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Basic Concept in Economics Question Answer Class 11 Economics Chapter 1 Maharashtra Board

February 17, 2025February 16, 2025 by Bhagya

Balbharti Maharashtra State Board Class 11 Economics Solutions Chapter 1 Basic Concept in Economics Textbook Exercise Questions and Answers.

Std 11 Economics Chapter 1 Question Answer Basic Concept in Economics Maharashtra Board

Class 11 Economics Chapter 1 Basic Concept in Economics Question Answer Maharashtra Board

Economics Class 11 Chapter 1 Question Answer Maharashtra Board

1. Choose the correct option:

Question 1.
Statements related to Economics:
(a) Economics is a social science.
(b) Concept of economics is derived from the Greek word ‘Oikonomia’.
(c) Economics is related to the study of human economic behaviour.
(d) Economics is related to the management of the household.
Options:
(1) a, b and c
(2) a and b
(3) b and c
(4) a, b, c, and d
Answer:
(1) a, b and c

Question 2.
Statements incorrect with reference to Adam Smith’s definition:
(a) Adam Smith is a classical economist.
(b) Wealth of Nations is authored by Adam Smith.
(c) Economics is the science of wealth.
(d) Economics studies common man.
Options:
(1) d
(2) a, b and c
(3) a and d
(4) c and d
Answer:
(1) d

Question 3.
Key points in Lionel Robbins’ definition:
(a) Wants are unlimited
(b) Means are limited
(c) Wants are not gradable
(d) Means have alternative uses.
Options:
(1) a and b
(2) b and c
(3) a, b and d
(4) a, b, c, and d
Answer:
(4) a, b, c, and d

Question 4.
Statements related to wealth:
(a) Wealth means anything which has market value and can be exchanged for money.
(b) It is external to a human beings.
(c) Wealth has no utility.
(d) Wealth is scarce and exchangeable.
Options:
(1) a, b and d
(2) a, c and d
(3) b, c, and d
(4) None of the above
Answer:
(1) a, b and d

Question 5.
Aspects considered in National Income:
(a) Final goods and services are included in national income.
(b) Produced goods in a financial year are included in national income.
(c) Double counting is avoided.
(d) Value is considered as per market price.
Options:
(1) a and c
(2) b and c
(3) a, c and d
(4) a, b, c, and d
Answer:
(3) a, c and d

2. Complete the correlation:

Question 1.
Natural sciences : Exact sciences : : Social sciences : ___________
Answer:
Abstract/Inexact Sciences

Question 2.
Physics : ___________ : : Psychology : Social Science
Answer:
Natural Science

Question 3.
Arthashastra : Kautilya : : Wealth of Nations : ___________
Answer:
Adam Smith

Question 4.
Necessity : ___________ : : Comforts : Washing machine
Answer:
Food

Question 5.
Free goods : Value-in-use : : Economic goods : ___________
Answer:
Value-in-exchange

3. Identify and explain the concepts from the given illustrations:

Question 1.
My father purchased a two-wheeler vehicle. This helps to fulfill my travel needs.
Answer:
Comfort Want.
Comforts are those wants that make our life comfortable. In the above illustration, the purchase of a two-wheeler vehicle will make my travel easier. It is not a necessity, it is for my comfort.

Question 2.
A study of the annual income of the family of Ramesh.
Answer:
Micro Economic – Personal Income
Microeconomics is the study of particular firms, particular households’ individual prices, wages, incomes, individual industries, particulars commodities. In the above illustration, since it is a study of individual families, it will rightly be said as microeconomic and form the part of Personal Income.

Question 3.
As per the data for the financial year 2018-19, the country’s production of goods and services increased by 20%.
Answer;
Economic Growth.
Economic growth means an increase in the real national income of the country. In the above illustration, since the country’s production of goods and services has increased, it is rightly said to be economic growth.

HINDPETRO Pivot Point Calculator

Question 4.
Karuna’s mother saves ₹ 1000/- every month out of her given salary.
Answer:
Savings.
Saving is a part of income, which is kept aside to meet future needs. In the above illustration, since Karuna’s mother is foregoing her current consumption, it forms part of her savings.

Question 5.
Ram’s father utilized his provident fund amount to set up the grocery store.
Answer:
Investment.
Investment refers to the creation of capital assets through mobilisation of savings. In the above case, Mr. Ram’s father mobilises his savings of provident fund into a business of grocery store, which is called as Investment.

4. Answer the following:

Question 1.
Explain the features of wealth.
Answer:
In economics, wealth is anything that has market value and which commands a price.
Wealth is a commodity that can be exchanged for money.
A commodity must possess the following features to be considered wealth.

Utility
Scarcity
Transferability
Externality

(i) Utility: Utility means the capacity of a commodity to satisfy a human want. A commodity must have to want satisfying power. E.g. books, calculators, etc. have utility. So they are regarded as wealthy.

(ii) Scarcity: A commodity is called wealth, if it is scarce in supply then its demand. All economic goods are considered as wealth because the price is paid for them due to scarcity.

(iii) Transferability: A commodity is called wealth if it can be transferred from one person to another. It includes material or tangible goods. E.g. furniture, car, etc.

(iv) Externality: A commodity is regarded as wealth only if it has externality i.e. it must be external to the human body. E.g. computer.
(In the case of transferability, Physical transferability means the actual transfer of goods from one person to another. Whereas, notional transferability refers to the transfer of ownership rights. E.g. land, building, etc.) Internal qualities of human beings like voice, beauty, etc. are neither external nor transferable. So they are not wealthy in an economic sense.

Question 2.
Explain the characteristics of human wants.
Answer:
In the ordinary sense, the word, ‘want,’ and ‘need’ are considered as same. But, in economics, a need is something that is necessary for survival whereas, want is the expression of lack of satisfaction. It enables the person to satisfy his want.

Characteristics of wants are as follows:

Wants are unlimited: Wants are multiple. They are never-ending. They arise again and again. When one want is satisfied another arises. Wants go on increasing.
Wants are recurring in nature: Some of the humans want to occur again and again. They arise even if it is satisfied once. E.g. We take food after a certain time interval to satisfy hunger.
Wants are complementary: Some wants are complementary to each other. Sometimes, two or more goods are required to satisfy single want. E.g. the want for mobile can be satisfied only when we fulfill the want of a sim card.
Wants to differ with gender: Wants of men and women are different, as per their needs. E.g. a lady may take Saree while a gentleman wants a Shirt and Tie.
Wants to differ with age: Human wants to go on changing as age differs. E.g. a baby wants a doll whereas a student wants a book, etc.
Wants are competitive: We cannot satisfy all our wants at a time because means are limited. So there is competition among wants. That want is preferred first which is most urgent.
Wants are alternative: Some wants are alternative. E.g. having tea or coffee, using an umbrella or raincoat, etc.
Wants to differ with culture: Human wants to vary with culture. E.g. an American wants a coat and hat while an Indian wants a kurta.
Wants to differ with climate: Wants to go on changing with the season. E.g. a person who wants woolen clothes in winter and Ice-cream in summer.
Wants to differ with preferences: Human wants to differ according to tastes and preferences. Wants are also influenced by the habits of the people. E.g. Person ‘A’ has a preference for books, while Person ‘B’ has a preference for clothes.

5. State with reasons whether you agree or disagree with the following statements:

Question 1.
All wants can be satisfied at a time.
Answer:
No, I do not agree with the statement.

Human wants are unlimited.
They are unending. If one want is satisfied, another want arises and this goes on to increase.
Some wants occur again and again even if satisfied once.

Question 2.
Human wants change as per the seasons and preferences.
Answer:
Yes, I agree with the statement.

In the economic sense want means a feeling of ‘lack of satisfaction,
This feeling enables the person to satisfy his want.
Human wants to differ with seasons.
E.g. a person requires woolen clothes in winter and an umbrella in the rainy season.
Wants also differ from preferences, i.e. they are influenced by individual habits and tastes.

Question 3.
Value-in-use and Value-in-exchange are the same.
Answer:
No, I do not agree with the statement.

Value-in-use refers to the usefulness of a commodity. Air, Water, Sunshine, etc. have high value in use.
They are basically free goods.
Value in exchange means the value of a commodity expressed in terms of money that is the price of a commodity.
E.g. Car, T.V., computers, etc., have value-in-exchange as they command a price. They are called economic goods. Thus, value in use and value in exchange is not the same.

6. Answer in detail:

Question 1.
Explain the basic concepts of macroeconomics.
Answer:
Macroeconomics is the study of aggregates covering the entire economy like total employment, national income, national output, total investment, total savings, total consumption, aggregate supply, aggregate demand, general price level, etc.

Concepts of Macro Economics.

National Income: It is the aggregate monetary value of all final goods and services produced in a country during a year.
Saving: It is that part of income that is not spent currently as consumption in order to satisfy future needs.
Investment: It means the creation of capital assets through mobilisation of savings, e.g. investment in machinery, equipment, etc.
Trade Cycles: Fluctuations in business due to inflation and deflation in the economy are called trade cycles.
Economic Growth: It means an increase in the real income of the country, over a larger period of time It
is a quantitative concept.
Economic Development: It means economic growth along with progressive changes in the well-being of the people of the country. It is a qualitative concept.

11th Economics Digest Chapter 1 Basic Concept in Economics Intext Questions and Answers

Do you know? [Textbook Page. No. 1]

Who was Kautilya?
Answer:
Kautilya was a great statesman, philosopher, economist, and royal advisor during the Mourya period. He is also known as ‘Chanakya’ or ‘Vishnugupta’. He wrote a book called ‘Arthashastra’.

Do you know? [Textbook Page. No. 2]

(a) Who contributed to the field of Environmental Economics?
Answer:
Mr. Nordhaus contributed to the field of Environmental Economics.

(b) Who won Nobel Memorial Prize in Economics for 2018?
Answer:
Paul Romer and William Nordhaus won Nobel Memorial Prize in Economics for 2018.

Find out: [Textbook Page No. 2]

Other Nobel Prize winners in Economics.
Answer:
Nobel Prize Winners (2010 – 2017)

Year	Noble Prize Winners
2010	Dale T. Mortensen, Christopher A. Pissarides, Peter Diamond
2011	Thomas J. Sargent, Christopher A. Sims
2012	Alvin E. Roth, Lloyd Shapley
2013	Robert J. Shiller, Eugene Fama, Lars Peter Hansen
2014	Jean Tirole
2015	Angus Deaton
2016	Bengt Holmstrom, Olive Hart
2017	Richard Thaler
2018	William Nordhaus, Paul Romer
2019	Abhijit Banerjee, Esther Duflo, Michael Kremer
2020	Paul Milgrom, Robert B. Wilson

Do you know? [Textbook Pg. No. 2]

Name the economist belonging to:

Classical School of Thought of 18th century	Neo-classical School of Thought of 19th and 1st half of 20th century	Modern School of Thought from 20th century till date.

Answer:

Classical School of Thought of 18th century	Neo-classical School of Thought of 19th and 1st half of 20th century	Modern School of Thought from 20th century till date.
Adam Smith, David Ricardo, J. S. Mill, T. R. Malthus, etc.	Alfred Marshall, A. C. Pigou, Irving Fisher, etc.	J. M. Keynes, Lionel Robbins, Paul Samuelson, etc.

Find out. [Textbook Page No. 4]

Which of the following is ‘free good’ or ‘economic good’?

Water in river
Oxygen in cylinder
Sunshine
Water processed for drinking
Air

Answer:

Free Good	Economic Good
Water in river Sunshine Air	Oxygen in cylinder Water processed for drinking

Do you know? [Textbook Page No. 5]

What do you mean by Physical transferability and Notional transferability?
Answer:
Physical transferability: When goods can be actually transferred from one person to another and from one place to another place it has physical transferability. E.g. Motor Car, Furniture, Machinery, etc. Notional transferability: When goods cannot be actually transferred physically it has notional transferability. E.g. Land, Building, etc.

Try this: [Textbook Page No. 5]

Prepare a list of commodities that satisfy the condition of physical transferability and notional transferability.
Answer:

Commodities having Physical Transferability	Commodities having Notional Transferability
Motor Car Furniture Machinery Consumer goods	Land Building Premises

Do you know? [Textbook Page No. 5]

Why are inborn qualities not considered wealth?
Answer:
Inborn qualities like beauty, melodious voice, etc. are not considered as wealth because they do not possess all the features of wealth like – externality and transferability.

You Should Know? [Textbook Page No. 5]

Explain various types of income?
Answer:

Fixed income: Income that remains stable over a period of time is called fixed income. It is always positive. E.g. rent, wages, etc.
Fluctuating income: Income that is not fixed but keeps on changing is called Fluctuating income. E.g. profit. It can be positive, negative, or zero.
Money income: Income received in the actual currency of the country is called Money income. It is the income in cash, E.g. ₹ 70,000.
Real income: The purchasing power of money income is called Real income. E.g. Commodities purchased out of money income.
Contractual income: Income paid as per the terms and conditions of the contract is called Contractual income. E.g. rent, wages, etc.
Residual income: Income that is left over after making payments to all factors of production is called residual income, E.g. profit.
Earned income: Income obtained after participating in the productive activity is called Earned income. E.g. rent, wages, interest, profit.
Unearned income: Income received from all sources without indulging in any productive activity is called Unearned income. E.g. windfall gains, lottery prizes.

Always remember [Textbook Page No. 6]

What activities are considered ‘unproductive’?
Answer:
Activities that are carried out just for sake of charity or hobby or where no monetary exchange takes place are considered as ‘unproductive’ activities.

Do you know? [Textbook Page No. 7]

What is ‘Cyclical Unemployment’?
Answer:
Unemployment created due to the impact of cyclical fluctuations is called ‘Cyclical Unemployment. It occurs due to inflation and depression in the economy.

Find out: [Textbook Page No. 7]

Which of the following terms is a part of microeconomics or macroeconomics?

Global poverty
Price of a commodity
Balance of payments
Profits of a firm
National income

Answer:

Micro Economics	Macro Economics
Price of a commodity Profits of a firm	Global Poverty Balance of payments National Income

Urban Local Government Bodies Question Answer Class 6 Civics Chapter 4 Maharashtra Board

February 17, 2025February 16, 2025 by Bhagya

Balbharti Maharashtra State Board Class 6 Civics Solutions Chapter 4 Urban Local Government Bodies Notes, Textbook Exercise Important Questions and Answers.

Std 6 Civics Chapter 4 Question Answer Urban Local Government Bodies Maharashtra Board

Class 6 Civics Chapter 4 Urban Local Government Bodies Question Answer Maharashtra Board

Urban Local Government Bodies Class 6 Questions And Answers

1. Choose the right option and fill in the blanks:

Question 1.
The first city in India to have a Municipal
Corporation is
(a) Delhi
(b) Mumbai
(c) Agra
Answer:
Mumbai

Question 2.
The body that looks after the administration of places that are in the process of becoming cities:
(a) Municipal Council
(b) Municipal Corporation
(c) Nagar Panchayat
Answer:
Municipal Council

Question 3.
The office bearer who supervises the work of the Municipal Council is the
(a) Chief Officer
(b) Executive Officer
(c) Commissioner
Answer:
Executive officer

2. Answer in brief:

Question 1.
What problems do people face in cities?
Answer:
There are several problems in cities: Shortage of housing, insufficient space, traffic congestion, problem of waste disposal, increase in crime and a large proportion of slum population.

Question 2.
Name the various committees of the Municipal Corporation.
Answer:
Education committee, Health committee, Transport committee, Standing committee, Ward committee, Women and Child Welfare committee, etc.

3. Make a chart giving information about the urban local government bodies according to the points given below.

Points	Nagar Panchayat	Municipal Council	Municipal Corporation
(1) Office Bearers and Officers
(2) Number of Members

Answer:

Points	Nagar Panchayat	Municipal Council	Municipal Corporation
(1) Office Bearers and Officers	President and Vice President Chairman Executive officer Councillors	President Vice president Corporators Executive officer	Mayor Deputy Mayor Corporators Municipal Commissioner
(2) Number of Members	10 elected ward members, 3 nominated members	Determined so as to be in proportion to the population of the city	Determined so as to be in proportion to the population of the city

4. Can you tell?

Question 1.
Which are essential functions of the Municipal Council.
Answer:
The essential functions of Municipal Council are:

Lighting of public streets.
Providing drinking water.
Maintaining public hygiene.
Sewage disposal.
Registration of birth/death/marriage, etc.

Question 2.
Where does the Nagar Panchayat function?
Answer:
Nagar Panchayat functions in those areas which are neither fully rural nor fully urban.

5. Make different lists of places in your district according to whether they have a Nagar Panchayat, Municipal Council or a Municipal Corporation.

Activities:

Make your own health awareness slogans to help prevent the spread of infectious diseases, and display them in your classroom.
Visit the Municipal Corporation nearest to you and find out which new schemes have been taken up.
Discuss in class what you could do to contribute to them.

Class 6 Civics Chapter 4 Urban Local Government Bodies InText Questions and Answers

What would you do?

Question 1.
When you hand over your household waste to the waste pickers.
Answer:

I will ensure that I separate organic and inorganic waste.
I will ensure that if there is anything which can be reused and recycled then it is sent to the recycling centre.
E-waste if any, will be collected and sent to the e-waste processing centre.

Question 2.
The road is waterlogged as the water pipe has broken.
Answer:

I will immediately inform the public works department.
I will ensure that quick steps are taken to avoid the waste of the precious resource.

Question 3.
You notice that unclean, impure water is being used for pani puns.
Answer:

I will immediately inform the food safety and sanitation department about the same.
I will ensure that strict action is taken against the vendor.

Question 4.
Many people are throwing plastic bags from the bridge into the river.
Answer:

I will inform the Municipal Commissioner about the same.
I will request him to create awamess about the need to take steps to control pollution of water bodies.
I will also request him to develop environment consciousness amongst the people about the hazards of using plastics and its disposal in water bodies.

Question 5.
The Municipal Councils’ programme to clean the slum areas has been published in the newspaper, but you think that one of the planned actions is improper.
Answer:
I will write a letter to the editor and express my views about the same. I will explain why the action may not have the desired effect and suggest an alternative measure.

Why did the Corporation do it?

Question 1.
The corporation has refused permission for any construction work that would require the cutting down of trees.
Answer:
The corporation wants to ensure that the environment is conserved and preserved and that the environmental balance is not disturbed in the name of progress.

Question 2.
It has implemented many programmes to control the spread of diseases like dengue, swine flu, etc.
Answer:
To take steps towards creating a healthy society and contain the spread of epidemics.

Question 3.
Modernised the Fire Brigade.
Answer:
To be armed with state of art technology in case of emergency caused due to fire.

Question 4.
Inspected the weighing scales in the vegetable market.
Answer:
To ensure that people are not cheated by vendors and that they get the right quantity of vegetables for the money paid.

What did you feel on reading this?

Question 1.
The Metro will soon run in your city.
Answer:
The Urban local government bodies in the city are working towards infrastructural development of the city.

Question 2.
Permission has been given for the construction of a 24 storey building.
Answer:
It is important to take permission from the Municipal authorities before construction of building.

Question 3.
Gardens and Leisure Centres will be established in every ward.
Answer:
The urban local government bodies ensure that proper facilities are provided to the people for rest, recreation and general well being.

Question 4.
Action will be taken against those who use purified water to water the gardens or to wash their cars.
Answer:
The local gemment bodies take steps to ensure that water, a scarce resource, is not wasted.

Question 5.
It has bee made compulsory to dispose of wet garbage within one’s locality.
Answer:
Waste management is given priority by the local government bodies.

Question 6.
Old age homes will be constructed for the benefit of senior citizens.
Answer:
The local government bodies take steps to ensure that all citizens including senior citizens experience safety and security. They want to ensure that the senior citizens lead a life of dignity.

Students Activity:

Question 1.
Find out:
In how many cities of Maharashtra State is the administration carried out through Corporations?
In which year was the Municipal Corporation of your city established?

Question 2.
Try this:
Form an Education Committee for your class. The committee should have an equal number of boys and girls as representatives. They should discuss the following issues and prepare a report.
(a) Facilities in the classroom.
(b) A proposal for setting up a small library for the class.
(c) Oraganising a sports competition.

Question 3.
Do this:
Find out the hospital run by the Municipal Council or Corporation in your area. What facilities are offered to the patients there? What is a person required to do if she/he wants to take treatment there?

Question 4.
Make different lists of places in your district according to whether they have a Nagar Panchayat, Municipal Council or a Municipal Corporation.

Class 6 Civics Chapter 4 Urban Local Government Bodies Additional Important Questions and Answers

Name the following:

Question 1.
The Urban local Government bodies:
Answer:

Nagar Panchayat.
Municipal Council.
The Municipal Corporation.

Question 2.
The Nagar Panchayat elects these members from amongst themselves:
Answer:

President.
Vice-president.

Question 3.
The chairman of all the meetings of Municipal Council:
Answer:
President.

Question 4.
In the absence of the President, he looks after the work of the Municipal Council:
Answer:
Vice-president.

Question 5.
The elected members of Municipal Corporation:
Answer:
Corporators.

Question 6.
Any two committees of the Municipal Corporation:
Answer:
Health committee, Transport committee.

Question 7.
He prepares the annual budget of the Municipal Corporation:
Answer:
The Municipal Commissioner.

State whether the following statements are True or False giving reasons:

Question 1.
There is a Nagar Panchayat in every city.
Answer:
False.
There is a Nagar Panchayat in those areas which are neither fully rural nor fully urban.

Question 2.
Lighting public streets is the discretionary function of the Municipal Council.
Answer:
False.

There are some functions that are binding on the Council which are known as obligatory functions.
Lighting public street is one such obligatory function.

Question 3.
The total number of members in a Municipal Corporation is determined so as to be in proportion to those who contest elections
Answer:
False.
The total number of members in a Municipal Corporation is determined so as to be in proportion to the population of the city.

Answer in brief:

Question 1.
Name the sources of revenue of the Municipal Council.
Answer:
Property tax, education tax, water tax, grants from State Government, tax on markets, etc.

Question 2.
All local government bodies have to carry out some essential functions. What, according to you, are the essential functions of a Nagar Panchayat?
Answer:

Providing essential facilities and other services to the citizens.
Implementing sanitation programmes.
Providing infrastructure facilities like roads.
Providing educational facilities.
Water supply.
Ensure that a drainage system is in place.
Maintain records of births and deaths.

Do you know?

Question 1.
For every Municipal council, there is a Chief Officer. He implements the decisions taken by the Municipal Council. There are several officers who assist him.
Would you like to become such an officer? If you become a Health Officer, what functions would you perform?
Answer:
Yes I would like to become an officer in the Municipal Council.
If I become a Health officer my functions would be:

Ensure that community health is maintained through health check-ups, Vaccination drives ,etc.
Take step to control epidemics.
Create awareness amongst the citizens regarding health and sanitation.
Supervise the working of the health centre.
Training of the professionals working towards community health.

Question 2.
Appeal from Municipal Council:
Calling all citizens – to take the following measures to stop breeding of mosquitoes and curb the spread of dengue:

Do not stock old tyres, cocount shells, empty cans or boxes on your terrace or around your house.
In case of persistent fever go to a doctor without delay.
Keep your surroundings clean.

In response to the above, what would you do in your house and in the surroundings?
Answer:
I will ensure that I keep my surroundings clean. If there is any waste water accumulation, I will inform the authorities and request them to take necessary steps. I will pay special attention to waste disposal. I will also put into practice the maxim: ‘Reduce, Reuse, Recycle…. Restore’ for a clean and healthy environment.

6th Std Civics Questions And Answers:

Rural Local Government Bodies Question Answer Class 6 Civics Chapter 3 Maharashtra Board

February 17, 2025February 16, 2025 by Bhagya

Balbharti Maharashtra State Board Class 6 Civics Solutions Chapter 3 Rural Local Government Bodies Notes, Textbook Exercise Important Questions and Answers.

Std 6 Civics Chapter 3 Question Answer Rural Local Government Bodies Maharashtra Board

Class 6 Civics Chapter 3 Rural Local Government Bodies Question Answer Maharashtra Board

Rural Local Government Bodies Class 6 Questions And Answers

1. Put a tick (✓) in the right box:

Question 1.
The ______ looks after the local adiministration of the village.
(a) Gram Panchayat
(b) Panchayat Samiti
(c) Zilla Parishad
Answer:
(a) Gram Panchayat

Question 2.
It is binding to hold at least ______ meetings of the Gram Sabha in each financial year.
(a) four
(b) five
(c) six
Answer:
(c) six

Question 3.
At present, there are _______ districts in Maharashtra.
(a) 34
(b) 35
(c) 36
Answer:
(c) 36

2. Make a list of the functions of the Panchayat Samiti.
Answer:

Building roads, gutters, wells and borewells.
Organising vaccination drives.
Providing clean drinking water.
Maintaining cleanliness of roads and arrange for the disposal of waste.
Helping the farmers improve agriculture and livestock.
Provide primary education.
Promote handicrafts and cottage industries.
Provide financial aid to the weaker sections

3. What is your opinion?

Question 1.
The Gram Panchayat levies various taxes.
Answer:

The Gram Panchayat looks after the administration of the village.
It carries out the functions relating to water supply, electricity, registration of births, deaths and marriages.
To carry out these functions money is required and taxes are one of the sources of income of Gram Panchayat.

Question 2.
The number of Zilla Parishads is less than the total number of districts in Maharashtra.
Answer:

Every district has a Zilla Parishad. At present, the state of Maharashtra has 36 districts but only 34 Zilla Parishads.
The reason is that Mumbai city district and Mumbai Suburban District do not have a rural population.
Therefore, they do not have Zilla Parishads.

4. Complete the Table:

My Taluka, My Panchayat Samiti :
Name of the Taluka: ______.
The name of the chairman of the Panchayat Samiti: ____.
The name of the Deputy Chairman of the Panchayat Samiti: _____.
The name of the Block Development Officer: ______.
The name of the Block Education Officer: _______.

5. Write a brief note on:

Question 1.
The Sarpanch:
Answer:

The elections to a Gram Panchayat are held every five years.
The elected members elect a Sarpanch and Deputy Sarpanch from amongst themselves.
The meetings of the Gram Panchayat are held under the chairmanship of the Sarpanch.
It is his responibility to implement the development schemes of the village.
The members of the Gram Panchayat can bring a motion of no confidence against Sarpanch who is not carrying out his responsibilities properly.
In the absence of the Sarpanch, the Deputy Sarpanch looks after the work of a Gram Panchayat.

Question 2.
The Chief Executive Officer:
Answer:

The decisions taken by the Zilla Parishad are implemented by the Chief Executive Officer of the Zilla Parishad.
He is appointed by the State Government.

Project:

Organize a mock Gram Sabha and enact the roles of the Sarpanch, members of the Gram Panchayat,voters, Gram Sevak.
Make a chart depicting the possible structure of a Balsansad and display it in the class.
Obtain information about the schemes run by the Zilla Parishad in your area or near your city.

Class 6 Civics Chapter 3 Rural Local Government Bodies Additional Important Questions and Answers

Fill in the blanks by appropriate words from the options given below:

Question 1.
If the population of a village is less than ______ then two or more such villages come under one Gram Panchayat, this is then called a ‘Group Gram Panchayat’.
(a) 750
(b) 500
(c) 600
Answer:
500

Question 2.
The state of Maharashtra has _____ Zilla Parishads.
(a) 34
(b) 35
(c) 36
Answer:
(a) 34

Question 3.
Elections of the Zilla Parishad are held every _______ years.
(a) six
(b) five
(c) three
Answer:
(b) five

Question 4.
The chief executive officer of the Zilla Parishad is appointed by the ______.
(a) State Government
(b) Central Government
(c) Elected member of Zilla Parishad from among themselves
Answer:
(a) State Government

Name the following:

Question 1.
The local government bodies at the rural level :
Answer:

The Gram Panchayat.
The Panchayat Samiti.
The Zilla Parishad.

Question 2.
He implements the development schemes of the village :
Answer:
Sarpanch.

Question 3.
In the absence of the Sarpanch the office bearer who looks after the work of the Gram Panchayat :
Answer:
Deputy Sarpanch.

Question 4.
The secretary of the Gram Panchayat :
Answer:
The Gram Sevak.

Question 5.
The assembly of all the voters of the village or rural area :
Answer:
Gram Sabha.

Question 6.
Minimum number of meetings which must be held in each financial year:
Answer:
Six.

Question 7.
Any two issues raised by women before the meeting of the Gram Sabha :
Answer:

Employment
Health

Question 8.
Any two sources of the revenue of the Gram Panchayat :
Answer:

Water tax
Pilgrimage tax

Question 9.
The link between the Zilla Parishad and Gram panchayat:
Answer:
Panchayat Samiti.

Question 10.
The office bearer who has the responsibility of calling the meetings and conducting business of the meetings of the Panchayat Samiti:
Answer:
The chairman.

Question 11.
Any two sources of income of the Panchayat Samiti :
Answer:

Money from district fund.
Grants from the State Government.

Question 12.
Local self government at the district level :
Answer:
Zilla Parishad.

Question 13.
He implements the decisions taken by the Zilla Parishad :
Answer:
Chief excutive officer.

Make a list of the functions of the:

Question 1.
Gram Panchayat.
Answer:

The Gram Panchayat looks after the administration of the village.
The Gram Panchayat carries out the functions relating to water supply, electricity, registration of births, deaths and marriages.

Question 2.
Gram Sevak.
Answer:

Looks after the day-to-day functioning of the Gram Panchayat.
Explains its development scheme to the residents of the village.

Question 4.
Zilla Parishad provides the following facilities.
Answer:
Education facilities, health facilities, water supply facilities, making provision of seeds, supply of electricity, tree plantation drives in the village.

Question 5.
President of the Zilla Parishad
Answer:

He presides over the meetings of the Zilla Parishad.
He exercise control over business conducted during the meetings.
He control the financial transactions of the Zilla Parishad.

What is your opinion?

Question 1.
Local self government bodies at the rural level have an important role to play.
Answer:

Local self government bodies play an important role in providing good governance to the rural areas.
People too get an opportunity to take part in the decision making.
It is also a training ground for democracy.

What would you do?

Where would you tell Dinesh and Naina to go for the following things?

Question 1.
To get their younger sibling vaccinated :
Answer:
Primary Health centre.

Question 2.
To accompany their father to get the 7/12 extract:
Answer:
Reveue department.

Question 3.
To learn about the use of a new manure :
Answer:
Agriculture department.

Question 4.
To complain against contaminated water supply :
Answer:
Sanitation department.

Question 5.
To get a birth certificate :
Answer:
Health Department.

Question 6.
To get the income / caste certificate :
Answer:
Revenue Department.

Write a brief note on:

Question 1.
Women’s participation in the Gram Sabha:
Answer:
A meeting of the women of a village is held before the meeting of the Gram Sabha. Here, women feel free to discuss a variety of issues. During the Gram Sabha, they speak with greater concern about issues such as drinking water, prohibition, employment, fuel, health etc. They also suggest measures for bringing about necessary changes.

6th Std Civics Questions And Answers:

Diversity in Society Question Answer Class 6 Civics Chapter 2 Maharashtra Board

February 17, 2025February 16, 2025 by Bhagya

Balbharti Maharashtra State Board Class 6 Civics Solutions Chapter 2 Diversity in Society Notes, Textbook Exercise Important Questions and Answers.

Std 6 Civics Chapter 2 Question Answer Diversity in Society Maharashtra Board

Class 6 Civics Chapter 2 Diversity in Society Question Answer Maharashtra Board

Diversity in Society Class 6 Questions And Answers

ers

1. Fill in the blanks:

Question 1.
To live among a variety of communities is to experience
Answer:
oneness

Question 2.
India is an important ______ nation of the world.
Answer:
secular

Question 3.
Cooperation makes ________ in society healthier.
Answer:
interdependence

2. Answer each of the following questions in one sentence:

Question 1.
What is meant by cooperation?
Answer:
Cooperation is the process of sharing and helping each other in solving problems and removing difficulties.

Question 2.
Why have we accepted the principle of secularism?
Answer:
We have great linguistic and religious diversity in our country and in order to preserve this diversity in a sound and healthy manner we have adopted the principle of secularism.

3. Answer the following questions in two or three sentences:

Question 1.
What is it that shows the unity in Indian society?
Answer:

There are many languages, religions, cultures, customs and traditions in the Indian society but despite our differences we are living together for many years.
This has developed a feeling of oneness amongst us and this oneness has lead to unity in the Indian society.

Question 2.
When do conflicts arise in society?
Answer:

Disputes and conflicts arise when there is lack of agreement in the opinion, ideas and views of the people.
Just as there is cooperation in the society, so also at times there can be differences of opinion, disputes and conflicts.
Prejudices and misconceptions about each other too can also lead to conflicts.

Question 3.
What are the advantages of cooperation?
Answer:

Cooperation makes interdependence in society healthier and allows inclusion of everybody in the society.
It is a process of inclusion and of moving ahead, taking along all the sections of society.

Question 4.
You see two children quarrelling. What would you do?
Answer:

I will explain to the children that quarelling with one another is bad.
I will advise them to resolve conflicts through understanding and with a spirit of friendship.
I will explain to them the importance of tolerance.

Question 5.
You are the Chief Minister of the school cabinet. What are the functions you would perform?
Answer:
I would perform the following functions as the chief minister of the school cabinet:

Maintain discipline and order in school.
Ensure that the different committee members of the school cabinet are doing their duties well.
Coordinate with all the ministers to ensure that the day-to-day activities of the school are carried out in an organised manner.

Activities:

Set up and run a Students’ Cooperative Store in your school, with the help of your teachers. Write about your experiences of this activity.
Make a chart of all the rules you follow in the school and in your class and display the chart in your class.

Class 6 Civics Chapter 2 Diversity in Society Additional Important Questions and Answers

Fill in the blanks:

Question 1.
Lack of cooperation hampers our ______.
Answer:
progress

Question 2.
______ or _______ about each other can also lead to conflicts.
Answer:
Prejudices, misconception

Question 3.
People find a way to resolve conflicts through _____ and ________.
Answer:
compromise, understanding

Question 4.
Conflicts can end if people make efforts to understand each other and show a spirit of ________.
Answer:
tolerance

Question 5.
An understanding attitude leads to a lot of new __________.
Answer:
learning

Question 6.
The ________ and ________ of every individual in a society are well-defined.
Answer:
responsibilities, duties

Question 7.
Lack of cooperation ________ our progress.
Answer:
hamper

Name the following:

Question 1.
The feeling which leads to unity in Indian Society:
Answer:
Oneness.

Question 2.
Any two aspects wherein diversity is witnessed in India:
Answer:
Language, religion.

Question 3.
The spirit which end conflicts:
Answer:
Tolerance.

Question 4.
Two essential factors which are important for regulation of society:
Answer:
Laws, traditions.

Complete the analogy:

Question 1.
Secularism : religious harmony :: progress : _______.
Answer:
Cooperation

Question 2.
Prejudices or misconceptions : ________ :: compromise and understanding : tolerance.
Answer:
conflidsw

State whether the following statements are true or false giving reason:

Question 1.
The Principle of secularism ensures that there is no discrimination among people on the basis of their religion.
Answer:

The above statement is true.
In a secular state the people of all religions are treated equally by the state.
No religion is recognised as the official religion of the country.

Question 2.
Conflicts can end.
Answer:

The above statement is true.
We can resolve conflicts through compromise and understanding.
Conflicts can end if people make efforts to understand each other and show a spirit of tolerance.

Answer each of the following questions in one sentence:

Question 1.
When does disputes and conflicts arise among the people?
Answer:
Disputes and conflicts arise when there is lack of agreement in the opinions, ideas and views of the people.

Question 2.
How can conflicts end?
Answer:
Conflicts can end when people make effort to understand each other and show a spirit of tolerance.

Question 3.
How can we perform different roles?
Answer:
Each individual has several roles and responsibilities and duties of every role are well-defined. While playing these roles, we form bonds with many people. However, changes may occur in the part we play.

Answer the following questions in two or three sentences:

Question 1.
How will you ensure that you contribute – towards national unity?
Answer:

I will ensure that I respect all the people of the country.
I will develop a secular attitude and work towards national integration.

Give one example to illustrate the following points:

Question 1.
Diversity is our strength.
Answer:
We learn to respect each other’s way of life. We even adopt certain traditions from each other.
This helps to increase the feeling of unity in the society which helps us to face many natural and social calamities together.

Question 2.
We have accepted the principle of secularism.
Answer:

No religion is recognised as the religion of our country.
Every person has the freedom to worship as per their religion or the religion of their choice.

Question 3.
There are special provisions in the Constitution for the protection of religious and linguistic minorities.
Answer:

Minorities are free to protect and preserve their linguistic and cultural identities.
They are also free to bring about the development of their own communities through education.

Write a short note on:

Question 1.
Diversity – our strength.
Answer:

To live with different groups is to experience co-existence.
Co-existence helps to increase the level of understanding amongst the people.
It acquaints us with each other’s traditions, customs and ways of life.
We learn to respect each other’s way of life.
We even adopt certain traditions from others.
This helps to increase the feeling of unity in the society.
This social unity helps us to face many natural and social calamities together.

Question 2.
Regulation of society.
Answer:

In order that society functions smoothly, some rules are required.
In ancient times society was mostly regulated with the help of traditions.
But in modern times, along with traditions, laws are needed.
Law is different from traditions and customs.
The regulation of society through laws and traditions is carried out by different organizations and institutions.
The government bodies at the local level also play an important role in the process of regulation of society.

6th Std Civics Questions And Answers:

Our Life in Society Question Answer Class 6 Civics Chapter 1 Maharashtra Board

February 17, 2025February 16, 2025 by Bhagya

Balbharti Maharashtra State Board Class 6 Civics Solutions Chapter 1 Our Life in Society Notes, Textbook Exercise Important Questions and Answers.

Std 6 Civics Chapter 1 Question Answer Our Life in Society Maharashtra Board

Class 6 Civics Chapter 1 Our Life in Society Question Answer Maharashtra Board

Our Life in Society Class 6 Questions And Answers

1. Fill in the blanks:

Question 1.
Man felt the need for ______ for the day to day affairs of society to run smoothly.
Answer:
rules

Question 2.
_______ helps the development of people’s talents.
Answer:
Society

Question 3.
We all have some emotional and some _____ needs too.
Answer:
physical

2. Answer in one sentence:

Question 1.
What are the basic needs of man.
Answer:
Food, clothes, shelter, education and health 1 are the basic needs of man.

Question 2.
Whose company do we like?
Answer:
We like the company of our family members, relatives and friends.

Question 3.
What opportunities does society provide us with?
Answer:
Society provides the opportunities for expressing our thoughts and feelings and to develop our artistic and other talents.

3. What do you think? Answer in two or three sentences:

How is a society formed?
Answer:

A society is formed when people come together to achieve certain common objectives.
A society includes different groups, institutions and organisations.

Question 2.
Why is it necessary to set up a permanent system in society?
Answer:

In order to fulfil needs like food, clothing, shelter and security, society has to create a , permanent system.
Without a system, the day-to-day affairs of the society cannot be carried on.
A system is essential for the continued existence of the society.

Question 3.
What makes life in society more stable and organised?
Answer:

A Vast systen needs to be created includes factories to manufacture tools and equipment used for farming, a market for the goods produced, etc.
The existence of many such systems makes a society stable and organised.

Question 4.
If there were no social institutions what difficulties would we have faced?
Answer:

If there were no social institutions individual development would not have taken place at the fullest. It would be difficult to meet our physical and emotional needs.
There would be no social stability or security.

4. What would you do in the following situations?

Question 1.
Your friend has forgotten to bring something he needs in school.
Answer:
First, I would ask him if I could help. I will offer him the things which he needs. If I don’t have it I will inform the teacher and ensure that it reaches him. After all a friend in need is a friend indeed.

Question 2.
You meet a blind or otherwise handicapped person on the way.
Answer:
I will first ask if he needs help and extend a helping hand to him. I will help him cross the road and ensure that he reaches his destination safely.

Activities:

Meet a skilled tradesman who makes farmers’ tools. Make a list of all those who help the farmer in his work.
Visit a nearby bank and find out the different purposes for which the bank lends money.
Make a list of man’s basic needs and some additional needs.

Class 6 Civics Chapter 1 Our Life in Society Additional Important Questions and Answers

Fill in the blanks:

Question 1.
Variety of ______ leads to development of our skills and capabilities.
Answer:
occupations

Question 2.
Our life in society is ______.
Answer:
interdependent

Question 3.
Every person is bom with some qualities and _______.
Answer:
capabilities

Question 4.
Society helps in the development of our ________ capabilities and the power to think.
Answer:
emotional

Question 5.
A society is formed when people come together to achieve certain common ________.
Answer:
objectives

Question 6.
A ________ is essential for continued existence of the society.
Answer:
system

Question 7.
The existence of many systems makes a society _______.
Answer:
stable

Question 8.
Education and health related services and facilities allow us to live with _____.
Answer:
dignity

Question 9.
Our ________ is a part of the society.
Answer:
family

Name the following:

Question 1.
Any two physical needs of man:
Answer:
Food, clothing.

Question 2.
The people who provide companionship:
Answer:
Family members, friends.

Question 3.
Two basic needs:
Answer:
Education, health.

Question 4.
Two emotional needs of man:
Answer:
Security, appreciation.

Question 5.
Artists whose talents are developed in the society:
Answer:
Singers/ musicians.

Complete the analogy:

Question 1.
Food : Physical needs :: appreciation : __________.
Answer:
emotional need

Question 2.
Nomadic stage : No stability and security :: settled : ______.
Answer:
organised and security life way of life.

State whether the following statements are true or false giving reasons:

Question 1.
There are rules in society.
Answer:
TRUE

Living in society, man felt the need for rules to help in the smooth functioning of day-to¬day matters.
Rules have made our life organised and stable.

Question 2.
A society is a mob or crowd of people.
Answer:
FALSE
A society is formed when people come together to achieve certain common objectives

Answer in one sentence:

Question 1.
From which stage has man moved into a settled social life?
Answer:
Man has moved from a nomadic stage to a settled social life.

Question 2.
What was one of the main motivations for the creation of society?
Answer:
Man realised that living in a group provides him security and develops an organised way of life and this was one of the main motivation for creation of society.

Question 3.
What did rules give rise to?
Answer:
Rules gave rise to conventions, ethics, values, rules and laws.

Question 4.
Which facilities allow us to live with dignity?
Answer:
Education and health related services and facilities allow us to live with dignity.

Question 5.
In what way does society help us to develop our personality?
Answer:
Society helps in the development of our emotional capabilities and power to think. It also provides the opportunity for expressing our thoughts and feelings.

Answer in two or three sentences:

Question 1.
What would happen in the field of agriculture if there was no system to carry out various activities.
Answer:
(a) Various institutions are created to perform all functions related to agriculture which includes factories to manufacture farming tools and equipments, banks to provide loans to the farmers and a market for the agricultural products.

(b) If the above systems did not exist it would be difficult to carry out agricultural activities.

What would you do in the following situations ?

Question 1.
There is a melodious singer in your society, but he cannot nurture his talent due to lack of funds.
Answer:
I will encourage him to pursue his talent and will inform the elders in the society about his talent and request them to help j him. I can also encourage him to participate in the functions organised by the society and thereby showcase his talent.

Give reasons:

Question 1.
Our social life is interdependent.
Answer:

A variety of industries and occupations help to fulfil our needs.
This leads to development of our skills and capabilities.
Our basic needs are fulfilled in society.
We depend on each other for our emotional’ needs such as security, appreciation, praise, j support, etc.
Thus our life in society is interdependent.

Question 2.
The variety of occupations in the society help us in fulfilling our needs.
Answer:

A variety of industries and occupations help us to fulful our needs, for example, we need books for studying and paper for books.
That is why occupations like manufacturing papery printing books, binding, etc. also develop.
Thus the variety of occupations in the society. help us in fulfilling our needs.

6th Std Civics Questions And Answers:

Foreign Trade of India Question Answer Class 12 Economics Chapter 10 Maharashtra Board

February 15, 2025February 14, 2025 by Bhagya

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 10 Foreign Trade of India Textbook Exercise Questions and Answers.

Std 12 Economics Chapter 10 Question Answer Foreign Trade of India Maharashtra Board

Class 12 Economics Chapter 10 Foreign Trade of India Question Answer Maharashtra Board

Economics Class 12 Chapter 10 Question Answer Maharashtra Board

1. Choose the correct option:

Question 1.
Types of foreign trade
a) Import trade
b) Export trade
c) Entrepot trade
d) Internal trade
Options:
1) a and b
2) a, b and c
3) a, b, c and d
4) None of these
Answer:
2) a, b and c

Question 2.
Export trends of India’s foreign trade includes
a) Engineering goods
b) Gems and Jewellery
c) Textiles and ready-made garments
d) Gold
Options:
1) a and c
2) a, b and c
3) b, c and d
4) None of these
Answer:
2) a, b and c

Question 3.
Role of foreign trade is
a) To earn foreign exchange
b) To encourage investment
c) Lead to division of labour
d) Bring change in composition of exports
Options:
1) a and b
2) a, b and c
3) b and d
4) None of these
Answer:
2) a, b and c

2. Identify and explain the concepts from the given illustrations:

Question 1.
India purchased petroleum from Iran.
Answer:
Concept: Import trade
Explanation: Import trade means purchase of goods and services by one country from another country.

Question 2.
Maharashtra purchased wheat from Punjab.
Answer:
Concept: Internal/Home/Domestic trade Explanation : Internal trade is also known as home trade or domestic trade. This trade is within the country. It is between two or more states of the country.

Question 3.
England imported cotton from India, made readymade garments from it and sold them to Malaysia.
Answer:
Concept: Entrepot trade
Explanation : It means purchase of goods and services from one country and selling the same to another country.

Question 4.
Japan sells smart phones to Myanmar.
Answer:
Concept: Export trade
Explanation : It means sell of goods and services by one country to another country.

3. Distinguish between the following:

Question 1.
Internal trade and International trade.
Answer:

Internal / Domestic / Home trade	External / Foreign / International trade
(a) It means exchange of goods and services within the country.	(a) It means exchange of goods and services between two or more countries.
(b) The goods and services are produced and sold within the country.	(b) The goods and services are produced in one country and sold in other country.
(c) E.g. Kashmir apples sold in Maharashtra.	(c) E.g. Kashmir apples sold in Dubai.

Question 2.
Trends in imports and Trends in exports of foreign trade.
Answer:

Trends in imports	Trends in exports
(a) It means year wise numerical changes in imports of a country.	(a) It means year wise numerical changes in exports of a country.
(b) India’s major imported goods are – petroleum, gold, fertilizers, iron and steel, etc.	(b) India’s major exported goods are engineering goods, petroleum and chemical products, gems and jewellery, etc.
(c) Petroleum has highest import percent of 22.6 in 2016-17.	(c) Engineering goods has highest export percent 23.7 in 2016-17.

Question 3.
Balance of payments and Balance of trade.
Answer:

Balance in payment	Balance in trade
(a) It means systematic recording of all international economic transactions of that country during a year.	(a) It means the difference between the value of a country’s exports and imports in a year.
(b) It is a broad concept.	(b) It is narrow concept.

4. Answer the following:

Question 1.
Explain the concept of foreign trade and its types.
Answer:

Foreign trade is the exchange of goods and c services between two or more countries, Foreign trade is the trade across the j boundaries of a country.

There are three important types of foreign trade.

Import trade : It is a buying of goods and services from other country by home country. Excessive import can have a negative impact on home country. E.g. India buying petroleum from Iraq, Kuwait, etc.
Export trade : It is selling of goods and services by home country to another country.
Excessive export can have a positive impact on the home country. E.g. India exporting tea and spices to USA, China, etc.
Entrepot trade : It means buying of goods and services from one country and selling them to another country. E.g. England importing cotton from India, making readymade garments from it and selling them to Malaysia.

Question 2.
Explain any four features of composition of Indias foreign trade.
Answer:
There are many changes in India’s foreign trade from last seven decades (70 years)

Gross National Income : India’s foreign trade has great significance for its GNP. It increased upto 48.8% in the year 2016-17.
Change in composition of exports : After independence there was change in the composition of India’s export trade from primary products to manufactured goods.
Change in composition of imports :
After independence there was change in the composition of India’s import trade from consumer goods to capital goods.
Development of new ports : India’s foreign trade is handled mainly by Mumbai, Calcutta and Chennai ports. India has developed more new ports at Kandla, Cochin, Vishakhapatnam.
Oceanic trade : Most of India’s foreign trade is by sea. About 68% of India’s trade is by sea.

Question 3.
Explain the trend in India’s imports.
Answer:
India is importing various goods from other countries. Following are the major imported goods of India :

Petroleum : It has largest share in India’s import. In the year 2016-17, it has 22.6% share in India’s total import.
Gold: After petroleum, the second most imported item is gold. In the year 2011, ) India’s import of gold was $53.9 billion and in the year 2018-19 it declined upto $32.8 billion.
Fertilizers: The share of fertilizers in import expenditure declined from 4.1% in 1990-91 to only 1.3% in 2016-17.
Iron and Steel: In the year 2016-17, the share of iron and steel in India’s total import was 2.1%.

5. State with reasons whether you agree or disagree with the following statements:

Question 1.
During British nile, indigenous handicrafts suffered a severe blow.
Answer:
Yes, I do agree with this statement.

During the British rule India was exporting raw materials to England and was importing final goods from England.
Indian handicraft was unable to face competition with imported goods from England.
An imported goods were cheaper as compared to handicraft goods.
The demand for machine made cheap commodity had raised in Indian market.
That’s why Indian handicraft industries suffered during the British rule.

Question 2.
Trade is an engine of growth for an economy.
Answer:
Yes, I agree with this statement.

Trade permits a more efficient allocation of national resources.
Foreign trade provide foreign exchange which can be used to import modern machinery and technology from advanced countries.
Foreign trade encourages producers to produce more goods for export.
It leads to an increase in total investment in an economy.
Thus, we can say, trade is an engine to growth for an economy.

Question 3.
Foreign trade leads to division of labour and specialization at world level.
Answer:
Yes, I agree with this statement.

Some countries have abundant natural resources.
These countries should export raw material and import finished goods from countries which are advanced in skilled man power
Under specialisation specific work is given to the workers within a production process.
Specialisation can increase the productivity of a firm or economy.
Eg. Incase of car manufacturing company, some workers will design the cars, some workers will work on different section of assembly line, some workers will work on j testing cars, some workers will work on marketing of cars.

6. Observe the following table and answer the questions geven below it.

Direction of Indias imports
Maharashtra Board Class 12 Economics Solutions Chapter 10 Foreign Trade of India 1

Questions:

Question 1.
Which organisation has the least share in the direction of India’s imports in 2015-16?
Answer:
Eastern Europe has the least share in the direction of India’s import.

Question 2.
Which orgamsation has maximum share in India’s direction of imports in 1990-91?
Answer:
OECD [Organisation for Economic Co-operation and Development has maximum share in India’s direction of imports in 1990-91.

Question 3.
Expand the abbreviations of OECD and OPEC
Answer:
OECD : Organisation for Economic Co-operation and Development.
OPEC : Organisation of Petroleum Exporting Countries.

Question 4.
State your opinion regarding the direction of India’s imports from 1990-91 to 2015-16.
Answer:
In the year 1990-91, OECD (54.0%) and in the year 2015-16, Developing nations (43.2%) has the highest share in the direction of India’s imports. India should encourage industries those are producing import substitute goods,which will help to reduce import from developing nations and help to save foreign exchange.

Question 5.
How much is the percentage of increase in the imports of developing nations in 2015-16 as
compared to 1990-9 1?
Answer:
There is 24.6% increase in the imports of developing nations.

7. Answer in detail :

Question 1.
Explain the meaning and role of foreign trade.
Answer:
Trade means buying and selling of goods and services. Foreign trade means when goods and services are exchanged between two or more countries.
According to Wasserman and Hultman “International trade consists of transaction between residents of different countries”.
Role of foreign trade :

Brings reputation and helps earn goodwill : Exporting country can earn reputation and goodwill in the international market. Eg. Japan in electronic goods- Panasonic, Canon, Sony, Hitachi. Germany in Automobile – BMW, Audi, Mercedes- Benz, Volkswagen, Porsche. USA in food- McDonalds, KFC, USA in computers – Dell HP, IBM.
Division of labour and specialisation: It helps to increase the productivity of a firm or economy. Under specialisation specific work is given to the workers within a production process. Eg. Some workers will design cars, some workers will work on assembly lines, some workers will work on testing cars, some workers will work on marketing of cars.
To earn foreign exchange: Foreign trade is playing very important role in earning foreign exchange. This foreign exchange can be used to import advanced technology and machinery from developed countries.
Encourages investment : Foreign trade leads to an increase in total investment in an economy. The rise in investment help to produce more goods and services for export.
Availability of multiple choices : Due to availability of imported goods, it helps to improve standard of living of the people in the country.
Stability in price level : Foreign trade helps to control the changes in price level by keeping demand and supply position stable,
Helpful during natural calamities : Foreign trade enables a country to import food grains and medicines from other countries to help the affected people.
Optimum allocation and utlization of resources : Due to foreign trade those goods are produced which have demand in international market. There is maximum allocation and utlisation of resources to produce more goods and services for export.
Promotes world peace : Foreign trade is bringing countries closer which leads to better understanding, co-operation and integration.

Question 2.
Explain the recent trends in India’s exports.
Answer:
Export means selling of goods and services by home country to another country. Excessive export can have a positive impact on the home country.

(i) Engineering Goods : Engineering goods includes transport equipment, automobiles and auto components, machinery and instruments. India’s top export item is engineering goods accounting for 22.5% in India’s total export in 2014-15 and this share has increased upto 25% in the year 2017-18. India is exporting engineering goods to Sri Lanka, UAE and USA.

(ii) Petroleum Products : India’s refining capacity increased significantly since 2001-02 due to which India turned a net exporter of petroleum refinery products. In the year 2013-14 the share of petroleum products in total export was 20.1% and in the year 2016-17 it declined upto 11.7%.

(iii) Chemicals and chemical products:
It includes drugs (Medicines) and pharmaceuticals. This is one sector where India is highly competitive on both quality and pricing factor. India became global hub for pharma production. India is exporting its chemicals and chemical products to USA, China and Germany. The share of this item was 10.4% in 2014-15.

(iv) Gems and Jewellery: Gems and Jewellery plays an important role in earning the foreign exchange for India. In the year 2014¬15 the share of Gems and Jewellery was 13.3% in India’s total export and it declined upto 5.32% in the year 2018-19.

(v) Textiles and readymade garments :
India’s readymade garments have huge demand in the international market. India is exporting textiles to USA, China and Bangladesh. India is exporting readymade garments to USA, UAE and UK. In the year 2014-15 India’s export of textile and garments was 11.3% of total export of India and it has declined upto 6.3% in the year 2016-17.

Intext Questions

Try this : (Text Book Page No. 94)

Name the goods exported to and imported from India to China and Japan in recent years
Answer:

Goods exported by India	Goods imported by India
To China :	From China :
raw materials and industrial inputs like organic chemicals, mineral fuels, cotton, ores, plastic materials, etc.	electronic items, machinery, and plastic items.
To Japan :	From Japan :
fisheries products, wheat, tea, coffee, species and herbs.	mineral fuels, machinery and food items.

Find out: (Text Book Page No. 95)

Find the recent share of India’s foreign trade in Gross National Income.
Answer:
India’s foreign trade accounts for 48.8% of her Gross National Income.

Find out: (Text Book Page No. 97)

List the countries coming under OPEC and OECD.
Answer:
The countries coming under OPEC (Organisation of Petroleum Exporting Countries) are :
(a) Algeria, (b) Angola, (c) Congo, (d) Equatorial Guinea, (e) Gabon, (f) Iran, (g) Iraq, (h) Kuwait, (i) Libya, (j) Nigeria, (k) Saudi Arabia (1) United Arab Emirates, 0 Venezuela.

12th Std Economics Questions And Answers:

Supply Analysis Question Answer Class 12 Economics Chapter 4 Maharashtra Board

February 15, 2025February 14, 2025 by Bhagya

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 4 Supply Analysis Textbook Exercise Questions and Answers.

Std 12 Economics Chapter 4 Question Answer Supply Analysis Maharashtra Board

Class 12 Economics Chapter 4 Supply Analysis Question Answer Maharashtra Board

Economics Class 12 Chapter 4 Question Answer Maharashtra Board

1. Complete the following statements:

Question 1.
Price elasticity of demand on a linear demand curve at the X-axis is ……………
a) zero
b) one
c) infinity
d) less than one
Answer:
a) zero

Question 2.
Price elasticity of demand on a linear demand curve at the Y-axis is equal to
a) zero
b) one
c) infinity
d) greater than one
Answer:
c) infinity

Question 3.
Demand curve is parallel to X axis, in case of …………..
a) perfectly elastic demand
b) perfectly inelastic demand
c) relatively elastic demand
d) relatively inelastic demand
Answer:
a) perfectly elastic demand

Question 4.
When percentage change in quantity demanded is more than the percentage change in price, the demand curve is ………………..
a) flatter
b) steeper
c) rectangular
d) horizontal
Answer:
a) flatter

Question 5.
Ed = 0 in case of ………………
a) luxuries
b) normal goods
c) necessities
d) comforts
Answer:
c) necessities

2. Give et onomic terms:

Question 1.
Degree of responsiveness of quantity demanded o change in income only.
Answer:
Income elasticity

Question 2.
Degree of responsiveness of a change in quantity demanded of one commodity due to change in the price of another commodity.
Answer:
Cross elasticity

Question 3.
Degree of responsiveness of a change of quantity demanded of a good to a change in its price.
Answer:
Elasticity of demand

Question 4.
Elasticity resulting from infinite change in quantity demanded.
Answer:
Perfectly elastic demand

Question 5.
Elasticity resulting from a proportionate change in quantity demanded due to a proportionate change in price.
Answer:
Price elasticity

3. Complete the correlation:

1) Perfectly elastic demand: Ed = ∞ :: ……………. : Ed = 0
2) Rectangular hyperbola : ………………. : Steeper demand curve : Relatively inelastic demand.
3) Straight line demand curve : Linear demand curve:: …………….. non linear demand curve.
4) Pen and ink : …………….. :: Tea or Coffee: Substitutes.
5) Ratio method : Ed = $\frac{\% \Delta \mathbf{Q}}{\% \Delta \mathrm{P}}$ :: …………… : Ed = $\frac{\text { Lower segment }}{\text { Upper segment }}$
Answer:

Perfectly inelastic demand
Unitary elastic demand
Unitary elastic (convex to origin)
Complementary goods
Point or Geometric method

4. Assertion and Reasoning type questions:

Question 1.
Assertion (A) : Elasticity of demand explains that one variable is influenced by another variable.
Reasoning (R) : The concept of elasticity of demand indicates the effect of price and changes in other factors on demand.
Options: 1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
Answer:
3) Both (A) and (R) are True and (R) is the correct explanation of (A)

Question 2.
Assertion (A) : A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R) : Changes in consumers income leads to a change in the quantity demanded.
Options:
1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
Answer:
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)

Question 3.
Assertion (A) : Degree of price elasticity is less than one in case of relatively inelastic demand.
Reasoning (R): Change in demand is less then the change in price.
Options: 1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
Answer:
3) Both (A) and (R) are True and (R) is the correct explanation of (A)

5. Distinguish between:

Question 1.
Relatively elastic demand and Relatively inelastic demand.
Answer:
Relatively Elastic Demand

When percentage change in quantity demanded is greater than the percentage change in price then demand is said to be Relatively Elastic demand.
The numerical co-efficient is greater than one (e > 1).
Demand curve slopes flatter.
Example : luxury goods like LCD, TV, Car etc.

Relatively inelastic demand.

When percentage change in quantity demanded is less than percentage change in price then demand is said to be Relatively Inelastic demand.
The numerical co-efficient is less than one (e < 1).
Demand curve slopes steeper.
Example : foodgrains.

Question 2.
Perfectly elastic demand and Perfectly inelastic demand.
Answer:
Perfectly elastic demand :

When a small change in price brings an infinite change in quantity demanded, then demand is said to be Perfectly Elastic demand.
The numerical value of Perfectly Elastic demand is infinite i.e. e = ∞
The demand curve is horizontal straight line parallel to X-axis.
Such a demand is a myth or theoretical.

Perfectly inelastic demand.

When a change in price does not bring any change in quantity demanded, then demand
is said to be Perfectly Inelastic demand.
The numerical value of Perfectly Inelastic demand is zero i.e. e = 0.
The demand curve is a vertical straight line parallel to Y—axis.
Such demand is found in case of life saving drugs, salt, etc.

6. Answer the following questions:

Question 1.
Explain the factors influencing elasticity of demand.
Answer:
The concept of Price Elasticity was developed i by great neo-classical economist Dr. Alfred \ Marshall in the year 1890.
According to Dr. Alfred Marshall, “The elasticity or responsiveness of demand in a market is great or small, according to the amount demanded which increases much or little for a given fall in price, and diminishes much or little for a given rise in price. ”
Elasticity of demand in fact refers to the £ degree of responsiveness of the quantity demanded of a commodity to change in the variable on which demand depends.

Question 2.
Explain the total outlay method of measuring elasticity of demand?
Answer:
Total Outlay Method : This method was introduced by Dr. Alfred Marshall. The limitation of this method is that in this method unlike ratio method, the exact numerical value of the elasticity of demand cannot be determined. According, to this method, the elasticity of demand is measured on the basis of expenditure incurred by consumer when the price of a commodity changes.

Total outlay or total expenditure can be calculated by multiplying the price with the quantity demanded (Price x Quantity demand = Total Expenditure). Depending upon the kind of change in total outlay, whether it increases, or decreases, or remain constant with the change in price we will be able to decide the type of elasticity. This can be explained with the following example:-
Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 11

If the total outlay remains the same with a rise or fall in price then the demand is said to be unitary (e = 1) elastic.
If the total outlay decreases with a rise in price and increases with a fall in price, the elasticity of demand is greater than one or Relatively Elastic e > 1.
If the total outlay increases with a rise in price and decreases with a fall in price, then elasticity is less than one or relatively inelastic, e < 1.

Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 12

Question 3.
Explain importance of elasticity of demand.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 10

Nature of Commodity : By nature, commodities are classified as necessaries, comforts and luxuries. Normally demand for j necessaries like food grains are relatively inelastic and for comforts and luxuries like diamond, perfumes, etc is relatively elastic.
Availability of Substitutes : The larger the number of substitutes available for a commodity, the greater would be the elasticity. Demand for products like soap, soft drinks, detergents, tooth paste, etc. have many substitute so demand is elastic, ‘j However, salt, garlic, onions have no substitute so demand is inelastic.
Durability of the Commodity : The demand for durable goods like T.V., car, fridge, etc is relatively inelastic in the short run and elastic in the long run. Whereas the demand for perishable goods is relatively inelastic.
Uses of Commodity : Single use commodities have less elastic demand and multi-use goods like coal, electricity, sugar, etc. have relatively elastic demand.
Range of Price : The demand for commodities which are highly priced and will have a inelastic demand like AC, car, etc. Even very low priced goods have inelastic demand.
Consumer’s Income : Generally if income is very high, the demand for over allcommodities tends to be relatively inelastic. The demand pattern of the rich people is rarely affected even when there is significant price change.
Influence of Habits and Customs : When a person is habituated to consume a certain commodity, the demand will be inelastic for that commodity. E.g. demand for cigarettes to a chain smoker is inelastic.
Time Period : The demand for goods is less elastic in the short period and more elastic in the long period. This is because (1) in the long period consumer are better informed about their price (2) habits of consumer’s change in the long run (3) durable goods get worn out in the long period.
Proportion of Income Spend : If consumer spends a very small proportion of his income on a commodity, the demand for it will be relatively inelastic & vice-versa. For e.g. demand for salt, newspaper, pins are inelastic.
Urgency and Postponement : If the demand for a commodity is urgent then demand for it will be inelastic. E.g. demand for medicine for a patient. Whereas, if the demand for a commodity can be postponed it will have elastic demand.
Complementary Goods : Complementary goods are those goods which are demanded jointly such as car and petrol, mobile and sim cards, etc. Demand for petrol will be inelastic as car cannot run without petrol.

7. Observe the following figure and answer the questions:

Question 1.
Identify and define the degrees of elasticity of demand from the following demand curves.
Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 5
Answer:

Concept: Perfectly Inelastic demand (Ed = 0) Explanation : When change in price has no effect on the quantity demanded of that commodity, then it is called as perfectly inelastic demand. Demand curve ‘DD’ is a vertical straight line parallel to ‘Y’ – axis.

Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 7
Concept: Perfectly Elastic demand (Ed = ∞) (infinity)
Explanation: When a change in price leads to infinite change in quantity demanded of a commodity then it is called as perfectly) (d) elastic demand.
Demand curve is horizontal straight line ( parallel to ‘X’ – axis.
Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 8
Concept: Ed = 1 Unitary elastic demand Explanation : When proportionate or percentage change in quantity demanded is exactly equal to proportionate or percentage change in price, then it is called as Unitary Elastic demand. Demand curve is called as rectangular hyperbola.

Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 9
Concept: Relatively Elastic Demand (Ed > 1)
Explanation : When proportionate or percentage change in quantity demanded is more than proportionate change it its price, then it is called as Relatively Elastic Demand. Demand curve is called as flatter curve.

Question 2.
In the following diagram AE is the linear demand curve of a commodity. On the basis of the given diagram state whether the following statements are True or False. Give reasons to your answer.
Maharashtra Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand 13
1) Demand at point ‘C’ is relatively elastic demand.
2) Demand at point ‘B’ is unitaiy elastic demand.
3) Demand at point ‘D’ is perfectly inelastic demand.
4) Demand at point ‘A’ is perfectly elastic demand.
Answer:

Demand at point ‘C’ is relatively elastic demand.
False, it is relatively inelastic demand.
False, it is relatively elastic demand.
False, it is unitary elastic demand.
True, it is perfectly elastic Ed = ∞

12th Std Economics Questions And Answers:

Demand Analysis Question Answer Class 12 Economics Chapter 3A Maharashtra Board

February 15, 2025February 14, 2025 by Bhagya

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 3A Demand Analysis Textbook Exercise Questions and Answers.

Std 12 Economics Chapter 3A Question Answer Demand Analysis Maharashtra Board

Class 12 Economics Chapter 3A Demand Analysis Question Answer Maharashtra Board

Economics Class 12 Chapter 3A Question Answer Maharashtra Board

1. Complete the following statements:

Question 1.
The relationship between demand for goods and price of its substitute is ……………
(a) direct
(b) inverse
(c) no effect
(d) can be direct and inverse
Answer:
(a) direct

Question 2.
The relationship between income and demand for inferior goods is …………….
(a) direct
(b) inverse
(c) no effect
(d) can be direct and inverse
Answer:
(b) inverse

Question 3.
Symbolically, the functional relationship between Demand and Price can be expressed as …………….
(a) D = f(Px)
(b) Dx = f (P2)
(c) D = f(y)
(d) D = f(T)
Answer:
(a) D = f(Px)

Question 4.
When less units are demanded at high price it shows ……………..
(a) increase in demand
(b) expansion of demand
(c) decrease in demand
(d) contraction in demand
Answer:
(d) contraction in demand

2. Give economic terms

1. A situation where more quantity is demand at lower price…………….
2. Graphical representation of demand schedule……………….
3. A commodity which can be put to several uses……………….
4. More quantity is demanded due to changes in the factors determining demand other than price…………..
5. A desire which is backed by willingness to purchase and ability to pay……………
Answers:
(1) Expansion or Extension of Demand
(2) Demand Curve
(3) Composite Demand
(4) Increase in Demand
(5) Demand

3. Distinguish between:

Question 1.
Desire and Demand
Answer:

Desire	Demand
1. Desire is a mere wish for something. For example desire for a chartered plane.	1. Demand refers to desire backed by ability and willingness to pay for a particular commodity.
2. Desire has no limits.	2. Demand is limited by ability to pay and willingness to pay.
3. Desire is not related or dependent on price.	3. Demand is inversely related to price.
4. Desire is wider in scope as it includes demand.	4. Demand is narrow in scope as it is a part of desire.
5. Example : Desire of a beggar to own a car.	5. Example: Demand for a BMW Car by business man who has ability and willingness to pay.

Question 2.
Expansion of demand and Contraction of demand
Answer:

Expansion of demand	Contraction of demand
1. Expansion of demand refers to a rise in demand only due to a fall in price.	1. Contraction of demand refers to a fall in the demand due to a rise in price.
2. Expansion of demand takes place solely due to falling in price. All other factors affecting demand remain constant.	2. Contraction of demand takes place solely due to a rise in price. All other factors affecting demand remain constant.
3. Expansion of demand is shown by a downward movement on the same demand curve.	3. Contraction of demand is shown by an upward movement on the same demand curve.

Question 3.
Increase in demand and Decrease in demand
Answer:

Increase in Demand	Decrease in Demand
(a) Increase in demand refers to a rise in demand due to changes in other factors, price remaining constant.	(a) Decrease in demand refers to fall in demand due to changes in other factors, price remaining constant.
(b) Increase in demand occurs when more is purchased at the same price.	(b) Decrease in demand occurs when less is purchased at the same price.

4. State with reasons whether you agree or disagree with the following statements:

Question 1.
Demand curve slopes downward from left to right.
Answer:
Yes, I agree with this statement.

Reasons justifying downwards sloping demand curve are as follows:

The law of DiminishingMarginal Utility: Marginal utility goes on diminishing when there is increase in the stock of commodity and consumer tends to buy more when price falls and vice-versa.
Income Effects : Whenever there is a fall in price of a commodity, purchasing power of a consumer gets increased, which enables him to buy more of that commodity.
Substitution Effect : When price of commodity rises consumer tends to buy more of cheaper substitute goods and less of the commodity whose price has increased.
Multi-purpose Uses : When a commodity can be used for satisfying multiple needs, its demand will rise with a fall in its price and vice-versa.
New Consumers : When there is fall in price of a commodity, a new consumer class buy the commodity as they can afford it. Thus total demand for commodity increases with fall in price.

Question 2.
Price is the only determinant of demand.
OR
Price is the only factor that affects demand for a commodity
Answer:
No, I do not agree with the given statement. This is because there are various factors that determine demand other than price.

Reason:
The following are a few determinants:
Income of the consumer – Change in the income of the consumer also affects the market demand for goods. The effect of the change in income on the market demand depends on the type of the good.

Type of Good – The market demand for normal goods shares a positive relationship with the consumer’s income. The market demand for inferior goods (such as coarse cereals) has a negative relationship with the consumer’s income.

The market demand for Giffen goods also has a negative relationship with the income.
Consumer’s tastes and preferences – Consumers’ tastes and preferences highly influence the demand for goods. Other things being constant, if all consumers prefer a commodity over another, then the market demand for that commodity increases and vice versa.

Population size – The market demand for a commodity is also affected by the population size. Other things being equal, an increase in the population size increases the market demand for a commodity and vice-versa. This is because with the change in population size, the number of consumers in the market changes.

Question 3.
When price of Giffen goods fall, the demand for it increases.
Answer:
I Disagree with the statement.
Reason:
When price of Giffen goods falls, the demand for its decreases.
Inferior goods or low-quality goods are those goods whose demand does not rise even if their price falls. At times, demand decreases when the price of such commodities fall. Sir Robert Giffen observed this behaviour in England in relation to bread declined, people did not buy more because of an increase in their real income or purchasing power. They preferred to buy superior-good like meat. This is known as Giffen’s paradox.

5. Observe the following table and answer the following questions:

Question 1.
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 1
a) Complete the market demand schedule.
Answer:

b) Draw market demand carve based on above market demand schedule.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 3

Question 2.
Observe the given diagram and answer the following questions:
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 4
1) Rightward shift in demand curve …………….
2) Leftward shift in demand curve …………….
3) Price remains …………….
4) Increase and decrease in demand comes under …………….
Answer:

Increase in demand (D₁D₁).
Decrease in demand (D₂D₂).
Constant.
Change in demand.

Question 3.
Explain the diagrams:
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 5
1) Diagram A represents ……………. in demand
Answer:
Expansion or Extension.

2) In diagram A movement of demand curve is in ………………… direction
Answer:
Downward.

Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 6
1) Diagram B represents …………………… in demand
Answer:
Constraction.

2) In diagram B movement of demand curve is in …………………… direction
Answer:
Upward.

6. Answer in detail :

Question 1.
State and explain the law of demand with exceptions.
Answer:
(A) Introduction : The law of demand is one of the important law of consumption which explain the functional relationship between price and quantity demanded of a commodity. Prof. Alfred Marshall in his book ‘Principle of Economics’ which was published in 1890, has explained the consumer’s behaviour as follows:

(B) Statement of the Law : According to Prof. Alfred Marshall, “Other things being equal, higher the price of a commodity, smaller is the quantity demanded and lower the price of a commodity, larger is the quantity demanded.
In other words, other things remaining constant, demand varies inversely with price. Marshall’s law of demand describes the functional relationship between demand and price. It can be presented as:
D_x = f(P_x)
where D = Demand for Commodity
x = Commodity
f = function
P_x = Price of a commodity
(C) Assumption :

Prices of Substitute goods remain constant : The price of substitute goods should remain unchanged, as change in the price will affect the demand for the commodity.
Prices of Complementary goods s remains constant : A change in the price j of one good will affect the demand for other, thus the prices of complementary goods should remain unchanged.
No Expectation about future changes jj in prices: The consumers do not expect any \ significance rise or fall in the future prices.
No change in Taxation Policy : The level of direct and indirect tax imposed by the government on the income and goods should remain constant.
Constant Level of Income : Consumer’s income must remain unchanged because if income increases, consumer may buy more even at a higher price not following the law of demand.
No Change in Tastes, Habits, Preference, Fashions, etc. : If the taste changes then the consumers preference will also change which will affect the demand. When commodities are out of fashion, then demand will be low even at a lower price.

(D) Explanation of the law of Demand :
The law of demand is explained with the help of the following demand schedule and diagram:
Demand Schedule

Price of Commodity ‘X’ (in Rs.)	Quantity Demanded of Commodity ‘X’ (in kgs)
50	1
40	2
30	3
20	4
10	5

From the above demand schedule we observe that at higher price of ₹ 50 per kg, quantity demanded is 1 kg. When price fall from ₹ 50 to ₹ 40, quantity demanded rises from 1 kg to 2 kg. Similarly, at price ₹ 30 quantity demanded is 3kg and when price falls from ₹ 20 to ₹ 10 quantity demanded rises from 4 kg to 5 kg. This shows an inverse relationship between price and demand.
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 7
In the above diagram X-axis represent quantity demanded and Y-axis represent the price of the commodity. The demand curve DD slopes downwards from left to right ] showing an inverse relationship between price and demand. It has a negative slope.

(E) Exceptions to the Law of Demand :
No, I do not agree with this statement.
There are some important cases in which the demand for the commodity is greater when price rises and smaller when price falls. Such cases are called exceptions to the law of Demand. In such case, demand curve slopes upwards from left to right and it has a positive slope.

Prestige Goods : Rich people buy more expensive goods like gold, diamonds, etc., even when there prices are high to maintain their status.
Giffen Paradox : Demand for low quality goods and inferior goods decrease even if there prices falls.
According to Sir Robert Giffen when price of bread declined, people did not buy more because of increase in their real income and they prefer to buy superior goods like meat.
Speculation : People are tend to buy more commodities if they expect prices to rise further. E.g. prices of oil, sugar, etc., are expected to rise before Diwali, so people buy more of these commodities even at higher price.
Habitual goods : Due to habit of
consumption, certain goods like tea is purchased in required quantities even at higher price.
Ignorance : Sometimes people completely ignore the price of commodity and buy more of that commodity ignoring higher price.
Price Illusion: Consumer feels that good at higher price are of better quality, therefore demand for such goods are higher even at rise in their prices.

Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 8

Question 2.
Explain in detail the determinants of demand.
Answer:
Meaning of Demand : Demand refers to a desire or want for goods. Desire is the willingness to have some commodity which is backed by willingness and ability to pay.
Definition : According to Benham, “The demand for anything at a given price is the amount of it, which will be bought per unit of time at that price.

Features of Demand :

Demand is a relative concept.
Demand is essentially expressed with reference to time and price. ?

Determinants of Demand :

Price of Complementary Goods : Demand changes with changes in price of complementary goods like car and petrol, etc.
Advertisement : Effective advertisement and sales promotion will lead to greater demand of product. E.g. cosmetics, toothbrush, etc.
Price : Demand for a commodity is mainly influenced by its price. Normally at a higher price the demand is less and at a lower price it is more. Thus, demand varies inversely with price of a commodity.
Taste, Habits and Fashions : Habits influence market demand. If people habituated to the consumption of certain goods they will not give up such habits easily. E.g. demand for liquor, cigarettes, etc. Sometimes fashion change attitude and preference of people which in turn changes market demand.
Income: Income determines the purchasing power. Rise in income will lead to a rise in demand of a commodity and fall in income will lead to a fall in demand of a commodity.
Other Factors : (a) Climatic condition, (b) Changes in technology, (c) Government policy, (d) Customs and traditions, etc.
Nature of Product: Under necessary and unavailable circumstances the demand of a commodity will continue to be same irrespective of the corresponding price. E.g. medicine to control blood-pressure.
Level of Taxation : There would be increase in price of goods and services due to high rates of taxes which results in a decrease in demand and vice-versa.
Expectation about the Future Prices : If the consumer expect a rise in price in the near future they will demand more at present price. Similarly, when they expect price to fall, then they will buy less at present prices.
Price of Substitute Goods : Demand for cheaper substitute goods will rise when there is fall in price of such goods. E.g. when sugar price rises, then the demand for jaggery will rise.
Size of Population: Demand for commodity depends upon size and composition of population like age structure, gender ratio which influence demand for certain goods. E.g. larger the child population, more will be the demand for toys, chocolates, etc.

Intext Questions

Activity : (Textbook Page no. 17)

Identify the concepts :

(i) A poor person wants to have a car.
Answer:
Desire : because he does not have ability and capacity to pay the price for a car.

(ii) A rich person bought a car.
Answer:
Demand : because a rich person has a desire as well as capacity to pay a car.

Activity : (Textbook Page no. 19)

Prepare a monthly demand schedule of your family for various commodities. For example, vegetables, fruits, medicines, etc.
Answer:
[Students should do this activity by themselves]

Activity : (Textbook Page no. 19)

Complete the following hypothetical demand schedule.
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 9
Answer:

Activity : (Textbook Page no. 20)

Complete the table.
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 11

Answer:

Activity : (Textbook Page no. 22)

Draw a demand curve from the following demand schedule :
Maharashtra Board Class 12 Economics Solutions Chapter 3A Demand Analysis 14
Answer:

Activity : (Textbook Page no. 23)

Find out : Examples of the given exceptions to the law of demand.

(1) Prestigious Goods
Answer:
Car, Gold, Diamond, etc.

(2) Habitual Goods
Answer:
Cigarette, Tea, Drugs, Chocolates, etc.

(3) Branded Goods
Answer:
Godrej Lockers, Levis Jeans, Sony T.V, etc.

12th Std Economics Questions And Answers:

Forms of Market Question Answer Class 12 Economics Chapter 5 Maharashtra Board

February 15, 2025February 14, 2025 by Bhagya

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 5 Forms of Market Textbook Exercise Questions and Answers.

Std 12 Economics Chapter 5 Question Answer Forms of Market Maharashtra Board

Class 12 Economics Chapter 5 Forms of Market Question Answer Maharashtra Board

Economics Class 12 Chapter 5 Question Answer Maharashtra Board

1. Choose the correct option:

Question 1.
In an economic sense, the market includes the following activities
a) The place where goods are sold and purchased.
b) An arrangement through which buyers and sellers come in close contact with each other directly or indirectly.
c) A shop where goods are sold.
d) All of the above.
Options :
1) a and b
2) b and c
3) a, b and c
4) only b
Answer:
4) only b

Question 2.
Classification of markets on the basis of place
a) Local market, National market, International market
b) Very short period market, Local market, National market.
c) Short period market, National market, International market.
d) Local market, National market, Short period market.
Options :
1) a, b and c
2) b. c and d
3) only a
4) a and d
Answers:
3) only a

Question 3.
Homogeneous product is a feature of this market.
a) Monopoly
b) Monopolistic competition
c) Perfect competition
d) Oligopoly
Options:
1) c and d
2) a, b and c
3) a, c and d
4) only c
Answer:
4) only c

Question 4.
Under Perfect competition, sellers are
a) Price makers
b) Price takers
c) Price discriminators
d) None of these
Oplions:
1) a, b and c
2) only b
3) only c
4) a and c
Answers:
2) only b

2. Give economic terms:

1) The market where there are few sellers.
2) The point where demand and supply curve intersect.
3) The cost incurred by the firm to promote sales.
4) Number of firms producing identical product.
5) Charging different prices to different consumers for the same product or services.
Answers:

Oligopoly
Equilibrium point
Selling cost
Homogeneous
Discriminating monopoly

3. Complete the Correlation:

1) Perfect competition : Free entry and exit :: ……………. : Barriers to entry.
2) Price taker …………….:: Price maker:: Monopoly.
3) Single price : Perfect competition :: Discriminated prices : …………….
Answers:

Monopoly
Perfect competition
Monopoly

4. Find the odd word out:

1) Selling cost : Free gifts, Advertisement hoardings. Window displays. Patents.
2) Market sructure on the basis of competition : Monopoly. Oligopoly. Very Short Period market. Perfect competition.
3) Features of monopoly : Price maker, Entry barriers, Many sellers. Lack of substitutes.
4) Legal monopoly : Patent. OPEC. Copyright. Trade mark.
Answers:

Free gift
Very short period
Many sellers
OPEC

5. Answer the following:

Question 1.
Explain the features of Oligopoly.
Answer:
The term Oligopoly is derived from the Greek words ‘Oligo’ which means few and ‘Poly’ which means sellers. Hence, following are its features –

1. Many buyers and few sellers : There are many buyers and a few sellers or firms (may be five or six) who dominate the market and have major control over the price of a product.

2. Interdependence : Since the number of firms are less, any change in price, output, product etc. by one firm will affect the rival firms and will force them to change their price, output, etc. E.g. In case of Coke and Pepsi in soft drink market.

3. Selling cost or advertising : Each firm in order to sell more of its product takes aggressive steps to advertise or through free samples. This helps them to capture larger sales.

4. Barrier to entry : The firm can easily exit from the industry whenever it wants, but to enter a new industry it has certain entry barriers like government license, patent right, etc.

5. Uncertainty : There is a great uncertainty in this market if the rival firms join hands and may try to fight each other.

6. Lack of Uniformity : The firms may produce either homogeneous or differentiated products. Eg. In automobile industry, Maruti, Indica are examples of differentiated product but cooking gas of Bharat Petroleum and Hindustan Petroleum are examples of homogeneous product or pure oligopoly.

Question 2.
Explain the types of Monopoly.
Answer:
There are different types of monopoly as analysed below:

(1) Natural Monopoly : A natural monopoly arises when a particular type of natural resource is located in a particular region like petrol or crude oil in Gulf countries. Also natural advantages such as good location, business reputation, age – old establishment s etc., confer natural monopoly. Similarly, many professional skills, natural talents give monopoly power. E.g. A singer or actor has monopoly of his skill, talent.

(2) Legal Monopoly : Legal monopolies are those monopolies which are recognised by law. Legal protection granted by the Government in the form of trade mark, copy rights, license etc., give monopoly power to j the firms. Here the potential competitors are j not allowed to copy the product registered under the given brand names, patents or trade marks according to the law.

(3) Joint Monopoly or Voluntary Monopoly : This monopoly arises through mutual agreement and business combinations like the formation of cartels, syndicate, trust etc. For e.g. Oil producing nations have come together and formed a Cartel OPEC Organisation of Petroleum Exporting Countries.

(4) Simple Monopoly : A simple monopoly firm charges a uniform price for its product to all the buyers.

(5) Discriminating Monopoly : A discriminating monopoly firm charges different prices for the same product to ) different buyers. E.g. a doctor, a teacher, a lawyer, etc., charges different fees from the people. The practice of charging different j prices from different buyers is called “Price discrimination.”

(6) Private Monopoly : When an individual or a private firm enjoys the monopoly of manufacturing and supplying a particular product, it is called private monopoly. The main aim of private monopolist is profit maximisation.

(7) Public Monopoly : When a field of production is solely owned, controlled and operated by the government, it is regarded as public monopoly. Eg. Public utility service like Railways, Electricity, Water Supply etc. Since these monopolies are service motivated and welfare oriented they are also called welfare monopolies.

6. Observe the table and answer the questions:

Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 1

Question 1.
Fill in the blanks in the above schedule.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 2

Question 2.
Derive the equilibrium price from the above schedule with the help of a suitable diagram.
Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 3
Answer:
In the diagram, equilibrium price is ₹ 30/- because at this point dd curve insects SS curve at point ‘P’. At this point DD is 300 doz of bananas and sellers are ready to sell 300 doz at price ₹ 3.

7. Answer in detail:

Question 1.
Explain the meaning of Monopolistic competition with its features.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 4
(1) Fairly large number of Sellers : There are large number of sellers selling closely related, but not identical products. There is tough competition among sellers. An individual seller supply is just a small part) of the total supply, so he has limited degree l of control over market supply and price. Each firm (seller) can formulate its own price and output policy independently.

(2) Fairly large number of Buyers: There are large numbers of buyers in a monopolistic competition market. Each buyer enjoys his preference over a particular brand and chooses to buy a specific brand of product. Hence, the buying is by choice and not by chance.

(3) Product Differentiation : The most distinguishing feature of monopolistic competition is that the product produced by different firms are not identical, they are slightly different from each other but they are close substitutes. The product differentiation can be done in different ways like may be in the form of brand names say Raymonds. It can be differentiated in terms of colour, size, design, etc., say soap, mobiles etc., or through sales technique. For e.g. cars, two wheelers, air conditioners, etc.

(4) Free Entry of Firms: A firm is free to enter the market as there are no entry barriers. Similarly there are no restrictions if the firm wants to quit the market. Freedom of entry leads to occurrence of only normal profit in the long run.

(5) Selling Cost : One of the special features of monopolistic competition is the selling cost. Selling costs are those costs, which are incurred by firms to create more and more demand for its products through advertisement, salesmanship, free samples, exhibitions, etc.

(6) Downward Sloping Elastic Demand Curve : The demand curve faced by each firm is downward sloping and comparatively more elastic. It implies that an individual firm can sell more only by reducing the price.
Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 5

(7) Concept of Group : Under monopolistic competition, Prof. E. H. Chamberlin introduced the concept of group in place of Marshallian concept of industry. Industry means a number of firms producing identical products. A group means a number of firms producing differentiated product, which are close substitutes.

Question 2.
Explain the meaning of Perfect competition with its features.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 6
(1) Perfect Mobility of Factors of Production : Factors of production that is land, labour, capital are perfectly free to move from one firm to another or from one industry to another from one region to another or from one occupation to another. This ensures freedom of entry and exit for individuals and firms.

(2) Single / Uniform Price : There exists a single price for homogeneous product in the entire market at a given point of time. The price is determined by forces of demand and supply.

(3) Large Numbers of ellers : There are many sellers in this market. The number of sellers (firms) are so large that a single seller cannot influence the market price nor the total output in the market (Industry). The contribution of one seller is insignificant and microscopic. The price in the market is determined by the forces of market demand and market supply. Hence, a firm or seller is a ‘price taker’ and not a ‘price maker.’
Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 7

(4) Homogeneous Product : The products produced by all the firms in the industry are identical and are perfect substitute to each other. The products are identical in shape, size, colour, etc. and hence uniform price rules the market for the product.

(5) Large Number of Buyers : There are large number of buyers in the market. One individual buyer’s demand is only a small fraction of total market demand so he is not in a position to influence the price. He is a price taker.

(6) No Government Intervention : It is assumed that the government does not interfere with the working of market economy. There are no tariffs, subsidies, licensing policy or other government interventions. This non – intervention of government is necessary to permit free entry of firms and automatic adjustment of demand and supply. In short, laissez faire policy prevails under perfect

(7) Perfect Knowledge : There is perfect knowledge on the part of buyers and sellers regarding the market conditions especially regarding market price. As a result no buyer will pay a higher price than the market price and no seller will charge a lower price than the market price. So a single price would prevail for a commodity in the entire market.

(8) Free Entry and Free Exit : There is freedom for new firms or sellers to enter the industry or market. There are no legal, j economic or any other type of restrictions or; barriers for new firms to enter the industry or an existing firms to quit the industry, Entry of new firm usually takes place j when existing firms enjoy abnormal profit. Similarly, existing firms quit the industry when they face losses.

(9) No Transport Cost: It is assumed that all firms are close to the market and hence there is no transport cost. If the transport cost are added to the price of product then the homogeneous commodity will have different prices depending upon the distance from the place of supply to the market.

Question 1.
Do you know? (Textbook Page 50)
What is monopsony?
Answer:
Monopsony is opposite of monopoly market but it is rarely found in reality.
In monopsony, there are large number of sellers but buyer is only one. So buyer has complete control over the price in the market. He can bargain with the sellers and fix the price at his terms.

Find out (Textbook Page 50)

What are the types of monopoly of the following products or services and give reason.
(1) Tea in Assam, (2) Atomic energy, (3) Logo of a commercial bank
Answer:

Product / Service	Types of Monopoly	Reason due to
Tea in Assam	Natural Monopoly	suitable climatic conditions and hilly regions of Assam.
Atomic energy	Public Monopoly	Atomic energy is owned and controlled by the government.
Logo of a Commercial Bank	Public Monopoly	Commercial Banks are owned and controlled by the government.

Find out (Textbook Page 51)

Find the close substitutes for the following products:
Answer:

	Products	Substitutes
(a)	Gemini Oil	Saffola Oil
(b)	Colgate Toothpaste	Meswak Toothpaste
(c)	Red Label Tea	Girnar Tea
(d)	Bru Cafe	Nescafe
(e)	Activa Two-wheeler	Aviator – Two-wheeler

Maharashtra Board Class 12 Economics Solutions Chapter 5 Forms of Market 9

12th Std Economics Questions And Answers:

Utility Analysis Question Answer Class 12 Economics Chapter 2 Maharashtra Board

February 15, 2025February 14, 2025 by Bhagya

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 2 Utility Analysis Textbook Exercise Questions and Answers.

Std 12 Economics Chapter 2 Question Answer Utility Analysis Maharashtra Board

Class 12 Economics Chapter 2 Utility Analysis Question Answer Maharashtra Board

Economics Class 12 Chapter 2 Question Answer Maharashtra Board

1. Complete the following statements by choosing the correct alternatives.

Question 1.
In the law of diminishing marginal utility, Alfred Marshall assumes that marginal utility of money …………..
(a) increases
(b) remains constant
(c) decreases
(d) rises and then falls
Answer:
(b) remains constant

Question 2.
As per the law of diminishing marginal utility, measurement of utility is assumed to be ……………
(a) ordinal
(b) cardinal
(c) both ordinal and cardinal
(d) none of the above
Answer:
(b) cardinal

Question 3.
MU of the commodity becomes negative when TU of a commodity is ………….
(a) rising
(b) constant
(c) falling
(d) zero
Answer:
(c) falling

Question 4.
Point of satiety means ……………….
(a) TU is rising and MU is falling
(b) TU is falling and MU is negative
(c) TU is maximum and MU is zero
(d) MU is falling and TU is rising
Answer:
(c) TU is maximum and MU is zero

Question 5.
When MU is falling, TU is ………………
(a) rising
(b) falling
(c) not changing
(d) maximum
Answer:
(a) rising

2. Choose the correct option:

Question 1.

Group ‘A’		Group ‘B’
1. Time utility	(a)	Transportation
2. Place utility	(b)	Blood bank
3. Service utility	(c)	Mobile phone
4. Knowledge utility	(d)	Doctor
	(e)	Music

Options :
(1) 1 – d, 2 – b, 3 – a, 4 – c.
(2) 1 – b, 2 – a, 3 – d, 4 – c.
(3) 1 – a, 2 – b, 3 – e, 4 – d.
(4) 1 – b, 2 – c, 3 – d, 4 – e.
Answer:
(2) 1 – b, 2 – a, 3 – d, 4 – c.

Question 2.
Statments Indicating consumer equilibrium:
a) MU is greater than price
b) MU is equal to price
c) MU is less than price
d) Price is less than one
Options:
I) a and b
II) a, b,c and d
Ill) a,b and c
IV) only b
Answer:
IV) only b

3. Identify and explain the concept from the given illustrations.

Question 1.
Salma purchased sweater for her father in winter season.
Answer:
Concept: Time utility.
Explanation : When utility of a commodity increases during a particular season it is called time utility.
Utility of sweater increases in winter season.

Question 2.
Nilesh purchased ornaments for his sister.
Answer:
Concept: Possession utility.
Explanation : When the ownership of a product changes from seller to buyer, it is called possession utility.
In the given example, ornaments are purchased by Nilesh for his sister. Ownership of a product changed, so it is an example of possession utility.

Question 3.
Kavita consumed five units of oranges one after the other.
Answer:
Concept: Successive consumption.
Explanation : To experience the law of DMU, there should be consumption of units of commodity, without time gap. It is called successive consumption.
The given example explains that five oranges are consumed by Kavita one after another without interval of time.

Question 4.
Bhushan refused to eat fifth chapati after eating four chapatis.
Answer:
Concept: Disutility.
Explanation : When the want is fully satisfied, a consumer realises full satisfaction i.e. point of satiety.
But, beyond this point, he experiences negative utility. So, he refuses to consume any more unit of commodity.
If consumption continues, it results into disutility.

Question 5.
Lalita satisfied her want of writing on essay by using pen and notebook.
Answer:
Concept: Utility.
Explanation : Utility is want satisfying capacity of a commodity.

The given example explains that, Lalita’s want of writing an essay can be satisfied with the help of pen and note-book.

4. Observe the given table and answer the questions:

Units of Com. ‘X’	TU Units	MU Units
1	6	6
2	11	5
3	15	4
4	15	0
5	14	-1

1) Draw total utility curve and marginal utility curve.
2) a) When total utility is maximum marginal utility is …………….
b) When total utility falls, marginal utility becomes ……………
Answers:
1.
Maharashtra Board Class 12 Economics Solutions Chapter 2 Utility Analysis 1
2. Zero
3. Negative

5. Answer in detail:

Question 1.
State and explain the law of diminishing margmal utility with exceptions.
OR
State and explain the law of DMU? Explain its assumptions.
Answer:
Law of Diminishing Marginal Utility :
(A) Introduction:
The law of diminishing M.U. explains economic behaviour of a rational consumer.
The law was first proposed by Prof. Gossen and further explained in detail by Prof. Alfred Marshall in his book “Principles of J economics” published in 1890.
The law of DMU is universal in nature. It ) indicates common consumer’s behaviour that Marginal Utility diminishes with reduction in the intensity of want.

(B) Statement of the Law :
According to Prof. Alfred Marshall, “Other things remaining constant, the additional benefit which a person derives from a given increase in his stock of a thing, diminishes with every increase in the stock that he already has”.
In simple words, law of DMU can be stated as follows :
“Other things being the same, MU goes on ) diminishing with every successive unit of a j commodity consumed.”

Thus, the law of DMU explains that, the more of a thing you have, the less you want to have more of it.
In short, as consumption of identical units of commodity increases, MU diminishes.

(C) Assumptions of the law of DMU :
Assumptions are those conditions which are necessary for the validity of the law. They are as follows :

Cardinal Measurement: The law assumes that utility can be measured cardinally i.e. in numbers. So, it is possible to express and compare the utility derived from each unit of commodity consumed.
Homogeneity : It is assumed that all the units of commodity consumed are homogeneous or same. They are identical in case of size, shape, taste, colour, flavor, etc.
Rationality : A consumer is assumed to be rational. His behaviour is normal from economic’s point of view. It means, he tries to get maximum satisfaction.
Continuity : All units of commodity are consumed successively, one after another, without time interval.
Reasonability : The law assumes that, all the units of commodity consumed are reasonable in size. The unit of measurement is neither too big nor too small e.g. a cup of tea, glass of water, etc.
Divisibility : A commodity is assumed to be divisible. So it is possible to divide the units of commodity in a proper size.
Constancy : It is assumed that related factors like income, taste and preference, habits, choice of a consumer remain constant. MU of money is also assumed to be constant.
Single want: A given commodity is used to satisfy a single want of a person. So that it is possible to experience full satisfaction from a single want.
Schedule and Diagram :
The law can be explained with the help of following schedule and diagram :

Units of Commodity	Marginal Utility (M.U)
1	10
2	8
3	6
4	4
5	2
6	0
7	-2

The above given schedule shows that MU goes on diminishing with an increases in units of commodity consumed.
Graphical Presentation :
Maharashtra Board Class 12 Economics Solutions Chapter 2 Utility Analysis 2

In the above given diagram, X-axis indicates units of commodity and Y-axis measures marginal utility.
Various points are plotted on the graph which indicates MU derived from each unit } of commodity consumed.
When all these point are joined, we get MU curve. It slopes downward from left to right. It shows that MU diminishes as consumption of a commodity increases.
The shaded portion of the diagram shows negative utility. It is because, beyond a certain level, further consumption of a commodity results into disutility.

(E) Exceptions to the law of Diminishing M.U.
Exceptions are those cases for which the law is not applicable. They are as follows :

Hobbies
Miser
Addictions
Power
Money
Reading

They are explained as under :
(1) Hobbies : The law of DMU is not applicable in case of collection of stamps, coins, rare paintings, etc. It is because, when its stock increases, M.U. may increases because it gives more and more satisfaction.
However, it violates the assumptions like homogeneity and continuity.

(2) Miser : For a miser, every additional rupee gives him more and more pleasure.
So, when the stock of money increases, MU of money tends to rise.
However, the behavior of a miser is irrational. It violates the assumption of rationality.

(3) Addictions : It is said that, the level of intoxication increases for drunkard with every additional consumption of liquor. It may increase MU for him.
This condition is similar to most of the addictions.
Here again, the assumptions like rationality and continuity are violated.

(4) Power: It is an exception to the law of DMU because, when a person acquires power, his craze for power increases MU from power. As a person gets power, he desires to have more and more of it.
But, it violates the rationality, assumption.

(5) Money : Money is used as a medium of exchange. It helps to buy goods to satisfy human want. So MU of money increases with an increase in its stock.
MU of money never becomes zero. The law holds true to money too. MU of money declines slowly as its stock increases. So MU of money is more for poor than rich people.

(6) Reading : When a person reads more and more, he gets deeper and deeper knowledge so MU of reading tends to increase. Similarly the law does not hold true in case of music, dance, etc.
However, assumptions like continuity, homogeneity, etc. are violated.
The law of DMU is universal in nature. These cases are not real exceptions as they violate some assumptions.
So, it is said that, there are no real exceptions to the law of DMU.

Intect Questions

Try this (Textbook Page 8)

Make a list of 10 commodities which satisfy your wants.
Answer:
Book, pen, mobile, foot-wear, watch, umbrella, bag, dress, bed sheet, soap.

Try this (Textbook Page 8)

Make a list of 10 commodities which ( satisfy the wants of particular individuals performing specific activities. For example, A chalk has utility for a teacher.
Answer:

A stethoscope has utility for a doctor.
A net has utility for a fisherman.
A thermometer has utility for a nurse.
A cow has utility for a farmer.
Cooking gas has utility for a housewife.
A scissor has utility for a barber.
Wood has utility for a carpenter.
Needle has utility for a tailor.
Mud has utility for a potter.
A pen has utility for a writer.

Try this (Textbook Page 10) :

Following are the various types of utility and their respective examples. Arrange the information in the form of pairs:
Answer:
Types of utility : Time utility, possession utility, service utility and place utility.
Examples :

A dentist giving dental treatment to a patient.
A mountaineer using oxygen cylinder at a high altitude.
A farmer selling rice stored in the warehouse at the end of the season.
A retail trader purchasing 100 chairs from the wholesale trader.

Example	Type of Utility
(a) A dentist giving dental treatment to a patient.	Service utility
(b) A mountaineer using oxygen cylinder at a high altitude.	Place utility
(c) A farmer selling rice stored in the warehouse at the end of the season	Time utility
(d) A retail trader purchasing 100 chairs from the wholesale trader.	Possession utility

Try this (Textbook Page 11)

Complete the following chart :
Answer:
Total Utility :

(a) Total Utility is the sum total of the individual utilities derived from the consumption of all units of good.
(b) Total Utility increases at a diminishing rate.
(c) At a point of satiety, Total Utility is maximum.
(d) Total Utility declines if consumption continues.
(e) Total Utility determines value-in-use of a commodity.
(f) Total Utility is always positive.
Maharashtra Board Class 12 Economics Solutions Chapter 2 Utility Analysis 3

Marginal Utility :
(a) Marginal Utility is the addition made to the Total Utility from every additional unit consumed.
(b) Marginal Utility goes an diminishing.
(c) At a point of satiety, Marginal Utility = 0
(d) Marginal Utility becomes negative if consumption continues.
(e) Marginal Utility determines value-inexchange of a commodity.
(f) Marginal Utility can be positive, zero or negative.
Maharashtra Board Class 12 Economics Solutions Chapter 2 Utility Analysis 4

Try this (Textbook Page 14) :

Write an informative note on paradox of values along with examples.
Answer:
Paradox of values –
The concept of value paradox is introduced by Adam Smith.
The term value has two meanings
(i) Value in use
(ii) Value in exchange
Some goods have greater value in use but smaller value in exchange e.g. water.
However, some goods have smaller value in use but greater value in exchange e.g. diamond.
So, paradox of value is also called as water-diamond dilemma.
Greater value in use denotes high total utility whereas, greater value in exchange shows high marginal utility.
Thus, the concept paradox of value is very useful to understand the concepts of utility i.e., Total Utility & Marginal Utility.

12th Std Economics Questions And Answers: