1.

(a) What are normal goods ? Give two examples.(b) State any two features of the Consumer Protection Act.(c) A businessman stocks potatoes in the cold storage during the winter and releases that stock during summer. Will this be considered as production ? Give a reason for your answer. (d) Mention two ways by which a worker benefits from division of labour. (e) Give two assumptions of the law of supply.

Answer»

(a) Normal goods are those goods, the demand for which increases with the increase in income of the consumers. For example, a consumer increases his demand for milk, clothes, furniture, refrigerators and TV sets as his income increases. A consumer purchases 2 litres of milk daily when his monthly income is ? 10,000 and purchases 3 litres of milk when his income rises to ? 12,000 per month. 

(b) (i) The Consumer Protection Act provides for six rights of consumers. 

(ii) The Consumer Protection Councils set up under the Act are intended to promote and protect the various rights of consumers. 

(c) Yes, the product was produced in the same financial year. 

(d) (i) Right Man at the Right Job : Since work is divided into a number of parts or sub-parts, each worker can be given a job according to his taste and preference. 

(ii) Increase in Efficiency of Labour : When a worker does the same work again and again, he gets specialisation in it. In this way, the division of labour leads to a great increase in . efficiency and hence production, 

(e) (i) Price of related goods should not change.

(ii) Cost of factors of production should remain the same.



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