not to general public.
-> In a situation of deficient demand leading to deflation,
❖ Central bank decreases bank rate that encourages commercial banks in borrowing from central bank as it will decrease the cost of borrowing of commercial bank.
❖ Decrease in bank rate makes commercial bank to decrease their lending rates, which encourages borrowers from taking loans, which encourages investment.
❖ Again low rate of interest induces households to decrease their savings by increasing expenditure on consumption.
❖ Thus, expenditure on investment and consumption increase, which will control the deficient demand.
• Repo Rate (Decrease Repo Rate):
-> Repo rate is the rate at which commercial banks borrow money from the central bank for short period by selling their financial securities to the central bank.
-> These securities are pledged as a security for the loans.
-> It is called Repurchase rate as this involves commercial bank selling securities to RBI to borrow the money with an agreement to repurchase them at a later date and at a predetermined price.
-> So, keeping securities and borrowing is repo rate.
In a situation of deficient demand leading to deflation,
❖ Central bank decreases Repo rate that encourages commercial banks in borrowing from central bank as it will decrease the cost of borrowing of commercial bank.
❖ Decrease in Repo rate makes commercial banks to decrease their lending rates, which encourages borrowers from taking loans, which encourages investment.
❖ Again low rate of interest induces households to decrease their savings by increasing expenditure on consumption.
❖ Thus, expenditure on investment and consumption increase, which will control the deficient demand.
• Reverse Repo Rate (Decrease Reverse Repo Rate):
-> It is the rate at which the central bank (RBI) borrows money from commercial bank.
-> In a situation of deficient demand leading to deflation, Reverse repo rate is decreased, it discourages the commercial bank to park their funds with the central bank. It increases the lending capability of commercial banks, which controls deficient demand.
• Open Market Operation (Purchase of Securities):
-> It consists of buying and selling of government securities and bonds in the open market by central bank.
-> In a situation of deficient demand leading to deflation, central bank purchases government securities and bonds from commercial bank. With the purchase of these securities, the power of commercial bank of giving loans increases, which will control deficient demand.
• Decrease in Varying Reserve Requirements: 
-> Banks are obliged to maintain reserves with the central bank, which is known as legal reserve ratio. It has two components. One is the Cash Reserve Ratio or CRR and the other is the SLR or Statutory Liquidity Ratio.
-> Cash Reserve Ratio (Decrease):
❖ It refers to the minimum percentage of a bank’s total deposits, which is required to keep with the central bank. Commercial banks have to keep with the central bank a certain percentage of their deposits in the form of cash reserves as a matter of law.
❖ For example, if the minimum reserve ratio is 10% and total deposits of a certain bank is Rs. 100 crore, it will have to keep Rs.10 crore with the central bank.
❖ In a situation of deficient demand leading to deflation, cash reserve ratio (CRR) falls to 5 per cent, the bank will have to keep Rs. 5 crore with the central bank, which will increase the cash resources of commercial bank and increasing credit availability in the economy, which will control deficient demand.
-> The Statutory Liquidity Ratio (SLR) (Increase):
❖ It refers to minimum percentage of net total demand and time liabilities, which commercial banks are required to maintain with themselves.
❖ In a situation of deficient demand leading to deflation, the central bank decreases statutory liquidity ratio (SLR), which will increase the cash resources of commercial bank and increases credit availability in the economy.
(ii) Qualitative Instruments or Selective Tools of Monetary Policy: These
instruments are used to regulate the direction of credit. They are as under:
• Imposing margin requirement on secured loans( Decrease):
-> Business and traders get credit from commercial bank against the security of their goods. Bank never gives credit equal to the full value of the security. It always pays less value than the security.
-> So, the difference between the value of security and value of loan is called marginal requirement.
-> In a situation of deficient demand leading to deflation, central bank decreases marginal requirements. This encourages borrowing because it makes people get more credit against their securities.
• Moral Suasion:
-> Moral suasion implies persuasion, request, informal suggestion, advice and appeal by the central banks to commercial banks to cooperate with general monetary policy of the central bank.
> In a situation of deficient demand leading to deflation, it appeals for credit expansion.
• Selective Credit Controls (SCCs):
-> In this method the central bank can give directions to the commercial banks not to give credit for certain purposes or to give more credit for particular purposes or to the priority sectors.
-> In a situation of deficient demand leading to deflation, the central bank withdraws rationing of credit and make efforts to encourage credit.
2. Fiscal Policy: The expenditure and revenue policy taken by the general government to accomplish the desired goals is known as fiscal policy. A general government has to take the following steps:
(a) Revenue Policy (Decrease in Taxes):
(i) Revenue policy is expressed in terms of taxes.
(ii) During deflation the government will impose lower amount of taxes so that purchasing power of the people be increased.
(iii) It is so because to control deficient demand we have to increase the amount of liquidity in the economy.
(b) Expenditure Policy (Increase in Expenditure):
(i) Government has to invest huge amount on public works like roads, buildings, irrigation works, etc.
(ii) During deflation government should increase its expenditure on public works like roads, buildings, irrigation works thereby increasing the money income of the people and their demand for goods and services.
(c) Decrease in Public Borrowing / Public Debt:
(i) At the time of deficient demand public borrowing should be reduced.
(ii) People will have more money and more purchasing power.
(iii) In brief, during period of deficient demand government should adopt the pricing of deficit budget.
(iv) Old taken debts from public should be finished and paid back to increase money in the market.

Full Employment, Voluntary Unemployment And Involuntary Unemployment

1. Full employment:
(i) Full employment equilibrium refers to the situation where aggregate demand is equal to aggregate supply, and all those who are able to work and willing to work (at the existing wage rate) are getting work.
(ii) Full employment doesn’t means that there is no unemployment in an economy. Unemployment also exists at full employment level because of voluntary unemployment.
2. Voluntary unemployment:
(i) Voluntary unemployment refers to the situation when a person is unemployed because he is not willing to work at the existing wage rate, even when work is available.
(ii) Suppose, if the market wage rate for MBA in the industries is Rs.8,000 a month, but
some of the qualified MBA’s refuse to accept job at Rs.8,000 a month, they will be considered as voluntarily unemployed.
3. Involuntary unemployment:
(i) Involuntary unemployment refers to a situation in which all able and willing persons to work at existing wage-rate do not find work.

Words that Matter

1. Excess Demand: When in an economy, aggregate demand exceeds “aggregate supply at full employment level”, the demand is said to be an excess demand.
2. Inflationary gap: It is the gap showing excess of current aggregate demand over ‘aggregate supply at the level of full employment’. It is called inflationary because it leads to inflation (continuous rise in prices).
3. Deficient demand: When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand.
4. Deflationary gap: It is the gap showing deficient of current aggregate demand over ‘aggregate supply at the level of full employment’. It is called deflationary because it leads to deflation (continuous fall in prices).
5. Monetary policy: It is the policy of the central bank of a country to control money supply and availability of credit in the economy.
6. Quantitative Instruments or General Tools of Monetary Policy: These are the instruments of monetary policy that affect overall supply of money/credit in the economy.
7. Qualitative Instruments or Selective Tools of Monetary Policy: These instruments are used to regulate the direction of credit.
8. Bank rate: It is the rate of interest at which central bank lends to commercial banks without any collateral (security for purpose of loan).
9. Repo rate: It is the rate at which commercial bank borrow money from the central bank for short period by selling their financial securities to the central bank.
10. Reverse repo rate: It is the rate at which the central bank (RBI) borrows moneyfrom commercial bank.
11. Open Market Operation: It consists of buying and selling of government securities and bonds in the open market by central bank.
12. Cash Reserve Ratio: It refers to the minimum percentage of a bank’s total deposits, which it is required to keep with the central bank.
13. Statutory Liquidity Ratio: It refers to minimum percentage of net total demand and time liabilities, which commercial banks are required to maintain with themselves.
14. Marginal requirement: Business and traders get credit from commercial bank against the security of their goods. Bank never gives credit equal to the full value of the security. It always pays less value than the security. So, the difference between the value of security and value of loan is called marginal requirement.
15. Moral suasion: It implies persuasion, request, informal suggestion, advice and appeal by the central banks to commercial banks to cooperate with general monetary policy of the central bank
16. Selective credit control: In this method the central bank can give directions to the commercial banks not to give credit for certain purposes or to give more credit for particular purposes or to the priority sectors.
17. Fiscal policy: The expenditure and revenue policy taken by the general government to accomplish the desired goals is known as fiscal policy.
18. Full employment equilibrium: It refers to the situation where aggregate demand is equal to aggregate supply, and all those who are able to work and willing to work (at the existing wage rate) are getting work.
19. Voluntary unemployment: It refers to the situation when a person is unemployed because he is not willing to work at the existing wage rate, even when work is available.
20. Involuntary unemployment: It refers to a situation in which all able and willing persons to work at existing wage-rate do not find work.

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Demand – CBSE Notes for Class 12 Micro Economics

CBSE NotesCBSE Notes Micro EconomicsNCERT Solutions Micro Economics

Introduction

This chapter takes into account the demand and the factors affecting it, both at the personal and market level. It highlights the law of demand, movement along the demand curve and the related changes. Explanation for the downward slope in the law of demand and exceptions to it are dealt with.

1. Demand is a quantity of a commodity which a consumer wishes to purchase at a given level of price and during a specified period of time.
In other words, demand for a commodity refers to the desire to buy a commodity backed with sufficient purchasing power and the willingness to spend.
2. Desire is just a wish for a commodity and a person can desire a commodity even if he does not have the capacity to buy it from the market whereas demand is desire backed by purchasing power that is to say whatever an individual is willing to buy from the market in a given period of time at a given price. A poor person can desire to own a car but that will not become a demand because he does not have the purchasing power to buy a car from the market.
3. Factors affecting personal (individual) demand:

(a) Price of the commodity: Inverse
relationship exists between price of the commodity and demand of that commodity.
It means with the rise in price of the commodity the demand of that commodity falls and vice-versa.
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(b) Price of related goods: It may be of two types:

1. Substitute goods
2. Complementary goods

Let us discuss it in detail,

(i) Substitute Goods: Substitute goods are those goods which can be used in place of another goods and give the same satisfaction to a consumer.
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There would always exist a direct relationship between the price of substitute goods and demand for given commodity.
It means with an increase in price of substitute goods, the demand for given commodity also rises and vice-versa. For example, Pepsi and Coke.

(ii) Complementary Goods: Complementary goods are those which are useless in the absence of another goods and which are demanded jointly.
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There would always exist an inverse relationship between price of complementary goods and demand for given commodity.
It means, with a rise in price of complementary goods, the demand for given commodity falls and vice-versa. For example pen and refill.

1. (c) Income of a Consumer: There are three types of goods:
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   For Normal Commodity: For normal commodity, with a rise in income, the demand of the commodity also rises and vice-versa. Shortly, direct relationship exists between income of a consumer and demand of normal commodity.
2. For Inferior Goods: For inferior goods, with a rise in income, the demand of the commodity falls and vice-versa.
   Shortly, inverse relationship exists between income of a consumer and demand of inferior goods.
3. For Necessity Goods: For necessity goods, whether income increases or decreases, quantity demanded remains constant.

(d) Taste and Preferences of the Consumer: Tastes, preferences and habits of a consumer also influence its demand for a commodity.
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For example, if Black and White TV set goes out of fashion, its demand will fall. Similarly, a student may demand more of books and pens than utensils of his preferences and taste.
Miscellaneous: Some of the other factors affecting the demand of a consumer are: Change in weather, change in number of family members, expected change in future price, etc.

4. Market demand refers to the quantity of a commodity that all the consumers are willing and able to buy, at a particular price during a given period of time.

5. Factors affecting Market demand:

1. Price of the commodity
2. Price of related commodity
3. Income of a consumer
4. Taste and preference of a consumer
5. Miscellaneous
6. Population Size: Demand increases with the increase in population and decreases with the decrease in population. This is because with the increase (or decrease) in population size, the number of buyers of the product tends to increase (or decrease). Composition of population also affects demand. If composition of population changes, namely, female population increases, demand for goods meant for women will go up.
7. Distribution of Income: Market demand is also influenced by change in distribution of income in the society. If income is not equally distributed, there will be less demand. If income is equally distributed, there will be more demand.

6. Demand function shows the relationship between quantity demanded for a particular commodity and the factors that are influencing it.

7. Individual demand function refers to the functional relationship between individual demand and the factors affecting the individual demand.
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8. Market demand function refers to the functional relationship between market demand and the factors affecting the market demand.
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9. Demand Schedule is a table showing different quantities being demanded of a given commodity at various levels of price. It shows the inverse relationship between price of the commodity and its quantity demanded. It is of two types:

1. Individual Demand Schedule
2. Market Demand Schedule

10. Individual demand schedule refers to a table that shows various quantities of a commodity that a consumer is willing to purchase at different prices during a given period of time.
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11. Market demand schedule is a tabular statement showing various quantities of a commodity that all the consumers are willing to buy at various levels of price. It is the sum of all individual demand schedules at each and every price.
Market demand schedule can be expressed as,
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Movement Along The Demand Curve Or Change In Quantity Demandend

1. It is based on Law of Demand which states that quantity demanded of the commodity changes due to the changes in price of the commodity.
2. The change in quantity demanded due to the change in price of the commodity is known as movement along the demand curve. It may be of two types; namely,
(a) Expansion in Demand (Increase in quantity demanded)
(b) Contraction in Demand (Decrease in quantity demanded)
3. Expansion in Demand (Increase in quantity demanded or downward movement along the demand curve):
(a) It is based on Law of demand which states that quantity demanded of the commodity rises due to the fall in price of the commodity.
(b) The rise in quantity demanded due to the fall in price of the commodity, is known as expansion in demand.
(c) It is shown in the figure given below
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• In the given diagram price is measured on vertical axis whereas quantity demanded is measured on horizontal axis. A consumer is demanding OQ quantity at OP price.
• But, due to fall in price of the commodity from OP to OP₁ the quantity demanded rises from OQ to OQ₁ which is known as expansion in demand.
4. Contraction in Demand (Decrease in quantity demanded or upward movement
along the demand curve):
(a) It is based on Law of Demand which states that quantity demanded for the commodity falls due to the rise in price of the commodity.
(b) The fall in quantity demanded due to the rise in price of the commodity is known as contraction in demand.
(c) This is shown in the figure given below:
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• In the given diagram, price is measured on vertical axis whereas quantity demanded is measured on horizontal axis. A consumer is demanding OQ quantity at OP price.
• But, due to rise in price of the commodity from OP to OP₁, the quantity demanded falls from OQ to OQ₁ which is known as Contraction in Demand.

Shift In Demand Curve Or Change In Demand

1. It is based on factor other than price. If demand changes due to the change in factors other than price, it is known as shift in demand curve.
2. It may be of two types,
(a) Increase in Demand (b) Decrease in Demand
(a) Increase in Demand:
(j) An increase in demand means that consumers now demand more at a given price of a commodity.
(ii) It’s conditions are:
• Price of substitute goods rises.
• Price of complementary goods falls.
• Income of a consumer rises in case of normal goods.
• Income of a consumer falls in case of inferior goods.
• When preferences are favourable.
(iii) In the given diagram, price is measured on vertical axis whereas quantity demanded is measured on horizontal axis. A consumer is demanding OQ quantity at an OP price.
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(iv) But, due to the change in factors other than price then demand curve shifts rightward from DD to D₁D₁.
(v) With the rightward shift in demand curve from DD to D₁D₁ the quantity demanded rises from OQ to OQ₁ which is known as increase in Demand.
(b) Decrease in Demand:
(i) A decrease in demand means that consumers now demand less at a given price of a commodity.
(ii) Its conditions are:
• Price of substitute goods falls.
• Price of complementary goods rises.
• Income of a consumer falls in case of normal goods.
• Income of a consumer rises in case of inferior goods.
• When a preference becomes unfavourable.
(iii) In the given diagram price is measured on vertical axis whereas quantity demanded is measured on horizontal axis. A consumer is demanding OQ quantity at an OP price.
Image may be NSFW.
Clik here to view.
(iv) But, due to the change in factor other than price, the demand curve shifts leftward to DD to D₁D₁
(v) With the leftward shift in demand curve from DD to D₁D₁, the quantity demanded falls from OQ to OQ₁ which is known as decrease in demand.

Causes Of Law Of Demand And Exceptions To Law Of Demand

1. There is a inverse relationship between price of the commodity and quantity demanded
for that commodity which causes demand curve to slope downward from left to right.
2. It is because of the following reasons:
(a) Income effect:
(i) Quantity demanded of a commodity changes due to change in purchasing power (real income), caused by change in price of a commodity is called Income Effect.
(ii) Any change in the price of a commodity affects the purchasing power or real income of a consumers although his money income remains the same.
(iii) When price of a commodity rises more has to be spent on purchase of the same quantity of that commodity. Thus, rise in price of commodity leads to fall in real income, which will thereby reduce quantity demanded is known as Income effect.
Image may be NSFW.
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It refers to substitution of one commodity in place of another commodity when it becomes relatively cheaper.
(ii) A rise in price of the commodity let coke, also means that price of its substitute, let pepsi, has fallen in relation to that of coke, even though the price of pepsi remains unchanged. So, people will buy more of pepsi and less of coke when price of coke rises.
(iii) In other words, consumers will substitute pepsi for coke. This is called Substitution effect.
(c) Law of Diminishing Marginal Utility:
(i) This law states that when a consumer consumes more and more units of a commodity, every additional unit of a commodity gives lesser and lesser satisfaction and marginal utility decreases.
(ii The consumer consumes a commodity till marginal utility (benefit) he gets equals to the price (cost) they pay, i.e., where benefit = cost.
(iii) For example, a thirsty man gets the maximum satisfaction (utility) from the first glass of water. Lesser utility from the 2nd glass of water, still lesser from the 3rd glass of water and so on. Clearly, if a consumer wants to buy more units of the commodity, he would like to do so at a lower price. Since, the utility derived from additional unit is lower.
(d) Additional consumer:
(i) When price of a commodity falls, two effects are quite possible:
* New consumers, that is, consumers that were not able to afford a commodity previously, starts demanding it at a lower price.
• Old consumers of the commodity starts demanding more of the same commodity by spending the same amount of money.
(ii) As the result of old and new buyers push up the demand for a commodity when price falls.
3. Exceptions to the Law of Demand are:
(a) Inferior Good or Giffen Goods:
(i) Giffen goods are a special category of inferior goods in which demand for a commodity falls with a fall in its price.
(ii) In case of certain inferior goods when their prices fall, their demand may not rise because extra purchasing power (caused by fall in prices) is diverted on purchase of superior goods.
(b) Goods expected to become scarce or costly in future:
(i) These goods are purchased by the household in increased quantities even when their prices are rising upwards.
(ii) This is due to the fear of further rise in prices.
(c) Goods of Ostentation:
(i) Status symbol goods are purchased not because of their intrinsic value but because of status or prestige value.
(ii) The same jewellery when sold at a lower price sells poorly but offered at two times the price, sells quite well.
4. Necessities:
(a) The law of demand is not seen operating in case of necessities of life such as food grain, salt, matchstick, milk for children, etc.
(b) A minimum quantity of these goods has to be bought whether the prices are high or low. In such cases, law of demand fails to operate.
5. Ignorance: Being ignorant of prevailing prices, a consumer may buy more of a
commodity when its price has gone up.
6. Emergency: In times of emergency like flood, famine or war, the households do not
behave in a normal way and consequently law of demand may not operate.

Words that Matter

1. Demand: Demand is a quantity of a commodity which a consumer wishes to purchase at a given level of price and during a specified period of time.
2. Substitute goods: Substitute goods are those goods which can be used in place of another goods and give the same satisfaction to a consumer.
3. Complementary Goods: Complementary goods are those which are useless in the absence of other good and which are demanded jointly.
4. Normal goods: For normal commodity, with a rise in income, the demand of the commodity also rises and vice-versa.
5. Inferior Goods: For inferior goods, with a rise in income, the demand of the commodity falls and vice-versa.
6. Market demand: Market demand refers to the quantity of a commodity that all the consumers are willing and able to buy, at a particular price during a given period of time.
7. Demand function: It shows the relationship between quantity demanded for a particular commodity and the factors that are influencing it.
8. Cross Price effect: When demand for one commodity is affected by the change in the price of another commodity it is known as Cross Price Effect.
9. Law of Demand: It states that price of the commodity and quantity demanded are inversely related to each other when other factors remain constant (ceteris Paribus).
10. Movement along the demand curve: The change in quantity demanded due to the change in price of the commodity is known as movement along the demand curve.
11. Expansion in demand: The rise in quantity demanded due to the fall in price of the commodity, is known as expansion in demand.
12. Contraction in demand: The fall in quantity demanded due to the rise in price of the commodity is known as contraction in demand.
13. Shift in demand: If demand changes due to the change in factors other than price, it is known as shift in demand curve.
14. Increase in demand: An increase in demand means that consumers now demand more at a given price of a commodity.
15. Decrease in demand: A decrease in demand means that consumers now demand less at a given price of a commodity.
16. Income Effect: Quantity demanded of a commodity changes due to change in purchasing power (real income), caused by change in price of a commodity is called Income Effect.
17. Substitution Effect: It refers to substitution of one commodity in place of another commodity when it becomes relatively cheaper.
18. Law of Diminishing Marginal Utility: This law states that when a consumer consumes more and more units of a commodity, every additional unit of a commodity gives lesser and lesser satisfaction and marginal utility decreases.
19. Giffen goods: Giffen goods are a special category of inferior goods in which demand for a commodity falls with a fall in its price. In case of certain inferior goods when their prices fall, their demand may not rise because extra purchasing power (caused by fall in prices) is diverted on purchase of superior goods.

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Extra Questions for Class 8 maths will help you with practice. We have selectively graded these extra questions for more practice. We request Students to solve these questions without going through solutions. If you face any difficulty in solving these Extra Questions, Please refer solutions. We would requst you to learn Vedic Maths for faster and better calculations.

Extra Questions for Class 8 Maths

Here is the list of Extra Questions for Class 8 Maths with Answers based on latest NCERT syllabus prescribed by CBSE.

• Chapter 1 Rational Numbers Class 8 Extra Questions
• Chapter 2 Linear Equations in One Variable Class 8 Extra Questions
• Chapter 3 Understanding Quadrilaterals Class 8 Extra Questions
• Chapter 4 Practical Geometry Class 8 Extra Questions
• Chapter 5 Data Handling Class 8 Extra Questions
• Chapter 6 Squares and Square Roots Class 8 Extra Questions
• Chapter 7 Cubes and Cube Roots Class 8 Extra Questions
• Chapter 8 Comparing Quantities Class 8 Extra Questions
• Chapter 9 Algebraic Expressions and Identities Class 8 Extra Questions
• Chapter 10 Visualising Solid Shapes Class 8 Extra Questions
• Chapter 11 Mensuration Class 8 Extra Questions
• Chapter 12 Exponents and Powers Class 8 Extra Questions
• Chapter 13 Direct and Inverse Proportions Class 8 Extra Questions
• Chapter 14 Factorisation Class 8 Extra Questions
• Chapter 15 Introduction to Graphs Class 8 Extra Questions
• Chapter 16 Playing with Numbers Class 8 Extra Questions

NCERT Solutions for Class 8 Maths

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Extra Questions for Class 7 Maths

Here is the list of Extra Questions for Class 7 Maths with Answers based on latest NCERT syllabus prescribed by CBSE.

• Chapter 1 Integers Class 7 Extra Questions
• Chapter 2 Fractions and Decimals Class 7 Extra Questions
• Chapter 3 Data Handling Class 7 Extra Questions
• Chapter 4 Simple Equations Class 7 Extra Questions
• Chapter 5 Lines and Angles Class 7 Extra Questions
• Chapter 6 The Triangles and its Properties Class 7 Extra Questions
• Chapter 7 Congruence of Triangles Class 7 Extra Questions
• Chapter 8 Comparing Quantities Class 7 Extra Questions
• Chapter 9 Rational Numbers Class 7 Extra Questions
• Chapter 10 Practical Geometry Class 7 Extra Questions
• Chapter 11 Perimeter and Area Class 7 Extra Questions
• Chapter 12 Algebraic Expressions Class 7 Extra Questions
• Chapter 13 Exponents and Powers Class 7 Extra Questions
• Chapter 14 Symmetry Class 7 Extra Questions
• Chapter 15 Visualising Solid Shapes Class 7 Extra Questions

NCERT Solutions for Class 7 Maths

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Extra Questions for Class 6 Maths

Here is the list of Extra Questions for Class 6 Maths with Answers based on latest NCERT syllabus prescribed by CBSE.

• Chapter 1 Knowing Our Numbers Class 6 Extra Questions
• Chapter 2 Whole Numbers Class 6 Extra Questions
• Chapter 3 Playing With Numbers Class 6 Extra Questions
• Chapter 4 Basic Geometrical Ideas Class 6 Extra Questions
• Chapter 5 Understanding Elementary Shape Class 6 Extra Questions
• Chapter 6 Integers Class 6 Extra Questions
• Chapter 7 Fractions Class 6 Extra Questions
• Chapter 8 Decimals Class 6 Extra Questions
• Chapter 9 Data Handling Class 6 Extra Questions
• Chapter 10 Mensuration Class 6 Extra Questions
• Chapter 11 Algebra Class 6 Extra Questions
• Chapter 12 Ratio and Proportion Class 6 Extra Questions
• Chapter 13 Symmetry Class 6 Extra Questions
• Chapter 14 Practical Geometry Class 6 Extra Questions

NCERT Solutions for Class 6 Maths

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NEET Result 2019: NEET Result 2019 has been Released on June 5, 2019. NEET 2019 Answer key has been released on May 5, 2019. After the exam season gets over, the results season starts. With the results of various board exams coming out, it’s only a matter of time when the results for the entrance exams are out. The important entrance exam for biology is considered as NEET. Without scoring required marks in this exam one cannot opt for MBBS after 12th standard. After the exams are over many students are eagerly waiting for the NEET result data for 2019. The result will be available for everyone to check on ntaneet.nic.in. This year it is announced that release NEET result date is on 5th June.

Direct Link to Check NEET Results 2019

NEET Result 2019

Click Here To Download NEET Final Answer Key

OMR Sheet: Click Here to download NEET 2019 OMR Sheet.

NEET Entrance Exam has been conducted on May 5, 2019. After Completion of one month, the results will be declared. To check the NEET result 2019 the applicant needs to have his/her password along with the application number. Although the date is set on June 5th, it is expected that the result will be announced before 3-4 days of 5th June. Along with the results, NTA will also the All India rank of the students. This AIR rank is used for the 15% quota applied in various medical colleges. Various admitting institutes and state counseling institutions also use this AIR. It is stated very clearly that there is no category wise list prepared by the NTA.

One important thing to note by the students is that there is no provision of re-evaluation or re-checking of the answer sheets or the results for NEET 2019. NEET 2019 was conducted on 5th May 2019.

NEET Answer Key Institutional Wise 2019

How to Check the NEET 2019 Result?

Below are the instructions were given that a candidate can follow to check their results.

• Go to your browser and type ntaneet.nic.in. Or you could also copy paste this link into your browser.
• Now the link will guide you to the homepage of NEET website.
• On this page, the candidate will be asked to fill up the application along with the password. The candidate needs to submit all these details.
• After submitting all the details, the NEET 2019 result will appear on the screen.
• There is also an option to download the NEET scorecard. You can also take a printout of this scorecard later on.

Details Mentioned on NEET 2019 Scorecard

NEET scorecard will have many details for a candidate. Mainly there are 3 sections that appear on the NEET scorecard. These are NEET AQI rank (for 15% seats), NEET AIR, and category wise cutoff list for the students. There are also a few personal details for the students. These details are

• Roll number used for NEET 2019
• Minority type
• Application number
• Nationality
• Candidate’s name
• Father’s name
• Mother’s name
• Date of birth
• Marks obtained in Biology, Physics, and Chemistry
• Total marks
• Gender
• All India quota rank
• Cut off score and percentile
• Percentile score for the candidate

NEET 2019 Cut-Off  Category Wise

With the results being declared in a few days, students are eagerly waiting to see whether they have cleared the cut-off or not. Along with the results, NTA will also declare the cut-off score. This will be printed on the backside of the scorecard. The scorecard gives the cutoff based on the percentile. Based on the last the predictions for this year’s cutoff will be

NEET Result Previous Year’s Cutoff.

Validity of NEET 2019 Result

There is good news for students who are planning to practice medicine abroad. It has been declared that the NEET 2019 score is going to be valid for 3 years from the date of declaration of the result. The MCI (medical council of India) has declared that score will be valid for 3 years via official gazette.

What are you score the same marks as someone else?

Like sports,  there is also a criterion for tie-breaker where two students having similar marks will be given the preference. There are a few guidelines for this process

• Firstly if the marks are equal than the marks of biology for both the students are considered. The one that gets the higher marks in biology gets a higher merit rank.
• If both the candidates still have the same biology marks than one with higher in chemistry is considered.
• If the marks are still the same, then the candidate with fewer mistakes is considered.
• Finally, if the marks still remain the same than age is given the preference. The student who is old is given the preference over the younger student.

NEET 2019 Counseling and Merit List

There are two types of merit that will be prepared and released in NEET 2019.

First merit list will be the All India rank quota of 15%. The name of the students that have opted for this quota will be sent to the directorate general of health-related services, ministry of family welfare and health, the government of India. After this, the candidate will be offered a seat in the counseling round.

The second round is for the candidates that did not opt for this quota. Here also, AIR will be sent to the respective authorities. Furthermore, the admission committees will be sending the applications of selected candidates to counseling. On the basis of this counseling round, admitting committees will send a separate merit list. Based on this list, medical data will be allotted to the students.

Further details regarding NEET Result 2019 will be updated daily on our website.

We hope the detailed article on NEET Result 2019 is helpful. If you have any doubt regarding this article or NEET Result 2019, drop your comments in the comment section below and we will get back to you as soon as possible.

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Maharashtra SSC Result 2019: Maharashtra State Board of Secondary & Higher Secondary Education (MSBSHSE), Pune is the conducting authority of the Maharashtra Board Exams 2019. The board is also responsible for declaring Maharashtra 10th Result 2019; apart from this, it is also responsible for announcing the result of Maharashtra HSC Result 2019.

State Board Results

The Maharashtra Board had earlier announced the time table of the Maharashtra SSC exams 2019. As per the time table, the SSC exams will commence from March 1, onwards and will end on March 22, 2019. Given that the board had announced the timetable for the upcoming exams; it has rather remained mum on the Maharashtra Board SSC Result 2019 date. Last year the SSC Result was announced on June 8. If the previous year trend is to be considered, we could expect the Maharashtra Board SSC Result 2019 to be announced in the same timeline i.e. the first-second week of June 2019.

Maharashtra SSC Results 2019 Latest Update

6th June:  According to several news reports, the Maharashtra SSC Results will be released today @ 11:00 AM. But however, there is no official confirmation regarding Maharashtra SSC Results for class 10. Maharashtra SSC result, when announced, will be available on the board’s official results portal and we will also update it as soon as possible.

31st May: The Maharashtra Class 10 Results will be released on 6th June 2019.

 24th May: Maharashtra SSC Results to be released in the first week of June 2019.

Maharashtra SSC Result 2019

Apart from the timetable, the Maharashtra Board has not announced any official date for the declaration of the SSC Result 2019. If the past trends are to be followed then the board is expected to announce the results in the first week of June 2019.

Check your Maharashtra SSC Results For Class 10  from the following

• mahahsscboard.maharashtra.gov.in
• mahresult.nic.in
• results.gov.in

Every year, we here at JagranJosh ensure the students do not face any difficulty while checking the Maharashtra SSC Result 2019. Hence, we will provide the MSBSHSE SSC Result 2019 on this page after the formal declaration. The Maharashtra Board SSC Result 2019 will be also available on the official website of the board i.e. mahahsscboard.maharashtra.gov.in.

Every year over 17 lakh students appears for the Maharashtra SSC exam 2019. It is generally being seen that the students feel disappointed after the declaration of results, the main reason behind this emotional breakdown is their overestimation from the outcome. With tensions rising among the students, a simple way to calm the nerves would be to look at the result stats of last year. This data will help the students understand the strictness and evaluation standards followed by the examiners to check the answer sheets. It also helps students build right and realistic expectations with regards to Maharashtra Board SSC Result 2019.Previous Year Statistics of  Maharashtra SSC Result

Last year, over 17.66 lakh students had appeared for the SSC Exam. The pass percentage for Maharashtra SSC Exams was 89.41%.

In the table given below, we have provided the key statistics for last year’s SSC Result

How To Check Maharashtra SSC Result for Class10?

The Maharashtra Board will upload the SSC Result 219 on their official website soon after the formal declaration. But it is often seen that due to simultaneous access to the results, the official website faces technical glitches which leads to delays in checking the SSC Maharashtra Result 2019 online. In order to make the process smooth for the students, we have prepared a step-by-step guide provided below. The steps to view the Maharashtra Board SSC Result 2019 are simple and the students can view their respective result by providing the requisite information in the allocated fields i.e. roll number/hall ticket number, name, and date of birth.

• Visit the official website as mentioned above.
• Find the link / Provide roll number in the allocated field.
• Submit the information by clicking on the ‘ Submit’ button.
• Download and save your Maharashtra Board SSC Result 2019.

Details Mentioned on Maharashtra Board 10th Result

The following details will be mentioned on the Maharashtra Board Class 10 result 2019

• Name of the student
• Class
• Roll number
• Admit card number
• Enrolment number
• Date of examination
• Name of the school in which students is enrolled
• Marks obtained in each subject
• Practical marks
• Theory marks
• Maximum marks
• Grade (if applicable)
• Total marks obtained
• Marks percentage
• Result status
• Remarks
• Important instructions

SSC Result 2019 – Rechecking / Re-evaluation Process

After the results are declared, Maharashtra 10th Result 2019 will bring both good and bad news. While some may be celebrating the outcome of their hard work, there will be some disappointed with their performance. Such students should not lose hope and take it as an end to their future.  In case the students feel that their efforts have not been truly justified in the scorecard, they can apply for re-checking / re-evaluation of the answer sheets. In case there is any change in the final mark tally, the same would be updated in the original mark sheet.

Maharashtra Board 10th – Compartmental / Supplementary Exam

Then there may be cases where a student does not pass the board exams. In such cases, he will be provided with another opportunity to prove himself. The student will be able to appear for the Maharashtra SSC compartmental/ supplementary exam. The supplementary examination is likely to be held in the month of June. The same will be notified here in this article and also by the board on their official website. Students are advised to bookmark this page for any update on the SSC Result 2019; they can also fill in their details on the link shared in this article to receive notification in regards to the Maharashtra Board SSC Result 2019.

Important Points

• Maharashtra SSC result 2019 is likely to release in the month of June 2019.
• The Result will be made available on the official website of the Board.
• No hard copies of the result card will be sent to any student.
• Information related to re-evaluation, rechecking, supplementary, compartment examination (if permissible) will also be updated here.
• Students should regularly visit the Board’s portal for all the updates.

About Maharashtra State Board of Secondary & Higher Secondary Education

The Maharashtra State Board of Secondary & Higher Secondary Education, Pune has been in existence since the year 1965, was established under the Maharashtra Act No. 41 of 1965.  The jurisdiction of MSBSHSE extends over the nine divisional boards located at Pune, Mumbai, Aurangabad, Nasik, Kolhapur, Amravati, Latur, Nagpur and Ratnagiri.

Every year more than 30 lakh plus students participate in the bi-yearly examination conducted by The Maharashtra State Board of Secondary & Higher Secondary Education, Pune at HSC and SSC level. Around 21000 SSC level and 7000 plus Higher secondary level schools and institutions are affiliated with MSBSHSE. The board holds the power to regulate, supervise academic policies and prescribe syllabus in the affiliated schools.

We hope the detailed article on Maharashtra SSC Result 2019 is helpful. If you have any doubt regarding this article or Maharashtra SSC Result 2019, drop your comments in the comment section below and we will get back to you as soon as possible.

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JEE Advanced Result 2019: The answer sheets for JEE advanced 2019 have been released by IIT Roorkee. Students can through this answer sheets by logging in the candidate portal. Furthermore, IIT Roorkee has sent the individual answer links to candidates through SMS and email.

Direct Link to Check JEE Advanced Answer Key for Paper 1 and 2

The main answer sheet for JEE advanced will be released on June 4. The main exam was conducted in the computer base mode in two phases. One was from 9 am to 12 pm and 2 pm to 5 pm on 27th May. It was deemed mandatory by JEE that students should attempt both the papers 1 and 2. Also, the admit card for JEE advanced result was released on May 20. The registrations for JEE advanced was conducted online from May 3rd to 9th. Also, due to unforeseen events, students from Odisha were extra time till May 14 for their registration. While the results for JEE advanced will be released on June 14.

JEE Advanced 2019 – Answer Key

The answer key for all the correct answers asked in the exam will be available in the JEE advanced key. Candidates can access this answer key for JEE advanced only on June 4. Using this answer key, students will be able to calculate the scores even before the results are announced. This is possible by comparing the answer with the correct ones given in the answer key. Furthermore, students will be able to send their objections or feedback against any question or answer based on this key. After checking again, the final frozen answer key for JEE advanced 2019 will be released in the second week of June tentatively.

The results for the same will be declared by IIT Roorkee on June 14. For candidates, this result will be available only through online mode. In the result, individual scores of students along with total marks scored in the examination will be available.

Steps to Download the JEE Advanced Result 2019

Step 1: Candidates will have to go to the official website of JEE advanced for checking the result.

Step 2:  On this webpage, they are required to enter various details like date of birth, registration number, email address, and mobile number.

Step 3: Then after filling all the required details click on ‘Submit’.

Step 4: Thus, the result will be available on the screen. For further use, candidates can also download the result and take out the print.

Details Mentioned on JEE Advanced Result 2019

• Name of the Candidate
• Parent’s/Guardian’s Name
• Date of Birth
• Gender
• JEE Advanced 2019 Roll Number
• JEE Advanced 2019 Registration Number
• Photograph
• Signature
• Category
• Person with Disability
• Registered Email ID
• Mobile Number
• Nationality
• Candidate’s Status: Whether Documents are Valid
• JEE Advanced 2019 Qualifying Status: Qualified or Not
• Rank Obtained by the Candidate in Common Rank List
• Category Rank

JEE Advanced Rank List

Along with the results, candidates will also get their respective ranks in the exam. The rank list for JEE advanced will also be released along with the result. The rank list will be prepared for only those candidates who have appeared in both paper 1 as well as paper 2 of the JEE advanced 2019. For the preparation of the rank list, secured scores will be taken into account of the candidates. The rank list will also be prepared only for those candidates that have scored bare minimum marks or more than that. It should be noted by everyone that the minimum marks for each student vary based on the different categories.

JEE Advanced College And Rank Predictor

Before the results are out, candidates can check their scores based on the answer key released. Here candidates can check their probable ranks that they might score in the JEE advanced 2019. Once the scores are calculated using the answer key, candidates can use various tools available on Google for checking their ranks. They need to add suitable information like score, category, etc to check their rank.

Along with the rank, students can also check their list of probable colleges. There is a list of colleges that students can get admission into and these are probable colleges for that candidate where the chances are high. To use the college predictor, candidates need to fill the same information again. They will have to enter their preferred branches, ranks, category, and much more information. The list of probable colleges that student might get into will appear on the screen. This will also allow candidates to be prepared for the counseling process in which they are filling the course details.

JEE Advanced Cutoff

The JEE advanced cutoff determines the minimum marks that a candidate needs to get to secure their admission in the participating institutions. The cutoff ranks of the students will be determined and also released during the counseling process. Furthermore, qualifying marks for the examination will also be released by the concerning authority. All the students and candidates who are eligible and meet the qualifying criteria for cutoff marks will be listed out in the rank list. They will also be marked eligible for the seat allotment and counseling process. Thus, JEE advanced will also act as a screening process for the main admissions.

Counseling And Seat Allotment Process for JEE Advanced

The seat allotment process for JEE advanced will not be conducted by IIT Roorkee. Rather it will be conducted by JoSAA along with counseling. Thus, the conducting authority for the same is joint seat allocation authority. All the candidates that have qualified in JEE advanced, need to register through JoSAA and participate in this counseling process. The selection of preferred IITs along with the courses is already done. This allotment will be done through the ranking of the candidates along with their availability of seats and preference. The application form for JoSAA will be available in the second week of June tentatively.

Participating Institutions for JEE Advanced

There are a total of 23 Indian institutes of technology (IITs) that are participating in JEE advanced. The application to these institutions will be based on the secured scores of the candidates scored in the JEE advanced. They will use these scores to apply for the admissions in the IITs. There are around 11,000 seats that are offered by these 23 participating institutions. Furthermore, candidates can also apply separately to some lf of these institutions.

Facts About JEE advanced

The examination was conducted by joint entrance examination advanced this is also commonly known as JEE. The main conducting authority for this year’s exam was IIT Roorkee. Also, the examination was conducted at a national level and it was only for students at the undergraduate level.

The main purposes of these exams were to take admission into the IITs. Mainly, the mode of the examination was computer-based and there were two papers in the day. The exam was conducted for 3 hours and had topics from physics, chemistry, and maths. A total number of 2,45,000 applicants appeared for this year’s JEE advanced exam. After the exam, the selection will be based on JEE advanced ranks and then through JoSAA selection. For BTech programs in IITs, there are 11,279 seats available currently.

The post JEE Advanced Answer Key 2019 | Download JEE Advanced 2019 Answer Key For Paper 1 and 2 appeared first on Learn CBSE.

CBSE Class 10 Result 2019: The much awaited CBSE 10th result 2019 has been declared on the official website on 6th May 2019 at 2.15 PM. The officials of Central Board of Secondary Education released CBSE Class 10th Results on the official website of cbse.nic.in.

State Board Results

Students who have appeared for the CBSE Class 10 board exam can visit the official website of cbse.nic.in to check their Class 10 CBSE Results in 2019. In order to check their CBSE Class 10 Result 2019, candidates must have their registration number & D.O.B which is as mentioned in CBSE Class 10 hall ticket 2019. In this article, we will provide you with all the necessary information regarding CBSE Class 10 Result 2019. Read on to find out CBSE 10th Class Result 2019.

CBSE Class 10 Result 2019 Date and Time

Before getting into the details of CBSE Class 10 Result 2019, let’s have an overview of CBSE Class 10 Result date & time:

How To Check CBSE Class 10 Result 2019?

Follow the steps as listed below to check your CBSE Class 10 Results 2019:

• Step 1: Visit the official website: cbse.nic.in.
• Step 2: Now click on the link “Click for CBSE Results” as shown in the picture below
• Image may be NSFW.
  Clik here to view.
• Step 3: The page will be directed.
• Step 4: Now look into the “News & Events” box which is displayed on the right side of the screen.
• Step 5: Click on the link CBSE Class 10 Result.
• Step 6: Now enter your Registration Number & D.O.B.
• Image may be NSFW.
  Clik here to view.
• Step 7: Click on Submit.
• Step 8: The Results will be displayed on the screen.
• Step 9: Now download your CBSE Class 10 Results safely for future reference.

Details Mentioned On CBSE Class 10 Results 2019

The following details will be mentioned on CBSE 10th class result 2019:

1. Candidates Name
2. Candidates Roll No
3. Students Date of Birth
4. Candidates Parents Name
5. Gender
6. Candidates Photograph
7. Marks Obtained In Each Subject
8. Total Marks Obtained
9. Grade Obtained
10. Qualifying Status

Ways To Check CBSE Class 10 Results

Candidates can CBSE Class 10 Results through the following ways:

If a candidate is not satisfied with their class 10 results then they have the provision to apply for re-evaluation of their answer sheets. Students who need to verify their marks can do so by making a payment of Rs 500 per subject. The links for CBSE Class 10 Result will be activated day after the declaration of the result on the official website, cbse.nic.in. Candidates can also obtain a photocopy of their board exam answer booklet by  Rs 550 for class 10 exams, per subject. For re-evaluation purposes, the link will only be activated for one day. Students will have to pay Rs 100 per question for the re-evaluation process.

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Highlights of CBSE Class 10 Grade Verification

• Candidates must pay Fee of Rs.500/- per subject through payment gateway (Credit/Debit card) or through e-challan.
•  Candidates cannot process the fee payment through offline mode.

•  If the candidate is paying through offline mode then they have a facility to pay through DD.
• Only those candidates who have applied for the verification of grades will be able to get their photocopy of evaluated answer books.
• The CBSE Class 10 grade verification application will be accepted only online through the official website of CBSE: cbse.nic.in
• If candidates come across any mistakes in their answer book then they must write a formal letter will also be sent by speed post.
• If any of the answers are not evaluated, then candidates must report to their respective Regional Offices of CBSE not later than seven days of receipt with the photocopy of the answer book.

CBSE Class 10 Result – Grading System

The CBSE Class 10 grading system is tabulated below:

CBSE Class 10 Result – How to calculate your CGPA?

For example, if your grade points for the five main subjects are:

• Subject 1: 8;
• Subject 2: 9;
• Subject 3: 7;
• Subject 4: 9;
• Subject 5: 9;

Now, Add the grade points: 8+9+7+9+9 = 42 and Divide it by 5

i.e., 42/5 = 8.4

So, your CGPA is 8.4.

CBSE Class 10 Result – Previous Years Statistics

The CBSE Class 10 Result Previous years analysis are given below.

Now that you are provided all the necessary information regarding CBSE Class 10 Result 2019. If you have any query regarding CBSE 10th Class Results 2019, leave your comments in the comment section below and we will get back to you as soon as possible.

The post CBSE Class 10 Result 2019 (Released) | Check CBSE Class 10 Result @ cbseresults.nic.in appeared first on Learn CBSE.

Motion and Time Class 7 Extra Questions Science Chapter 13

Motion and Time Class 7 Science Extra Questions Very Short Answer Type Questions

Question 1.
Give the basic unit of speed.
Answer:
Metre/second is the basic unit of speed.

Question 2.
Mention which is the most common thing in almost all the clocks.
Answer:
The most common thing in almost all the clocks is that all of them shows periodic motion.

Question 3.
Paheli and Boojho have to cover different distances to reach their school but they take the same time to reach the school. What can you say about their speed? [NCERT Exemplar; HOTS]
Answer:
They do not have equal speed because they cover unequal distance in equal intervals of time. One of them has higher speed whom has to cover larger distance with respect to other.

Question 4.
If Boojho covers a certain distance in one hour and Paheli covers the same distance in two hours, who travels with a higher speed? [NCERT Exemplar; HOTS]
Answer:
Boojho travels with a higher speed as he has covered same distance in lesser time with respect to Paheli.

Question 5.
A simple pendulum is oscillating between two points A and B as shown in figure. Is the motion of the bob uniform or non-uniform?
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Answer:
The motion of bob is non-uniform as it does not cover equal distance in equal intervals of time.

Question 6.
State the characteristic of distance-time graph for the motion of an object moving with a constant speed.
Answer:
The distance-time graph for the motion of an object moving with a constant speed is a straight line inclined on x-axis at some angles.

Question 7.
Name the axis that represents dependent variable.
Answer:
y-axis represents the dependent variable.

Question 8.
Briefly explain how will decide which object is moving fast and which one is moving slow.
Answer:
If an object covers more distance in equal intervals of time with respect to other, then we can say that object is moving faster with respect to the other object.

Question 9.
If you did not have a clock, how would you decide what time of the day is? [HOTS]
Answer:
We can decide time of the day without clock by seeing shadow formed by the sun, e.g. at noon, shadow formed by the sun is shorter than at evening.

Question 10.
State how do we measure time interval of a month.
Answer:
Time interval of a month is measured by one new moon to the next.

Question 11.
Determine the number of seconds there in a day.
Answer:
In a day, we have 24 h
We know that 1 h = 3600 s
So, 24 h = 3600 × 24 = 86400s

Question 12.
Estimate that how many hours are there in a year.
Answer:
In a year, we have 365 days and 1 day = 24 h
So, for 365 days, we have 24 × 365 h = 8760 h

Question 13.
Explain how time was measured when pendulum clocks were not available.
Answer:
Before the discovery of pendulum clocks, sundials, water clocks and sand clocks were used.

Question 14.
A spaceship travels 36000 km in one hour.Express its speed in km/s.
Answer:
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Question 15.
Out of the two given clocks, a pendulum clock or a quartz clock. Mention which of the clock between the given ones requires an electric cell for its working?
Answer:
A quartz clock requires an electric cell for its working.

Question 16.
Name the most ancient unit of time in which it was earlier measured.
Answer:
Solar day is the most ancient unit of time in which it was earlier measured.

Question 17.
State the condition under which the distance-time graph of an object is a horizontal line parallel to the axis of time.
Answer:
When the object is at rest, then the distance-time graph of an object is a horizontal line parallel to the axis of time.

Question 18.
State the factors on which the time period of a simple pendulum depend.
Answer:
The factors on which the time period of a simple pendulum depend are

• Length of the pendulum
• Acceleration due to gravity.

Question 19.
Name the different types of graphs.
Answer:
Different types of graphs are

• Line graph
• Pie chart
• Bar graph

Question 20.
State the way through which we can prepare a pendulum by our own.
Answer:
By suspending a metal ball with the help of a cotton thread and the other end of the thread can be tied to some different supports, so in this way, we can prepare a pendulum by our own.

Motion and Time Class 7 Science Extra Questions Short Answer Type Questions

Question 1.
Last Sunday, Priyanka decided to go outside with her family for the dinner in some particular restaurant.
Then, she thought to go through her own car. So, while moving she increased the speed of the car from 36 km/h to 54 km/h. All of sudden, a rickshaw came in front of her car but due to applying of brakes at the right time, both of them got safe from meeting with an accident. [Value Based Question]
(a) Calculate the increase in the speed of the car in the terms of m/s.
(b) Mention a positive action performed by Priyanka here.
Answer:
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∴ Increase in speed = Final speed – Initial speed =(15-10) m/s = 5 m/s
(b) Priyanka applied the brakes at a right time while driving the car and prevented her family and the person on rickshaw from meeting with an accident.

Question 2.
Differentiate between a uniform and non-uniform motion.
Answer:
When a body travels equal distance in an equal interval of time, then the body is said to be in a uniform motion.
When a body travels unequal distance in an equal interval of time, then the body is said to be in non-uniform motion.

Question 3.
Briefly mention how many types of motion are there. Also, name all of them.
Answer:
Different types of motion are there and they can be named as follows

• Periodic motion
• Rolling motion
• Rotatory motion
• Oscillatory and vibratory motions
• Translatory motion

Question 4.
The average age of children of class VII is 12 years and 3 months. Express this age in second. [NCERT Exemplar]
Answer:
Given, the average age of children 12 years and 3 months
1 year = 365 days = 365 × 24 h [1 day = 24 h]
= 365 × 24 × 3600 s [1 h = 3600 s]
12 years = 31536000 s × 12 = 378432000 s
3 months = 30x3days = 30 × 3 × 24h = 30 × 3 × 24 × 3600s = 7776000s
So, total age in second = 378432000 + 7776000 = 386208000s

Question 5.
Plot a distance-time graph of the tip of the second hand of a clock by selecting 4 points on X-axis and /-axis, respectively. The circumference of the circle traced by the second hand is 64 cm. [NCERT Exemplar]
Answer:

As, here equal distance is covered in equal intervals of time.
So, graph will be straight line.
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Question 6.
With the help of the data given in the following table, show graphically the relationship between the diameter and circumference of a circle.

Answer:
With the help of a given data in a tabular form, the graph can be obtained by taking diameter of the circle on the x-axis and the circumference on y-axis. On x-axis, 1 cm diameter is shown by 1 cm and on the y-axis, 3 cm of circumference is shown by 1 cm.
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Question 7.
Starting from A, Paheli moves along a rectangular path ABCD as shown in figure. She takes 2 min to travel each side. Plot a distance-time graph and explain whether the motion is uniform or non-uniform.
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Answer:
Since, the distance covered per unit time for the entire distance covered is not the same, the motion is a non-uniform motion.
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Question 8.
One day, a five years old boy, Chintoo was playing with his toys in his room. After few minutes, he saw a wristwatch on his study table, so after seeing it, he got crazy and so much in eager to play with that watch. Then, for 2 to 3 min, he was trying to analyse it that whether its a toy or something else, then suddenly, he was just about to throw it but at the same his mother entered into the room and take the watch back immediately from his hand.
(a) State the benefit of a wristwatch.
(b) Briefly mention the values showed by Chintoo’s mother here. [Value Based Question]
Answer:
(a) The wristwatch can be handled very easily to check the time in comparison to the wall clock.
(b) The values showed by Chintoo’s mother here is the concern towards her four years old child and also the concern towards that wristwatch while considering the importance of money.

Question 9.
The following distance-time graph of three objects (D, E and F) are given (see figure given alongside). What can you say about the motion of the objects?
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Answer:
Since, the distance-time graph of an object D is a straight line therefore, its motion is uniform. Also here, we can see that the distance-time graph of object E is parallel to x-axis (time-axis), therefore object E is at rest.
As, the distance-time graph of object F is a curved line, therefore the object C is moving with a non-uniform speed and its motion is non-uniform.

Question 10.
The following figure shows the distance-time graph for the motion of two objects D and E. Which one of them is moving slower?
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Answer:
After studying the figure given alongside, D or E is moving slower as the slope of distance-time graph of E is less than that of graph D.

Question 11.
The following figure shows the distance-time graph for the motion of two vehicles (C and D). At what time and distance (from the starting point), they will cross each other.
Answer:
Firstly, draw perpendicular lines from point E on x-axis and y-axis.
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The two vehicles (C and D) will meet (or cross) each other at 5:00 PM and after travelling a distance of 4 km.

Motion and Time Class 7 Science Extra Questions Long Answer Type Questions

Question 1.
Given below as a figure is the distance-time graph of the motion of
(a) What will be the position of the object at 20 s?
(b) What will be the distance travelled by the object in 12 s?
(c) What is the average speed ofthe object? [NCERT Exemplar]
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Answer:
(a) From the graph, it is clear that the distance at 20 s is 8 m.
(b) Distance travelled by the body object in 12 s is 6 m.
(c) As, average speed = Image may be NSFW.
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Question 2.
Boojho goes to the football ground to play football. The distance-time graph of his journey from his home to the ground is given as figure. [NCERT Exemplar]
(a) What does the graph between points B and C indicate about the motion of Boojho?
(b) Is the motion between 0 to 4 min uniform or non-uniform?
(c) What is his speed between 8 to 12 min of his journey?
Answer:
(a) Since, the graph between B and C is parallel to time-axis, so it indicates that Boojho is at rest.
(b) Since, the graph is not straight line, so it is a non-uniform motion.
(c) As, speed = Image may be NSFW.
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Question 3.
Explain by giving example that how can we choose a suitable scale.
Answer:
While choosing the most suitable scale for drawing a graph, we should keep the following points in mind
(i) The difference between the highest and lowest values of each quantity.
(ii) The intermediate values of each quantity so that with the scale chosen, it is easy to mark the values on the graph.
(iii) To utilise the maximum part of the paper on which the graph is to be drawn, assume that we have a graph paper of size 25 cm x 25 cm and we have to accommodate following data:

Since, one of the scales will be
Distance 5 km = 1 cm and Time 6 min = 1 cm
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Question 4.
Distance between Bholu’s and Golu’s house is 9 km. Bholu has to attend Golu’s birthday party at 7 O’ clock. He started his journey from his home at 6 O’ clock on his bicycle and covered a distance of 6 km in 40 min. At that point, he met Chintu and he spoke to him for 5 min and reached Golu’s birthday party at 7 O’ clock. With what speed, did he cover the second part of the journey? Calculate-his average speed for the entire journey. [NCERT Exemplar]
Answer:
From the question, Bholu covers 3 km distance in 15 min.
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Question 5.
The given data regarding the motion of two different objects C and D is in a tabular form. Check them carefully and state whether the motion of the objects is uniform or non-uniform.

Answer:
We can check the motion of the objects C and D by plotting the distance-time graph for the two objects.
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Graph the object C on x-axis
Scale 1 cm = 15 min and on y-axis 1 cm = 10 m
Since, the distance-time graph of the object C is a straight line. Therefore, its motion is uniform.
Graph of object D
Scale On x-axis, 1 cm = 15 min, On y-axis 1 cm=5m
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Since, the distance-time graph of the object D is not a straight line, therefore, its motion is non-uniform.

Motion and Time Class 7 Science Extra Questions Miscellaneous Questions

Multiple Choice Questions
Question 1.
What is the relation between distance and speed?
(a) Distance = Speed × Time
(b) Distance = Speed/Time
(c) Distance = Time/Speed
(d) None of the above
Answer:
(a) Distance = Speed × Time

Question 2.
Two students were asked to plot a distance-time graph for the motion described by Table A and Table B. [NCERT Exemplar]

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The graph given in figure is true for
(a) Both A and B
(b) Only A
(c) Only B
(d) Neither A nor B
Answer:
(a) Since, speed is constant for A and S, so graph for A and 6 will be a straight line.

Question 3.
How will you convert the speed given in km/h to m/s?
(a) By multiplying with 5/16
(b) By multiplying with 6/5
(c) By multiplying with 18/5
(d) By multiplying with 5/18
Answer:
(d) Conversion of km/h into m/s
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Question 4.
On which axis is dependent variable represented?
(a) x-axis
(b) y-axis
(c) On any axis
(d) Depends on the data
Answer:
(b) y-axis

Question 5.
If we denote speed by S, distance by D and time by T, the relationship between these Quantities is [NCERT Exemplar]
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Answer:
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Question 6.
Which one records the distance travelled by a vehicle?
(a) Speedometer
(b) Manometer
(c) Motometer
(d) Odometer
Answer:
(d) Odometer

Question 7.
The correct symbol to represent the speed of an object is
(a) 5 m/s
(b) 5 mp
(c) 5 m/s^-1
(d) 5 s/m
Answer:
(a) 5 m/s

Question 8.
The distance-time graph for the motion of an object moving with a constant speed is
(a) a curved line leaving towards x-axis
(b) a curved line inclined towards y-axis
(c) a straight line inclined at some angles towards x-axis
(d) None of the above
Answer:
(c) a straight line inclined at some angles towards x-axis

Question 9.
Figure shows an oscillating pendulum.
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Time taken by the bob to move from A to C is t₁ and from C to O is t₂. The time period of this simple pendulum is [NCERT Exemplar]
(a) (t₁ + t₂)
(b) 2(t₁ + t₂)
(c) 3 (t₁ + t₂)
(d) 4(t₁ + t₂)
Answer:
(d)As from A to O, Image may be NSFW.
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Question 10.
The distance-time graph for a vehicle standing on a road side will be
(a) straight line inclined by some angle to x-axis
(b) straight line parallel to x-axis
(c) straight line parallel to y-axis
(d) None of the above
Answer:
(b) straight line parallel to x-axis

Question 11.
Boojho walks to his school which is at a distance of 3 km from his home in 30 min. On reaching, he finds that the school is closed and comes back by a bicycle with his friend and reaches home in 20 min. His average speed in km/h is [NCERT Exemplar]
(a) 8.3
(b) 7.2
(c) 5
(d) 3.6
Answer:
(b) Given, total distance = 3+ 3 = 6km, total time = 30 + 20 = 50 min
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