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951.

Find the number of faraday used for electrolysis of one mole Al2O3.

Answer»

Al2O → 2Al3+ + 3O2-

2Al3+ + 6e → 2Al

So 6F is required for I mole of Al2O3.

952.

Define the following terms:Molar conductivityCorrosion

Answer»

1. Molar conductivity (Δm): Molar conductivity of a solution at a given concentration is the conductance of the volume V of solution containing one mole of electrolyte kept between two electrodes with area of cross section A and distance of unit length i.e.

Δm = \(k\frac { A }{ l } \) (where l = 1 and A = V volume containing 1 mole of electrolyte)

2. Corrosion: It is tarnishing or eating away of any active metal under environmental factors. Usually metal oxides, hydroxides and carbonates are formed due to corrosion.

953.

The resistance of a conductivity cell containing 0.001 M KCl solution at 298 K is 1500 Ω. What is the cell constant if conductivity of 0.001 M KCl solution at 298 K is 0.146 × 10-3 S cm-1?

Answer»

Concentration = 0.01 Ω R = 1500 Ω
G* (cell constant) = ?
K (conductivity) = 0.416 × 10-3 S cm-1
Since, k = \(\frac { Cellconstant }{ R } \)
Cell constant = k × R
= 0.146 × 10-3 × 1500 = 0.219 cm-1

954.

How would you account for the following?(i) Frenkel defects are not found in alkali metal halides.(ii) Schottky defects lower the density of related solids.(iii) Impurity doped silicon is a semiconductor.

Answer»

(i) This is because alkali metal ions have larger size which cannot fit into interstitial sites.
(ii) As the number of ions decreases as a result of Schottky defect, the mass decreases whereas the volume remains the same.
(iii) This is due to additional electron or creation of hole on dopping with impurity. Creation of hole causes p-type semiconductor and creation of electron causes n-type semiconductor.

955.

Elaborate on the theme of ‘Broken Images’, that it is a study of the exploration of the crisis of identity. 

Answer»

Search for identity in technology driven society – hollowness of media – conflict between outer mask and inner truth that emerges in the tussle between two sisters – Manjula’s final emotional collapse

956.

Write equations for the following statements:(i) The sum of numbers x and 4 is 9.(ii) 2 subtracted from y is 8.(iii) Ten times a is 70.(iv) The number b divided by 5 gives 6.(v) Three-fourth of t is 15.(vi) Seven times m plus 7 gets you 77.(vii) One-fourth of a number x minus 4 gives 4.(viii) If you take away 6 from 6 times y, you get 60.(ix) If you add 3 to one-third of z, you get 30.

Answer» (i) x + 4 = 9

(ii) y - 2 = 8

(iii) 10a = 70

(iv) b/5 =  6

(v) 3 t /4 = 15

(vi) 7 m + 7 = 77  

(vii) x/4 = 4

(viii) 6 y - 6 = 60  

(ix) z/3 =  30
957.

Use the bar graph to answer the following questions:(a) Which is the most popular pet?(b) How many students have dog as a pet?

Answer»

(a) Cat is the most popular pet.

(b) 8 students have dog as a pet.

958.

Give three applications of chemical effect of current.

Answer»

(a) Electroplating.

(b) Refining of impure metals.

(c) Refining of metal are for obtaining pure metal.

959.

How will you distinguish, without touching, between a plane mirror, a convex mirror and a concave mirror?

Answer»

If the image is upright of the same size as the object and it does not change in size by moving the object the mirror is plane.

If the image is upright magnified and it becomes inverted on moving the object away from the mirror then the mirror is concave. 

If the image is upright and diminished and it remains upright on moving  the object away from the mirror then the mirror is convex.

960.

Name the unlablelled areas ‘a’ and ‘b’ of the pie chart (given above) representing the global biodiversity of invertebrates showing their proportionate number of species of major taxa.

Answer»

(a) Insects 

(b) Molluscs

961.

Mention the type of evolution that has brought the similarity as seen in potato tuber and sweet potato.

Answer»

Convergent evolution.

962.

In a flowering plant, summarize the events that take place after fertilization.

Answer»

(Fertilization results in formation of zygote). 

Zygote divides several times, to form an embryo. The ovule develops a thick coat and is into seed. The ovary grows rapidly and ripens to form the fruit.

963.

Name a common nutrient that is absorbed in the small intestine and reabsorbed by the kidney tubules.

Answer»

Glucose/Amino acids

964.

The presence of a particular group of bacteria in water bodies indicates contamination. Identify the group.

Answer»

Coliform bacteria

965.

Complete the news reports accompanying the following headlines! (a) TWO KILLED IN BLUE LINE ACCIDENTS  ............. buses here on Monday, one was an 18 years old girl and the other was a cyclist. (b) ASSAM SEEKS CBI PROBE The Assam government today ........... into the violence during the anti reservation rally last week. (c) TWO DIE OF BURNS Two senior executives of Baranagar Jute Factory ........... in the factory premises. (d) SINGAPOREAN TRADE TEAM TO VISIT INDIA. According to Singapore Chamber of Commerce, a high level trade team ................. India soon to finalize the setting up of trade development council in New Delhi.

Answer»

(a) Two persons were killed by the Blue line 

(b) sought a CBI probe 

(c) were burnt to death/died of burns 

(d) will be visiting/is going to visit

966.

Complete the following news reports accompanying the headlines : (a) BOMB HOAX DELAYS AI FLIGHT An Air India flight to London ......... for about 5 hours after a call received from an unknown caller. (b) C.B.S.E. EXAM RESULT TOMORROW  Result of the CBSE Senior School Certificate Examination 2011 ............. on May 28. (c) DIRECTOR INAUGURATES BANK EXTENSION COUNTER The Managing Director of the Punjab National Bank ........... at the Heart and Lung Institute in Chandigarh yesterday. (d) ABDUCTED BENGAL COP RELEASED BY MAOISTS. Two days after being taken hostage, police officer A. Dutt ..................... unharmed by the Maoists in Lalgarh.

Answer»

(a) was delayed 

(b) will be declared 

(c) inaugurated the extension counter 

(d) has been released

967.

If the LCM of (a, b) = 26460, HCF of (a, b) = 27 and b = 540, find a.

Answer» a × b = LCM × HCF
⇒ a × 540 = 26460 × 27
⇒ a = 26460 x 27/540=1323
968.

How has globalisation affected the life of Indians ? Explain with examples.

Answer»

IMPACT OF GLOBALISATION IN INDIA

Globalisation and greater competition among producers- both local and foreign producers- has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. These people today, enjoy much higher standards of living than was possible earlier. Among producers and workers, the impact of globalisation has not been uniform

(i)  Increased investments  MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. New jobs have been created. Local companies supplying raw materials, etc. to these industries have prospered.

(ii)  Increased competition.

Several of the top Indian companies have been able to benefit from the increased competition. They have increased competition. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.

(iii)  Translations in to MNCs

Globalisation has enabled some larger Indian companies to emerge as multinational themselves. 

(iv)  New opportunities

Globalisation has also created new opportunities for companies providing services, particularly those involving IT

969.

What is the impact of liberalisation on Television as a form of mass media.

Answer»

The impact of liberalisation on Television as a form of mass media :

  • Privately run satellite channels have multiplied rapidly since the mid-1990s. 
  • The growth of private satellite television has been one of the defining developments of contemporary India. 
  • The Gulf War of 1991 and the launching of Star-TV in the same year by the Whampoa Hutchinson Group of Hong Kong, signalled the arrival of private satellite Channels in India. 
  • By 2000, private cable and satellite channels were available including several that focused exclusively on regional-language broadcasting like Sun-TV, EenaduTV, etc. 
  • The VCR greatly multiplied entertainment options for Indian audiences, providing alternatives to Doordarshan’s single channel programming. Video viewing at home and in community-based parlours increased rapidly. 
  • Transnational television channels have through research realised that the use of the familiar is more effective in procuring the diverse groups that constitute Indian audience. 
  • Most television channels are on throughout the day, 24X7. News has been made far more immediate, democratic and intimate. 
  • There are a growing number of news channels in Hindi and English, a large number of regional channels and an equally large number of reality shows, talk shows, Bollywood shows, family soaps, interactive shows, game shows and comedy shows.
970.

Identify and describe the political changes and developments that accompanied globalisation.

Answer»

The political changes and developments that accompanied globalisation were-

The collapse of the erstwhile socialist world hastened globalisation. 

1. This also gave a specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures

  • These policies reflect a political vision of free enterprise which believes that a free reign to market forces will be both efficient and fair. It is, therefore, critical of both state regulation and state subsidies. 
  • The existing process of globalisation in this sense does have a political vision as much as an economic vision. Thus, we have the concept of inclusive globalisation i.e. one, which includes all sections of society. 

2. Another significant political development which is accompanying globalisation is the growth of international and regional mechanisms for political collaboration. The European Union (EU), the Association of South East Asian Nations (ASEAN), South Asian Regional Conference (SARC), and more recently South Asian Federation of Trade Association (SAFTA) are just some of the examples that indicate the greater role of regional associations. 

3. The other political dimension has been the rise of the International Governmental Organisations (IGOs) and International Non-Governmental Organisations (INGOs). An intergovernmental organisation is a body that is established by participating governments and given responsibility for regulating, or overseeing a particular domain of activity that is transnational in scope. The World Trade Organisation (WTO) for instance increasingly has a major say in the rules that govern trade practices. INGOs differ from intergovernmental organisations in that they are not affiliated with government institutions. Rather they are independent organisations, which known INGOs are Greenpeace, the Red Cross and Amnesty International, Medecins Sans Frontieres. 

971.

Define and describe the difference between fordism and post-fordism.

Answer»

Fordism refers to a system of production made popular by Henry Ford. He popularized the assembly line method of mass production of a standardized product. This era led to payment of better wages to the workers and social welfare policies being implemented by both industrialists and the state. 

Post-fordism refers to the method of flexible production adopted by multinational companies who either off-shore their production units or outsource the whole process of production and distribution to third world countries because of the availability of cheap labour. This period also marks the growth of the culture and leisure industry evident in the appearance in cities of shopping malls, multiplex cinema halls, etc. 

For example, Nike grew enormously from its inception in the 1960s as an importer of shoes. The founder Phil Knight imported shoes from Japan and sold them at athletic meetings. The company grew to a multinational enterprise, a transnational corporation. Its headquarters are in Beverton, just outside Portland, Oregon. Only two US factories ever made shoes for Nike. In the 19 60s they were made in Japan. As costs increased production shifted to South Korea in mid-1970s. Labour costs grew in South Korea, so in the 1980s production widened to Thailand and Indonesia.

972.

In what ways has globalisation affected Print Media.

Answer»

The globalisation affected Print Media :

  • In India we have seen the circulation of newspapers grow. 
  • New technologies have helped boost the production and circulation of newspapers. 
  • A large number of glossy magazines have also made their entry into the market. 
  • There is a rise in the number of literate people who are migrating to cities. 
  • The needs of the readers in the small towns and villages are different from that of the cities and the Indian language newspapers cater to those needs. Dominant Indian language newspapers such as MalayalaManorama and the Eenadu launched the concept of local news in a significant manner by introducing district and whenever necessary, block editions using simplified and colloquial language. 
  • The Indian language newspapers have adopted advanced printing technologies and also attempted supplements, pullouts, and literary and niche booklets. 
  • Marketing strategies like consumer contact programmes, door-to-door surveys, and research have marked the growth of circulation.
973.

Infer the reasons for the emergence of Post-Fordism and the new international division of labour with suitable example.

Answer»

The emergence of Post-Fordism and the new international division of labour :

  • A new international division of labour has emerged in which more and more routine manufacturing production and employment is done in the Third World cities. 
  • Nike grew as an importer of shoes. 
  • The company grew to a multinational enterprise, a transnational corporation. 
  • As costs increased production shifted to South Korea in mid-1970s. Labour costs grew in South Korea, so in the 1980s production widened to Thailand and Indonesia. In the 1990s we in India produce Nike. 
  • However, if labour is cheaper elsewhere production centers will move somewhere else.  
  • This entire process makes the labouring population very vulnerable and insecure. 
  • This flexibility of labour often works in favour of the producers. 
  • Instead of mass production of goods at a centralised location (Fordism), we have moved to a system of flexible production at dispersed locations (post-Fordism).
974.

“The more mechanised an industry gets, the fewer people are employed.” Justify the statement with suitable examples. 

Answer»

“The more mechanised an industry gets, the fewer people are employed.” 

  • The more mechanized an industry gets, the fewer people are employed however they too have to work at the pace of the machine. 
  • For example, In Maruti Udyog Ltd. two cars roll off the assembly line every minute. 
  • Workers get only 45 minutes rest in the entire day. Two tea breaks of 7.5 minutes each and one lunch break of half an hour. 
  • Most of them are exhausted by the age of 40 and take voluntary retirement. 
  • While production has gone up, the number of permanent jobs in the factory has gone down. 
  • The firm has outsourced all services like cleaning, and security, as well as the manufacture of parts. Outsourcing and just-in-time keeps costs low for the company, but the workers are very tense, because if the supplies fail to arrive, their production targets get delayed, and when they do arrive they have to run to 4 keep up. Thus, they get exhausted and they leave their jobs. 
975.

What examples can you find to show that Green Revolution strategies created regional inequalities? 

Answer»

The Green Revolution strategies created regional inequalities :

  1. The areas that underwent this technological transformation became more developed while other areas stagnated. 
  2. For instance, the Green Revolution was promoted more in the western and southern parts of the country, and in Punjab, Haryana, and western U.P., than in the eastern parts of the country. 
  3. As a result, states such as Bihar and in eastern U.P., and dry regions such as Telengana, were relatively undeveloped. 
  4. The sharp caste and class inequalities, together with exploitative labour relations, in these regions has given rise to various kinds of violence (including inter-caste violence) in recent years.
976.

Consider the following CSS code: h1 {font-family: arial, comic sans-serif, “Times New Roman”;} Explain font-family.

Answer»

The property font-family is used to apply prioritized list of fonts in a web page. If the first font of the list is not installed on the computer then the next font of the list will be displayed until a suitable font is found. 

977.

Write the CSS code to: (i)  Apply 50px indentation to all text paragraphs marked with <p>.(ii)  Make the text in the paragraphs marked with  <p> tag “italics”.

Answer»

P{

text-indent: 50px;

font-style: italic;

}

978.

Find and write the output of the following python code: def fun(s):k = len(s)m=" "for i in range(0,k):if(s[i].isupper()):m = m + s[i].lower()elif s[i].isalpha():m = m + s[i].upper()else: m = m + 'bb'print(m)fun('[email protected]')

Answer»

SCHOOLbbbbCOM

979.

Rewrite the following code in python after removing all syntax error(s). Underline each correction done in the code.30 = Tofor K in range(0,To)IF k%4==0:print (K*4)Else: print (K + 3)

Answer»

To = 30 for K in range(0,To) :

if k%4==0:

print (K*4)

else:

print (K+3) 

980.

Write the type of tokens from the following:(i)  if (ii)  roll_no

Answer»

(i)  Key word

(ii)  Identifier

981.

Name the Python Library modules which need to be imported to invoke the following functions:(i)  sin( ) (ii)  randint ( )

Answer»

(i)  math

(ii)  random

982.

Explain the overdraft facility given by banks.

Answer»

By this method of advancing loans, banker allows his reliable customers to draw over and above the money actually deposited by them in their accounts. This facility is allowed through cheque only to the current account holders, but only to those who have good financial and credit standing.

983.

Define total utility. How is marginal utility derived from total utility?

Answer»

Total Utility is the sum total of utility derived from the consumption of all the units of a commodity.

TU =  MU1+ MU2+ MU3 = + .......... +………………+ 123 MUn 

or TU MU n n = ∑MUn

Marginal Utility is derived from Total Utility as :

 MU = TUn - TU(n-1) or MU = ΔTU/ΔQ

984.

What is meant by price discrimination in monopoly market?

Answer»

Price discrimination refers to the charging of different prices by the monopolist for the same product. The difference in the product may be on the basis of brand, wrapper etc. This policy of the monopolist is called price discrimination. (should be explained according to monopoly market).

985.

Elaborate the price discrimination feature of monopoly. 

Answer»

Price Discrimination – is a situation where the monopolist charges different set of prices of the commodity from different set of consumers. Monopolist being the only seller in the market can exercise this feature by charging different prices (for the products which are homogeneous or otherwise) from different consumers. For example the electricity distribution companies might charge different prices from domestic and commercial electricity users. 

986.

Why number of firms is limited in an oligopoly market? Explain. 

Answer»

In an oligopoly market, certain ‘barriers to entry’ prevent new firms to enter the industry. Such barriers maybe: 

i. Requirement of large capital 

ii. Patents and copyrights 

iii. Government Licences

iv. Control over important raw material

These barriers may prevent a new firm to enter the oligopolistic market. Firms which are able to cross these barriers are able to enter the industry.  

987.

Define market supply. Explain the factor 'input prices 'that can cause a change in supply.

Answer»

Market Supply refers to the graphical presentation of aggregate quantities supplied by all the firms or producers (plotted on the x-axis) and different prices (plotted on the y-axis) at which the quantities are offered for sale. In other, words, it is the horizontal summation of the individual supply curves of all the firms in a market. 

The input prices is a major factor which affects the supply. If the price of inputs increases, then the cost of production also increases, other things remaining the same. Due to the rise in the cost of production, it becomes relatively lesser profitable for a producer to produce, consequently, lesser quantity is supplied at the given price. On the other hand, if the input prices falls, then the cost of production also falls, thereby, the producer supplies more quantities of output at the given price. Thus, change in the input prices negatively affects the supply of a product.

988.

Explain with the help of a numerical example, the meaning of diminishing marginal rate of substitution

Answer»

Diminishing marginal rate of substitution implies rate at which a consumer is willing to substitute one goods for each additional unit of the other goods tends to decline when the consumer consumes more of that goods. For example, suppose we have the consumption bundles of a consumer as given in the following schedule :

Units of Goods 1Units of Goods 2
110
26
33
41


We also know that MRS is calculated as :

Change in consumption of Goods 2 / Change in consumPtion of Goods 1=∆y/∆x

Now, in the given schedule,

To increase the consumption of Goods 1 by 1 unit, the consumer has to sacrifice 4 units (10 - 6) of Goods 2.

So the Marginal Rate of Substitution when the consumer increases the consumption of Goods 1 from 1 to2 units is, 10-6/2-1=4/1=4

Now, similarly, when the consumer increases the consumption of Goods 1 by one more unit, the consumer has to sacrifice 3 units (6 - 3) of Goods 2.

So, the Marginal Rate of Substitution when the consumer increases the consumption of Goods 1 from 2 to 3 units is, 6-3/3-2=3/1=3

 After this, when consumer increases the consumption of Goods 1 by one more unit, the consumer has to sacrifice 2 units (3 - 1) of Goods 2.

Thus, the Marginal Rate of Substitution when the consumer increases the consumption of Goods  1 from 3 to 4 units is, 3-1/4-3=2/1=2

Hence, we can see that the Marginal Rate of Substitution (MRS) is declining as and when the consumer consumes an additional unit of Goods 1 and we can say that MRS is diminishing in nature.

989.

Calculate (a) national income, (b) net national disposable income :Rs.in crores(i)Net factor income to abroad(-) 50(ii)Net indirect taxes800(iii)Net current transfers from rest of the world100(iv)Net imports200(v)Private final consumption expenditure5,000(vi)Government final consumption expenditure3,000(vii)Gross domestic capital formation1,000(viii)Consumption of fixed capital150(ix)Change in stock(-) 50(x)Mixed income4,000(xi)Scholarship to students80

Answer»

NNPFC = Private Final Consumption Expenditure + Government Finai Consumption Expenditure+Gross Domestic Capital Formation + Change in Stock - Net Imports - Depreciition - Net Factor Income to Abroad - Net Indirect Taxes

NNPFC= 5,000 + 3,000 + 1,000 -50 -200- 150 - (- 50) -800

NNPFC = 7,850

Net National Disposable Income = NNPFC+ Net Indirect Thxes + Net current transfers from the rest of the world Net National Disposable Income = 7,850 + 800 + 100 =Rs.8,750

990.

(a) Explain with the help of a hypothetical numerical example the assumption of diminishing marginal rate of substitution under the ordinal apporach of theory of consumer’s behaviour. (b) Why should marginal rate of subsititution diminish for a stable consumer’s equilibrium? 

Answer»

(a) The assumption of diminishing marginal rate of substitution states that the consumer will be willing to sacrifice lesser units of Good Y, so as to gain additional unit of the Good X. This is an extention of law of diminishing marginal utility. Diminishingmarginal rate of substitution is the reason behind convexity of Indifference Curve to the origin. 

The following table shows, bundles of Good X and Y which provide same level of satisfaction to the consumer:- 

BundlesUnits of Good XUnits of Good YMRS (∆/∆)
A121-
B4156Y : 1X
C3105Y : 1X
D464Y : 1X
E533Y : 1X

The above schedule shows that for each additional unit of Good X, consumer is willing to sacrifice lesser and lesser units of Good Y. 

(b) Marginal rate of substitution (MRS) is the rate at which consumer is willing to trade-off one good for the other. It depends on the quantity of the two goods s/he is consuming. A rational consumer will sacrifice lesser units of Good Y so as to acquire additional units of Good X, due to the application of law of diminishing marginal utility. 

MRS should be diminishing as additional consumption of Commodity X, symbolises fall in marginal utility due to which the consumer will not further increase its consumption. If it does not fall, s/he will keep on increasing the consumption of Commodity-X and will not reach a stable equilibrium. 

991.

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:Quantity123456789Marginal Revenue106222000-5 

Answer»
QuantityMR   TRAR    Ed = ΔQ/ΔP x P/Q   
1101010/1 = 10-
2610 + 6 = 1616/2 = 81/2 x 10/1 = 5
3216 + 2 = 1818/3 = 61/2 x 8/2 = 2
4218 + 2 = 2020/4 = 51/1 x 6/3 = 2
5220 + 2 = 2222/5 = 4.41/0.5 x 5/4 = 2.5
6022 + 0 = 2222/6 = 3.6 1/0.9 x 4.5/5 = 1
7022 + 0 = 2222/7 = 3.11/0.5 x 3.6/6 = 1.2
8022 + 0 = 2222/8 = 2.71/0.4 x 3.1/7 = 1.1
9-522 + (-5) = 1717/9 = 1.91/0.8 x 2.7/9 =0.38

992.

Identify the three phases of the law of variable proportions. Give reasons.Variable Input (Units)Total Product (Units)1327310412511

Answer»
Variable Input (Units)Total Product (Units)MP
133
274
3103
4122
511-1
  • Increasing returns to factor 

• Diminishing returns to factor 

• Negative returns to factor 

There are three phases of law of variable proportion i.e., increasing returns to factors, diminishing returns to factor and negative returns to factor. Increasing returns to factors is a phase in which TP increases at increasing rate and MP also rises. This can be identified between variable input 1 and 2 where MP rises from 3 to 4 units. 

Diminishing returns to factors is a phase in which TP increases at diminishing rate and MP falls but remains positive from unit 2 to 4 it can be observed that MP is falling but is positive. 

Negative returns to factor is a phase in which TP falls and MP becomes negative. From unit 4 to 5 it can be observed that MP becomes negative.

993.

Calculate (a) net national product at market price and (b) gross national disposable income :Rs. in crores(i)Gross domestic fixed capital formation400(ii)Private final consumption expenditure8,000(iii)Government final consumption expenditure3,000(iv)Change in stock50(v)Consumption of fixed capital40(vi)Net indirect taxes100(vii)Net exports(-)60(viii)Net factor income to abroad(-)80(ix)Net current transfers from abroad100(x)Dividend100

Answer»

(a) NNPMP = Private Final Consumption Expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Change in Stock + Net Exports + Net Indirect Thxes - Consumption of Fixed Capital - Net factor income to abroad

= 8,000 + 3,000 + 400 + 50 + 100 + (-60)-40-(-80)

=Rs.11,530 crores

(b) Gross National Disposable Income = NNPMP+Net current transfers from abroad + Consumption of Fixed Capital

= 11,530 + 100 + 40

= Rs.11,670 crores

994.

What is fiscal deficit ?

Answer»

Fiscal deficit refers to the difference between the total budget expenditure and total budget receipts of the government, other than the borrowings and liabilities. That is,

Fiscal Deficit = Budget Expenditure - Budget Receipts (other than borrowing and liabilities)

or, Fiscal Deficit =(Revenue expenditure + Capital Expenditure) - (Revenue receipts + Capital receipts other than borrowings)

or, Fiscal Deficit = (Revenue expenditure + Capital Expenditure) - (Revenue receipts + Recovery of loans + Other Receipts)

995.

Identify the equilibrium level of output using “marginal cost and marginal revenue” approach. Give reasons for your answer.Price (₹)Output (Units)Total cost (₹)Marginal cost (₹)61101062155632166428765379

Answer»
Variable input (Units)Total product (Units)MP
133
274
3103
4122
511-1
  • Increasing returns to factor 

• Diminishing returns to factor 

• Negative returns to factor 

There are three phases of law of variable proportion i.e., increasing returns to factors, diminishing returns to factor and negative returns to factor. Increasing returns to factors is a phase in which TP increases at increasing rate and MP also rises. This can be identified between variable input 1 and 2 where MP rises from 3 to 4 units. 

Diminishing returns to factors is a phase in which TP increases at diminishing rate and MP falls but remains positive from unit 2 to 4 it can be observed that MP is falling but is positive.

Negative returns to factor is a phase in which TP falls and MP becomes negative. From unit 4 to 5 it can be observed that MP becomes negative.

996.

Explain the feature of “few firms” and its implications in an oligopoly market.

Answer»

One of the features of oligopoly is that number of firms is small in oligopoly market.

Following are the implications of few firms in an oligopoly : 

1. Each firm enjoys considerable monopoly power in the market. Each firm has the freedom to fix the price of the product. 

2. There are barriers to the entry of new firms in the market. 

3. The feature of few firms makes the firms mutually interdependent. Firms adopt the policy of price rigidity. Firms try to avoid price competition and use other methods like advertising, better after sale service etc. to compete with each other.

997.

The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given in the schedules below.Quantity012345678Price524437312622191613Quantity012345678Price106090100102105109115125Use the information given to calculate the following:(a) The MR and MC schedules(b) The quantities for which MR and MC are equal(c) The equilibrium quantity of output and the equilibrium price of the commodity(d) The total revenue, total cost and total profit in the equilibrium

Answer»

(a)

Quantity
(units)
Price / AR
(Rs)   
TR = P x Q(Rs)MR = TRn - TRn - 1TC (Rs)MC= TCn - TCn - 1
(Rs)
0520-10-
14444446050
23774309040
331931910010
426104111022
52211061053
61911441094
716112-21156
813104-812510

(b) MR equals MC at the 6th unit of output i.e., 4.
(c) At equilibrium, MR equals MC, and here MR equals MC at the 6th unit of output, where MC is upward sloping. Thus, the equilibrium price is Rs 19.
(d) TR = Rs 114
TC = Rs 109
Total profit = TR – TC
= Rs 114 – 109 = Rs 5

998.

What is meant by prices being rigid ? How can oligopoly behaviour lead to such an outcome ?

Answer»

Price being rigid means that oligopolist firms are unwilling to change the price i.e., market price does not move freely in response to changes in demand. Once a price has been determined, a firm will avoid changing it.

If a firm in oligopoly market reduces its price, its rivals will feel drain on their customers and, consequently will follow this price cut. The ultimate result will be that there will not be a significant increase in the sales of the firm. If an oligopolist firm raises its price, its rivals may not follow it. Sales of the rivals will increase. As a result of price rise, the oligopolist firm will have lesser sales while its rivals’ sales will increase. Hence, an oligopolist firm will be extremely unwilling to change its price because neither a price increase nor a price reduction will be beneficial for the oligopolist firm.

999.

A monopoly firm has a total fixed cost of Rs 100 and has the following demand schedule:Quantity      12345678910Marginal Revenue100 908070605040302010Find the short run equilibrium quantity, price and total profit. What would be the equilibrium in the long run? In case the total cost is Rs 1000, describe the equilibrium in the short run and in the long run.

Answer»
QuantityPrice (P) (Rs)TR= P x Q(Rs)
1100100
29180
380240
470280
560300
650300
740280
830240
920180
1010100

As the total cost of the monopolist firm is zero, the profit will be the maximum where TR is maximum. That is, at the 6th unit of output the firm will be maximising its profit and the short run equilibrium price will be Rs 50.
Profit = TR – TC
= 300 – 0
Profit = Rs 300
If the total cost is Rs 1000, then the equilibrium will be at a point where the difference between TR and TC is the maximum. TR is the maximum at the 6th level of output.

So profit = 300 – 1000 = - 700
So, the firm is earning losses and not profit. As the monopolist firm is incurring losses in the short run, it will stop its production in the long run.

1000.

What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?

Answer»

Price rigidity implies that the price is unresponsive to the changes in demand. Every firm in an oligopoly market is faced with a Kinked Demand Curve, the kink being at that point on the demand curve which corresponds to the prevailing common price accepted by all the firms at which they sell their output.This is because of the fact that even if any firm raises the price of its product with the motive of earning higher profits, the other firm will not do so, and the first firm will lose its customers. On the other hand, if one firm lowers its price in order to earn higher profits by maximising its sales, then in response, the other firm may also reduce the price. Consequently, the increase in total market sales is shared by both the firms. The firm that initiated selling at a lower price may get a lower share of the increase than expected.

 Therefore, the firms do not change their prices due to the fear of rival's reaction. Hence, there is no incentive for any firm to change its price. That is why the prices are regarded as rigid prices or sticky prices.