Class 12 – Maharashtra Board Solutions

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:

Contemporary India: Good Governance Question Answer Class 12 Political Science Chapter 5 Maharashtra Board

February 15, 2025February 14, 2025 by Prasanna

Balbharti Maharashtra State Board Class 12 Political Science Solutions Chapter 5 Contemporary India: Good Governance Textbook Exercise Questions and Answers.

Std 12 Political Science Chapter 5 Question Answer Contemporary India: Good Governance Maharashtra Board

Class 12 Political Science Chapter 5 Contemporary India: Good Governance Question Answer Maharashtra Board

Political Science Class 12 Chapter 5 Question Answer Maharashtra Board

1. (A) Complete the following statements by selecting the appropriate option.

Question 1.
The concept of Lokpal is taken from
(a) United States
(b) United Kingdom
(c) Sweden
(d) Russia
Answer:
(c) Sweden

Question 2.
The Right to Information was passed in the year
(a) 1950
(b) 1976
(c) 2016
(d) 2005
Answer:
(d) 2005

(B) State the appropriate concept for the given statements.

Question 1.
Person investigating complaints against government officials.
Answer:
Ombudsman

2. (A) Complete the concept map.

Question 1.
Maharashtra Board Class 12 Political Science Solutions Chapter 5 Contemporary India Good Governance 1
Answer:

(B) State whether the following statements are true or false with reason.

Question 1.
Lokayukta can investigate complaints against political executives.
Answer:
This statement is True.

Lokayuktas were created by the Lokpal and Lokayuktas Act, 2013 to look into allegations of corruption against public functionaries in the States.
A member of the public can file specific allegations with the Lokayukta for inquiry against any public servant including legislators, political executives, local bodies, public enterprises.

Question 2.
Good Governance aims at efficient use of natural resources.
Answer:
This statement is True.

One of the core values of good governance is effectiveness and efficiency.
It refers to sustainable human development in the context of efficient use of natural resources and the protection of the environment.

3. Explain the correlation between the following.

Question 1.
Good Governance and E-Governance.
Answer:
Good Governance aims to replace traditional public administration riddled with corruption and redtapism and to make it more citizen-centric, responsible and responsive. The core values of good governance include efficiency, inclusiveness, being consensus-oriented, transparency, accountability, etc. Specific programmes aimed at good governance include setting up of Lokpal and Lokayuktas, Creating of Citizen’s Charters, Right to Information Act, institutional mechanisms like NHRC, NCW, etc.

E-Governance is one of the most important aspects of good governance. It involves the employment of Information and Communications Technology (I.C.T) to facilitate efficient and instant transmission and processing of information as well as storing and retrieval of data. Thus, e-governance helps to implement core values of good governance such as transparency, effectiveness, accountability and participation of citizens.

4. Express your opinion of the following.

Question 1.
E-governance speeds up governmental processes.
Answer:
I agree with this statement.
E-governance refers to the use of Information and Communications Technology (I.C.T) to carry out the varied and complex aspects of governance and of citizen’s expectations. E-governance facilitates instantaneous transmission and processing of information as well as efficient storing and retrieval of data. This helps in speeding up governmental processes and taking decisions expeditiously. Large scale digitisation of records enables easy and reliable access over the internet.

Question 2.
E-governance brought administration closer to people.
Answer:
I agree with this statement.
E-governance refers to the use of Information and Communications Technology (I.C.T) to carry out the varied and complex aspects of governance and of citizen’s expectations. Large scale digitisation of records enables easy and reliable access over the internet.

E-governance helps in increasing the geographical and demographical reach of the government. Efforts have been made at various levels to improve the delivery of public services and simplify the process of accessing them. The objective of National e-Governance Plan is to bring public services closer to the people i.e., make them citizen centric.

5. Answer the following question in 80 to 100 words.

Question 1.
Explain various institutions protecting rights of different sections in India.
Answer:
The core values of good governance include administration being consensus-oriented based on principles of inclusiveness and equity as well as responsiveness to the needs of citizens.

The benefits of good governance must be available to all the sections of the society. The constitution provides for socio-economic and political safeguards to certain disadvantaged sections of the society. Besides the safeguards, provided for them the government has created several commissions to safeguard the rights of different sections of the society. These include the following:
1. National Commission for Scheduled Castes – Deals with matters related to the safeguards provided in the constitution for the Scheduled Castes and inquire into specific complaints relating to deprivation of rights of the Schedule Castes.

2. National Commission for Scheduled Tribes – Deals with matters related to the safeguards provided in the constitution for the Scheduled Tribes and inquire into specific complaints relating to deprivation of rights of the Schedule Tribes.

3. National Human Rights Commission – It deals with protection of rights relating to life, liberty, equality and dignity guaranteed by the constitution.

4. National Commission for Women – This was created to facilitate the redressal of grievances and accelerate socio-economic development of women.

5. National Commission for the Protection of Child Rights – It seeks to protect, promote and defend child rights in the country. The Commission defines a child as a person in the 0 to 18 years of age group.

6. National Commission for Backward Classes – The focus is welfare of socially and economically backward classes.

7. National Commission for Minorities – It monitors the working of the safeguards for minorities provided in the Constitution and by laws enacted by the Parliament and the State Legislatures. The National Commission for Minorities recognises the following religious communities as minority communities: Muslim, Sikh, Christian, Buddhist, Parsis and Jain.

8. National Consumer Disputes Redressal Commission – This provides for a consumer disputes redressal mechanism e.g.,consumer courts are set up.

6. Answer the following question with reference to the given points.

Question 1.
Explain in detail the following values of Good Governance.
(a) participation
(b) transparency
(c) responsiveness
(d) accountability
Answer:
In development administration, not only the government but also citizens and NGO’s play a vital role. The term ‘governance’ is used to describe this cooperative effort of the government and non-governmental bodies in public administration. Governance is broader than government as

it includes formal institutions of government e.g., legislature, bureaucracy as well as informal institutions e.g., NGO’s.
it aims to improve the performance of public institutions with focus on values like accountability, transparency, citizen feedback, etc.

The Good Governance approach aims at the following-

to reform the traditional, huge-sized public administration which was riddled with red tape and corruption.
to replace the archaic systems with responsible, participative and equitable systems.
to look at interlinkages between government and civil society.
to make the administration citizen-centered and not rule bound.

Maharashtra Board Class 12 Political Science Solutions Chapter 5 Contemporary India Good Governance 3

a. Participation – The effective functioning of any democratic system requires that people get an opportunity to participate in the process of decision making and its implementation.

b. Transparency – This value of good governance enables people to keep the government under scrutiny for e.g., Right to Information Act (2005) provides citizens access to information about public policies and actions.

c. Responsiveness – The government must be prompt and sensitive while designing policies to serve all stake holders within a reasonable time frame.

d. Accountability – This cannot be enforced without the rule of law and transparency. Any organization is accountable to those who will be affected by it’s decisions and actions, i.e. to stakeholders. Governmental institutions, private sector and civil society institutions must be accountable.

Activity

Question 1.
Find out the information regarding State level commissions working for safeguarding rights of various sections of society (Text Book Page No. 58)
Answer:
The State Level Commissions are-
1. State Information Commission was constituted with the objective to fulfill the mandate assigned in the RTI Act 2005. It consists of State Information Commissioners headed by the State Chief Information Commissioner.

2. State Commission for Women was constituted on 25th January 1993. It consists of a chair person, 6 nonofficial members, a member secretary and a DGP as ex-officio member. It aims to investigate into practices derogatory to women and suggest remedial measures. It also advises the government on matters related to upliftment to the status of women.

3. State Commission for Scheduled Castes and Scheduled Tribes was established by the Social Justice and Special Assistance Department dated 1st March 2005. It’s role is to study existing socio-economic, political and educational situation of Scheduled Castes and Tribes and to suggest measures to improve the same. It also investigates grievances raised by members of Scheduled Castes and Schedules Tribes.

4. State Human Rights Commission (MSHRC) was established on 6th March 2001 to protect, promote and enforce human rights. It can inquire suo motu (of its own accord) or on petition presented to it, into complaints of violation of human rights.

5. State Commission for Protection of Child’s Rights was set up in July 2007 to protect and defend child rights in the State.

6. State Commission for Minorities – was set up to safeguard the interests of religious and linguistic minorities.

Question 2.
Find out information about Ombudsman. (Text Book Page No. 58)
Answer:
Ombudsman is a Swedish term. In general, it means “a legal representative” or an official appointed to investigate complaints especially against public officials. The first country to set up ombudsman institution in 1809 was Sweden. In India, the Lokpal (for centre) and Lokayuktas (for States) are the ombudsman. The ARC (1966-70) headed by Morarji Desai recommended the institution of Lokpal and the Bill was first introduced in Parliament in 1968. Orissa was the first State to constitute institution of Lokayukta.

After the India Against Corruption Movement led by Anna Hazare, the Lokpal and Lokayuktas Bill, 2013 was passed in Parliament and came into force on 16th January 2014. The Lokpal is a multimember body, consisting of a chairperson and a maximum of 8 members. The Lokpal and Lokayuktas inquire into allegations of corruption / maladministration against public functionaries.

Class 12 Political Science Chapter 5 Contemporary India: Good Governance Intext Questions and Answers

ACTIVITY (Text Book Page No. 48)

Question 1.
Identify NGO’s that are working in your Area/City/State. Look at the issues and work done by them. In which NGO would you like to work?
Answer:
1. For environmental causes

Bombay Natural History Society (BNHS)
Vanshakti
Earth5R
Bombay Environmental Action Group (BEAG)
Vasundhara
PETA

2. For child welfare

Child Right and You (CRY)
Prerana
Helen Keller Institute
Bal Asha Trust
Salaam Baalak Trust
Akansha Foundation
Apnalaya

3. For educational purposes

Teach for India
Door step School
Magic Bus India Foundation
Pratham Education Foundation
VIDYA .
Abhilasha Foundation

4. For women’s welfare

Society for Nutrition, Education and Health Action (SNEHA)
Apne Aap Women’s Collective (AAWC)
Women’s India Trust (WIT)
MAJLIS

5. For the disabled/ill/aged

AASRA
National Association for the Blind (NAB)
ALERT-India (leprosy patients)
Cancer Patients Aid Association (CPAA)
Committed Action for Relief and Education (CARE)
Cheshire Homes India

Question 2.
Find out E-governance initiatives of Government of Maharashtra (Text Book Page No. 54)
Answer:
Maharashtra is a pioneer in citizen centric e-governance initiatives such as

SARITA (Stamps and Registration Information Technology based Administration) for registration of 67 different types of documents over the entire State.
SETU (Integrated Citizen Facilitation Centres) act as one stop service centre for people who have to visit government offices for permits/affidavits, etc. The Society for promotion of Excellence and Transparency for better Understanding of the requirements of citizen in interface with government.
E-validity for caste/minority status certificates.
Online Disability certificates.
SEVARTH – integrated system to provide electronic salary payment to all government personnel.
SARTHI – Computerisation of driving license and vehicle registration.
Rojgar Wahini – to provide free services like vocational guidance, job opportunities, self-employment guidance, etc.

Question 3.
Consumer Protection Act (1986) (Text Book Page No. 56)
Answer:
The Consumer Protection Act was enacted by Parliament in 1986 to protect the interests of consumers in India. It is replaced by the Consumer Protection Act 2019.
It aims to check unfair trade practices, ‘defects in goods’, and ‘deficiencies in services’ and has led to a widespread network of consumer fora and appellate courts all over the country. The Act provided six rights to consumers:

Right to seek redressal against unfair trade practices.
Right to be heard and be assured that their interests receive due consideration at an appropriate forum.
Right to be assured wherever possible, access to a variety of goods and services at competitive prices.
Right to be informed about the quality, standard, price of goods and services.
Right to be protected against marketing of goods and services which are hazardous to life and property.
Right to consumer education.

To ensure consumer rights, Consumer Disputes Redressal System included a three-tier level i.e.,

National Consumer Commission (set up by the central government).
State Consumer Commission (set up by each State).
District Consumer Forum (in each district of the State).

The redressal agencies (consumer courts) set up were. Central Consumer Protection Council and State Consumer Councils. Consumer courts are special-purpose courts dealing with cases involving consumer disputes, conflicts and grievances.

12th Std Political Science 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:

Contemporary India: Challenges to Peace, Stability and National Integration Question Answer Class 12 Political Science Chapter 4 Maharashtra Board

February 15, 2025February 14, 2025 by Prasanna

Balbharti Maharashtra State Board Class 12 Political Science Solutions Chapter 4 Contemporary India: Challenges to Peace, Stability and National Integration Textbook Exercise Questions and Answers.

Std 12 Political Science Chapter 4 Question Answer Contemporary India: Challenges to Peace, Stability and National Integration Maharashtra Board

Class 12 Political Science Chapter 4 Contemporary India: Challenges to Peace, Stability and National Integration Question Answer Maharashtra Board

Political Science Class 12 Chapter 4 Question Answer Maharashtra Board

1. (A) Complete the following statements by selecting the appropriate option.

Question 1.
The article had granted a ‘special status to Jammu and Kashmir.
(a) 352
(b) 360
(c) 370
(d) 110
Answer:
(c) 370

Question 2.
Left-wing Extremism originated in 1967 in
(a) Nagaland
(b) Jharkhand
(c) Gadchiroli
(d) Naxalbari
Answer:
(d) Naxalbari

(B) Identify the incorrect pair in every set and correct it.

Question 1.
(a) Naxalism – Red Corridor
(b) CPI (Maoist) – Uri attacks
(c) Assam – Sons-of-soil movement
Answer:
(b) Jaish-e-Mohammed – Uri attacks

Question 2.
(a) Boko Haram – Ireland
(b) LTTE – Sri Lanka
(c) ETA – Spain
Answer:
(a) Boko Haram – Nigeria
OR
IRA – Ireland

Question 1.
The left wing extemists prevent execution and implementation of developmental work, because ……………..
(i) they are against government.
(ii) the opposition parties ask them to do so.
(iii) they want to show that the government structure at field level is ineffective.
Answer:
(ii) the opposition parties ask them to do so.

Question 2.
In 1990’s Kashmiri Pandits migrated from Kashmir valley, because …………………..
(i) they weren’t from Kashmir.
(ii) there was growth in Islamic militancy.
(iii) there were no job opportunities for them.
Answer:
(i) they weren’t from Kashmir.

2. (A) Find the odd word.

Question 1.
Terrorism, Naxalism, Nationalism, Extremism.
Answer:
Nationalism (not a violent activity)

(B) State the appropriate concept for the given statements.

Question 1.
Threat use violence with an intention to create panic in the society.
Answer:
Terrorism

Question 2.
Involvement of people in decision making process of State.
Answer:
Good Governance

3. (A) Complete the concept maps.

Question 1.
Maharashtra Board Class 12 Political Science Solutions Chapter 4 Contemporary India Challenges to Peace, Stability and National Integration 1
Answer:

(B) State whether the following statements are true or false with reason.

Question 1.
Democracy is required to establish national integration and social transformation.
Answer:
This statement is True.

Democracy and national integration are complementary, since the core of the structural aspect of national consolidation is the democratic system of governance.
Participation of diverse socio-cultural groups in the process of governance is possible only through a representative democratic system. Democracy helps in political participation and social transformation by removing ethnic, caste and gender inequality.

Question 2.
National movement in India played an important role in national integration.
Answer:
This statement is True.

The national freedom movement extended across the length and breadth of the country and involved people of different religions, regions and cultures.
It played a vital role in bringing Indians together emotionally and politically into a nation and integrating them in a common frame work of political identity and loyalty.

4. Explain the correlation between the following.

Question 1.
National Unity and Regional Aspirations
Answer:
National Unity is possible when citizens of that State exhibit psychological oneness, solidarity and shared values. It is not homogeneity but a form of ethnic, religious and linguistic acceptance. Regional aspirations occur in forms like demand for separate States, language issues, etc., Regional aspirations have their roots in historical/linguistic/cultural issues or may be a product of regional political outfits. Sometimes, regional aspirations may even become secessionist as in case of Khalistan movement. India has tried to reconcile regional aspirations with national unity by creating a federation with a strong centre, creating of smaller States as well as the linguistic reorganisation of States.

5. Express your opinion of the following.

Question 1.
Peace and stability are necessary for the nation’s progress.
Answer:
Peace, stability and public order are necessary for nation’s progress and good life of citizens. An unruly society will lead to violence, loss of life, destruction of property, economic and political instability. Conflict resolution is linked to maintenance of law, order and peace. In the absence of order and stability, divisive tendencies will prevail, infrastructure will be targeted, investments will be discouraged thus becoming a barrier to economic growth. At a basic level, political stability is ensured using constitutional machinery and socio-economic development. In case of any problem occurring, the State tries to resolve it peacefully. In case the issue escalates or becomes violent, the State may employ force if necessary.

6. Answer the following question in 80 to 100 words.

Question 1.
What is Left Wing Extremism in India?
Answer:
Left Wing Extremism (also called Maoist movement or Naxalism) has major support base among landless labourers, dalits and tribals who experience a sense of oppression, injustice and neglect. The first attempt to promote a peasant struggle was the Telangana Movement (1946-51). The Naxal Movement originated in 1967 in Naxalbari (West Bengal) led by Kanu Sanyal and writings of Charu Majumdar.

Since 1980s the movement has taken a militant turn. In 2004 CPI (M-L), People’s War Group (PWG) and Maoist Communist Centre (MCC) of India merged to form CPI (Maoist) which aims to overthrow the government, Naxal activities aim to destroy public property and attack police and officials. The Red Corridor of naxal activities extends across States like Bihar, Jharkhand, Chhattisgarh, Maharashtra, Telangana, Andhra Pradesh, etc.

Some of their broad tactics are as follows:

Use of propaganda slogans
Establishment of mass movements
Mobilisation of women, tribals and minorities into the revolution
Mobilisation of urban population on mass issues
Develop appropriate forms of military organisation

Question 2.
Explain cross border terrorism in Jammu and Kashmir.
Answer:
The India Independence Act (1947) provided that princely States (562 existed then) could decide to join either Pakistan or remain independent. Maharaja Hari Singh of the Dogra dynasty delayed such a decision. In 1947, Kashmir’s population was 77% Muslim and 20% Hindu. The problem in
the region began when Pakistan sent Pashtun tribal raiders in October 1947 to force Hari Singh to join Pakistan. However, the Maharaja appealed to India for help and signed the Instrument of Accession making the State as a part of India.

The Government of India sent troops to the region to drive away the infiltrators. This led to the first India-Pakistan conflict (1947-48). In 1965, Pakistan attacked India but the local Kashmiri population did not support Pakistan. In 1965, Amanullah Khan created the Plebiscite Front in Pakistan Occupied Kashmir. It’s militant wing i.e., National Liberation Front carried out sabotage activities in Jammu and Kashmir.

In 1977, the Plebiscite Front was renamed Jammu and Kashmir Liberation Front (JKLF). Similarly, Pakistan lent support to guerilla outfits in the region like Hizb-ul-Mujahideen. In the 1990s, as instances of militancy increased, the minority Pandit population was forced to flee from Kashmir. At this time, local insurgency grew into terrorism sponsored by Pakistan and having training camps in Pakistan Occupied Kashmir. Pan-Islamic terrorist groups like Lashkar-e-Taiba, Hizbul, etc., and several Pakistan based persons like Hafeez Sayed have promoted terror activities and radicalisation of the local population. In recent years stone pelting by young protestors has increased.

7. Answer the following in 150 to 200 words.

Explain the role of the State with help of given points.
(a) Peace and order
(b) Economic development
(c) National Building
(d) Governance
(e) Welfare

Activity

Trace the changes that have taken place in Art 370 of the Indian constitution.

Class 12 Political Science Chapter 4 Contemporary India: Challenges to Peace, Stability and National Integration Intext Questions and Answers

Activity (Text Book Page No. 39)

Question 1.
What are the Fundamental Duties enshrined in the Indian constitution?
Answer:
To spread awareness about them, fundamental duties were inserted in the Part IV Article 51(A) of the Constitution by the 42nd Constitutional Amendment, 1976.
The fundamental duties include:

To abide by the Constitution and respect the National Flag and National Anthem.
To cherish and follow the noble ideas which inspired our national struggle for freedom.
To respect and protect the sovereignty, integrity and unity of India.
To defend and serve the country.
To promote harmony and the spirit of common brotherhood amongst all the people of India and to abolish evils hampering women’s dignity.
To value and preserve the rich heritage of our composite culture.
To protect and improve the natural environment including forests, rivers, trees, lakes and to show kindness towards animals.
To develop scientific temper and spirit of inquiry.
To protect public property and prevent violence.
To strive towards excellence in all spheres of individual and collective activity.
A parent or guardian should provide opportunities for education to his child, between the age of 6 to 14 years. (This has been added by 86th Constitutional Amendment)

Question 2.
Find out the details of the following events and discuss them in the classroom:
(i) Assam Oil Blockade (1980)
(ii) Assassination of Rajiv Gandhi (1991) (Text Book Page No.41)
Answer:
(i) Assam Oil Blockade (1980)
The Assam Movement (1979-1985) led by the All Assam Students Union (AASU) and All Assam Gana Sangram Parishad (AAGSP) was against the illegal immigrants in Assam. There were a series of protests to compel the government to identify and expel illegal immigrants (mostly Bangladeshi) and to provide safeguards to the indigenous Assamese. Some of the protests were violent e.g., the Nellie massacre (1983). On 15th August 1985, the Assam Accord was signed between the Rajiv Gandhi Government and leaders of the Assam movement by which all migrants who had entered the State prior to January 1, 1966 were accepted.

The Oil Blockade was part of the Assam agitation. Crude oil from Assam was pumped to a refinery at Barauni (Bihari). However, AASU protested and blockaded oil supply in 1980. A committee was appointed to suggest a new location for refinery within Assam. They suggested Bongaigaon near West Bengal border. The oil blockade resulted in huge losses to the petroleum industry.

(ii) Assassination of Rajiv Gandhi (1991)
Assassination of Rajiv Gandhi, former Prime Minister of India (1984-1989) occurred as a result of suicide bombing in Sriperumbudur, Chennai on 21st May 1991. It was carried out by a member of LTTE (Sri Lanka) known as Thenmozhi Rajaratnam (Dhanu) At least 14 others were killed in the explosion of the RDX laden belt by Dhanu. The assassination was attributed to LTTE being antagonised by Mr. Rajiv Gandhi’s sending of Indian Peace Keeping Force (IPKF) to Sri Lanka and the signing of the Indo-Sri Lanka Peace Accord with President J. Jayewardene in 1987.

12th Std Political Science 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:

Key Concepts and Issues Since 1991: Question Answer Class 12 Political Science Chapter 3 Maharashtra Board

February 15, 2025February 14, 2025 by Prasanna

Balbharti Maharashtra State Board Class 12 Political Science Solutions Chapter 3 Key Concepts and Issues Since 1991: Humanitarian Issues Textbook Exercise Questions and Answers.

Std 12 Political Science Chapter 3 Question Answer Key Concepts and Issues Since 1991: Maharashtra Board

Class 12 Political Science Chapter 3 Key Concepts and Issues Since 1991: Question Answer Maharashtra Board

Political Science Class 12 Chapter 3 Question Answer Maharashtra Board

1. (A) Complete the following statements by selecting the appropriate option.

Question 2.
Today the Indian approach to gender issues focuses on
(a) Education
(b) Welfare
(c) Development
(d) Empowerment
Answer:
(d) Empowerment

Question 3.
The first UN Conference on Human Environment was held in 1972 in
(a) Johannesburg
(b) Stockholm
(c) Rio
(d) New Delhi
Answer:
(b) Stockholm

(B) Identify the incorrect pair in every set and correct it.

Question 1.
(a) JGSY – Infrastructure development in rural areas
(b) PMKVY – Skill training to youth
(c) MGNREGA – Housing for everyone
Answer:
(c) MGNREGA – assured employment every year for every rural household

Question 2.
(a) National Commission for Women – 1992
(b) Planning Commission – 2015
(c) Rio+20 summit – 2012
Answer:
(b) Planning Commission – 1950

Question 1.
National policy for empowerment of women, protection of women from domestic violence act, Muslim women (protection and right on marriage) Act, the secual harassment at workplace (prohibition prevention and readressal) Act.

Question 2.
Climate change, waste management, water scarity, deforestation.

2. State whether the following statements are true or false with reason.

Question 1.
Planning Commission was created to promote agriculture in India.
Answer:
This statement is False.

The Planning Commission was set up in 1950 to formulate a plan for the effective and balanced utilisation of the country’s resources.
It’s function was to prepare Five Year Plans to tackle poverty, employment and promote the Welfare State. The Green Revolution was introduced to promote agriculture in India.

Question 2.
National Commission for Women was set up to protect rights for women in India.
Answer:
This statement is True.

National Commission for Women was set up to facilitate the redressal of grievances of women.
It aimed to safeguard the rights and legal entitlements of women and accelerate their socio¬economic development.

3. Explain the correlation between the following.

Question 1.
Women Empowerment and Sustainable Development.
Answer:
Empowerment is a process by which any category of oppressed persons gain control over their own lives by developing self esteem and courage to fight against injustice. Sustainable development refers to development using resources in a way that allows for them to renew or to continue to exist for other e.g., recycling materials. This seems almost impossible without gender equality and women’s empowerment. Women are empowered when they are able to access opportunities without restrictions such as in education, career, etc.,

Women’s economic empowerment refers to the ability of women to enjoy their right to control and benefit from resources, income etc as well as the ability to improve their economic status and well-being. Political empowerment includes affirmative action policies to increase participation of women in parliamentary / government positions and policymaking. Thus, women’s empowerment is a key factor for sustainable economic growth, social development and environmental sustainability.

Question 2.
Poverty and Development
Answer:
Poverty refers to deprivation of the basic necessities such as food, clothing, health services, education, etc., that determine quality of life. In economic terms, it is expressed as the poverty line. Development means some measurable improvement in some particular area. Alleviation or even eradication of poverty is the most important aim of developmental work.

Poverty is related to other problems of underdevelopment such as unemployment and inequalities. It hinders economic development as well as leads to issues of health, sanitation and disease, housing, crime, etc. Poverty alleviation i.e., set of economic and humanitarian measures, such as good governance, economic growth, government support in health education etc., are important for development.

4. Answer the following questions in 80 to 100 words.

Question 1.
Explain the traditional and non-traditional perception of poverty.

Question 2.
From 1960’s to 21 century what efforts has India taken to achieve development?

5. Answer the following question with reference to the given points.

Question 1.
Explain condition of women in India.
(a) Economic inequality
(b) Trafficking and exploitation
(c) Literacy rate
(d) Political representation
Answer:
All over the world, women have to face serious problems such as discrimination and violence, under-representation in economic and political decision-making, inequalities in education, health care, landholdings and workplaces and even in human rights.

Some of the important gender issues:
(a) Economic inequality – Participation of women in the labour market is about 28% only.
There is also income inequality due to wide gender wage gaps as well as inequality of opportunities to women e.g., unequal access to education and finance. In many countries, women are either not encouraged to work or employed in the informal sector. Women continue to be underrepresented in high-level, highly paid positions and experience gender discrimination and sexual harassment in the workplace. Women experience high levels of poverty, unemployment and other economic hardships.

(b) Trafficking and exploitation – Women are often exploited and denied basic rights. They are trafficked for purpose of sexual and economic exploitation particularly prostitution, ‘sold’ as brides, subjected to sexual crimes, forced labour, street begging, etc. Trafficking in women means that they are deceived or forced/sold, physically confined, abused with no access to protection or health care.

(c) Literacy rate – low literacy among women is acute in India. As per 2011 census report, female literacy rate is only 65.46% while for males it is 82.14%. The reasons for the low female literacy are-

traditional patriarchal notions that do not consider female education as economically advantageous
Schools in rural areas are not easily accessible and travel may not safe or easy.
Benefits of schemes like R.T.E have not reached many rural females.
Social evils like child marriage, female foeticide, dowry, etc.

(d) Political Representation – Poor political representation of women is a significant gender concern in India. The First Lok Sabha had only 24 women of total 489 members i.e., 5% and the 17th Lok Sabha (2019) has 78 women (14%). This is the highest representation of women in Lok Sabha till date. The Women’s Reservation Bill which proposes to reserve 33% of all seats in Lok Sabha and in State Assemblies for women is pending in the Lok Sabha. However, there exists 33% reservation for women in rural and urban local bodies.

Activity

Question 1.
Find out information on international agreements on environmental balance. (Text Book Page No. 34)
Answer:
1. Stockholm conference (Declaration of UN Conference on Human Environment, 1972) led to a 109 point Environmental Action Plan and establishment of the UN Environmental programme (UNEP).

2. Convention on International Trade in Endangered Species of Wild Flora and Faura (CITES) (1973) – grouped almost 30,000 plant and animal species into three levels of protection depending on the degree of regulation required.

3. Montreal Protocol (1987) – For protection of the ozone layer. It phases out production and use of ozone depleting chemicals.

4. Convention on Biological Diversity (CBD) (1992) – The aim was to promote conservation and sustainable use of biodiversity.

5. Kyoto Protocol (1997) – It supplements the 1992 UN Framework Convention on Climate change (UNFCCC) to limit six greenhouse gas emissions. It involved 37 countries and the UN.

6. Paris Agreement (2016) – It is an agreement within the UNFCCC, dealing with greenhouse gas emissions and strengthening global response to the threat of climate change.

Question 2.
Find out percentage of handicapped voters in 17th Lok Sabha suggest measures to increase their percentage.

Class 12 Political Science Chapter 3 Key Concepts and Issues Since 1991: Humanitarian Issues Intext Questions and Answers

ACTIVITY (Text Book Page No.26)

Question 1.
What are the different initiatives taken by the Indian Government to protect the environment?
Answer:
1. Swachh Bharat Abhiyan was launched on October 2, 2014 to achieve the mission of a clean India in both rural and urban areas. It was implemented by the Ministry of Drinking water and sanitation and the Ministry of Urban Development respectively. Swachh Bharat Mission (Gramin) aims to make India Open Defecation Free (ODF) For Urban Areas, it includes elimination of ODF, eradication of manual scavenging and proper solid waste management.

2. Namami Gange Programme (Clean Ganga Project) is implemented by the National Mission for Clean Ganga to conserve and rejuvenate the river Ganga. The centre allocated a total of Rs 20000 crore for the project. The key achievements include sewerage treatment capacity, river front development and surface cleaning of the river.

3. Green Skill Development Programme was launched in June 2017 by the MoEF and CC. It refers to skills that contribute to preserve and restore the environment, thus enabling youth to be employed or self-employment. Green skills include Pollution Monitoring, Waste Management, Forest and Wildlife Management, etc.

4. Constitutional Provisions – Article 48 (DPSP) says the State shall endeavour to protect and improve the environment. Article 51-A States that it shall be the duty of every citizen of India to protect and improve the natural environment.

5. Legislation – (i) Indian Wild Life Protection Act (1972) Forest Conservation Act (1980) and Environment (Protection) Act (1986)
(ii) National Environmental Policy (2006) Ministry of Environment, Forest and Climate change (MoEF and CC) along with Pollution Control Boards administer and enforce environmental laws. There is also the National Green Tribunal.

Question 2.
Salient Features of National Policy for Women (2016). (Text Book Page No.33)
Answer:
National Policy for Women was unveiled by Union WCD Minister, Smt Maneka Gandhi on 17th May 2016. It will replace National Policy for Empowerment of Women (2001). It shifts the focus from entitlements to rights and from mere empowerment to creating an enabling environment for women. It seeks to create conducive socio-cultural, economic and political environment to enable women to enjoy fundamental rights and realize their full potential. It’s priority areas include health, food security and nutrition, education, involving women in governance and decision making, encouraging entrepreneurship, facilitating women in the workplace and dealing with violence against women.

Question 3.
Find out information on international agreements on environmental balance. (Text Book Page No. 34)
Answer:
1. Stockholm conference (Declaration of UN Conference on Human Environment, 1972) led to a 109 point Environmental Action Plan and establishment of the UN Environmental programme (UNEP).

3. Montreal Protocol (1987) – For the protection of the ozone layer. It phases out production and use of ozone-depleting chemicals.

4. Convention on Biological Diversity (CBD) (1992) – The aim was to promote conservation and sustainable use of biodiversity.

5. Kyoto Protocol (1997) – It supplements the 1992 UN Framework Convention on Climate change (UNFCCC) to limit six greenhouse gas emissions. It involved 37 countries and the UN.

6. Paris Agreement (2016) – It is an agreement within the UNFCCC, dealing with greenhouse gas emissions and strengthening the global response to the threat of climate change.

12th Std Political Science 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:

Key Concepts and Issues Since 1991: Globalisation Question Answer Class 12 Political Science Chapter 2 Maharashtra Board

February 15, 2025February 14, 2025 by Prasanna

Balbharti Maharashtra State Board Class 12 Political Science Solutions Chapter 2 Key Concepts and Issues Since 1991: Globalisation Textbook Exercise Questions and Answers.

Std 12 Political Science Chapter 2 Question Answer Key Concepts and Issues Since 1991: Globalisation Maharashtra Board

Class 12 Political Science Chapter 1 Key Concepts and Issues Since 1991: Globalisation Question Answer Maharashtra Board

Political Science Class 12 Chapter 1 Question Answer Maharashtra Board

1. (A) Choose the correct alternative and complete the following statements

Question 1.
In 1995, GATT was replaced by the
(a) WTO
(b) ECOSOC
(c) UNDP
(d) TRIPS
Answer:
(a) WTO

Question 2.
……………… refers to a company that operates in several countries but has a distinct home base
(a) Transnational Corporation
(b) Mixed Economy
(c) Multinational Company
(d) Liberalism
Answer:
(c) Multinational Company

(B) Find the odd word.

Question 1.
Mobile, Satellite, Internet, Gramophone.
Answer:
Gramophone (not functioning on modern technology)

Question 1.
The international agency dealing with international trade.
Answer:
World Trade Organization (WTO)

Question 2.
The companies that operate in several countries.
Answer:
Multi National Companies

(D) Identify the incorrect pair in every set and correct it.

Question 1.
(a) Nestle – Trans National Corporation
(b) Copyrights – Intellectual Property
(c) India – Capitalist Market Economy
Answer:
(c) USA – Capitalist Market Economy
OR India – Economic Liberalism (Mixed economy)

Question 2.
(a) Amnesty International – Human Rights
(b) Green Peace – Environmental Issues
(c) Chernobyl – Trade Agreement
Answer:
(c) Chernobyl – Nuclear disaster

2. State whether the following statements are true or false with reason.

Question 1.
Globalisation brought in the concept of market economy.
Answer:
This statement is True.
(i) During the Cold War, the economic systems followed by countries, depended upon their ideology. For e.g., most West European nations and the USA were free democracies and followed capitalist economy.

(ii) In the era of globalisation there is only ‘market economy’. However, the nature of market economy is determined by the countries ideology for e.g., China has a socialist market economy, West European nations are described as ‘welfare market economies’ and USA is considered as ‘capitalist market economy’.

(iii) In most countries, the State has with draws from economic activities and the private sector and profit motive has propelled the economy.

Question 2.
Non-state actors have become irrelevant in the age of globalisation.
Answer:
This statement is False.
(i) Good governance and the participatory State focus on the role of the civil society which includes non-state actors such as NGO’s.

(ii) International relations today, are not only between States but also include non-state actors. These sometimes also pose a challenge to the position of the State. Globalisation has made non-state actors relevant. This includes organisations which are beneficial e.g., NGO’s working for humanitarian issues as well as threatening organisations e.g., terrorist outfits.

3. Explain the correlation between the following.

Question 1.
Globalisation and culture
Answer:
Globalisation refers to the rapid spread of goods and services, technology and information, ideas and culture, trade and interactions across the world. It is the connection of different parts of the world resulting in the expansion of international cultural, informational, economic and political activities. Events in one part of the world have an impact on other parts of the world. Changes have taken place economically and culturally.

Today a ‘global cosmopolitan culture’ has emerged i.e movement of people across the world and public awareness of global issues. This is noticed in matters like values eg secularism, clothing food choices, ways of celebrating festivals, etc. There is international awareness of India’s rich cultural and historical heritage. Similarly, westernisation and urbanisation have influenced Indian society eg breakup of the traditional joint family and rise of individualism and materialism in the country.

Question 2.
GATT and WTO
Answer:
The General Agreement on Tariffs and Trade (GATT) was signed on 30th October 1947 by 23 countries with the purpose to promote international trade by reducing/eliminating trade barriers such as tariffs or quotas. It came into force on 1st January 1948. It aimed to boost economic recovery after World War II through reconstructing and liberalizing global trade. It introduced the most favoured nation principle. GATT was refined over 8 rounds of negotiations, leading to creation of World Trade Organization (WTO) which replaced GATT on 1st January 1995.

WTO covers services and intellectual property also. It is the international agency overseeing the rules of international trade i.e., it promotes free trade agreements, organizes trade negotiations, settles trade disputes, etc. It’s headquarters is in Geneva. It has 123 member States. The WTO dispute settlement system is faster, more automatic than the GATT system and it’s rulings cannot be blocked.

4. Express your opinion of the following.

Question 1.
Participatory State is beneficial to the society.
Answer:
Participatory State advocates more involved forms of citizen participation and greater political representation than traditional representative democracy. It goes beyond traditional democratic practices wherein decisions are made by the majority. In a participatory State, all sections of the society are involved in the making of policy. Participatory State is beneficial as it gives citizens a central role in public policy through public discussion, negotiations, voting, etc. It emphasizes the importance of making citizens aware and providing for a form of communication which promotes political dialogue.

5. Answer the following question in 80 to 100 words.

Question 1.
What are the positive and negative aspects of Globalisation?
Answer:
Globalisation refers to the rapid spread of goods and services, technology and information, ideas and culture, trade and interactions across the world. It is the connection of different parts of the world resulting in the expansion of international cultural, informational, economic and political activities. In the early 1990s, the term globalisation was used to include economic, political, socio¬cultural, technological and ideological changes that occurred in the world in the post cold war era. The world has become more interconnected due to advances in technology and communication. Events in one part of the world have an impact on other parts of the world. Changes have taken place economically and culturally.

The Positive aspects of globalisation are-

It creates more employment opportunities.
It encourages free trade.
It leads to better choice of goods and services to the consumer.
It leads to wider investments in developing countries.
It enhances efficiency of the tertiary sector i.e., banking and finance.
It increases purchasing power of citizens and enhances their standard of living.
It increases labour productivity and reduces capital-output ratio.
It helps to increase efficiency in the production system.

The negative aspects of globalisation are-

Globalization promotes technological adaption to increase productivity but has also resulted in loss of jobs.
Local/small scale industries cannot withstand competition from the MNC’s and may be bought off or shut down.
Less developed countries may become dependent on the technologically superior countries.
It has caused specialization of labour and so there are few employment opportunities for unskilled labour.
It has led to increased gap between rich and poor nations.
It may lead to overexploitation of resources and negatively impact the environment.
It leads to the harmful effects of consumerism.
It may lead to reduction in social welfare schemes in both developed and developing countries.

Activity

Talk to people of the older generation to find out what changes have taken place in the age of globalisation.

Class 12 Political Science Chapter 2 Key Concepts and Issues Since 1991: Globalisation Intext Questions and Answers

Activity (Text Book Page No. 18)

Question 1.
What has been the impact of globalisation on the Indian agricultural sector, especially the small farmer?
Answer:
Globalisation has both positive and negative consequences on Indian agriculture.
The positive consequences are-
(i) Availability of modern agro technologies in pesticides / herbicides, fertilizers, new varieties of high yield seeds to increase food production.
(ii) There are new markets for agricultural products.
(iii) Farmers can sell their goods directly to companies and eliminate the role of middlemen.

The negative effects of globalisation on agriculture are-

Farmers are shifting from traditional / mixed cropping to unsustainable cropping practices mainly for cash crops.
MNC’s have captured the India market, making farmers dependent on expensive HYV seeds, fertilizers, etc.
Small and marginal farmers may not be able to avail of the advantages of globalisation. They may be pushed into debt leading to tragic consequences like farmer suicides.

Question 2.
Find out what the Arab Spring movement was and how social networking was used during that movement. (Text Book Page No. 21)
Answer:
Arab Spring was a series of protests and uprisings against the governments that spread across large parts of the Arab world in the early 2010s. (i.e. December 2010 to December 2012). It began with protests in Tunisia and spread quickly to other countries like Libya, Egypt, Yemen, Syria and Bahrain. There were riots, civil wars and the main slogan of protestors was “the people want to bring down the regime”.

There were sustained street demonstrations in Iraq, Algeria, Morocco, Jordan, Lebanon, etc. The social media i.e. facebook, etc. was the driving force behind the swift spread of the revolutions. The results of these movements were that regimes of Tunisia (Abidine Ben Ali), Egypt (Hosni Mubarak) Libya (Gaddafi), Yemen (Abdullah Saleh) were ousted while in Syria, Iraq, etc., a full scale civil war resulted. Only in Tunisia, there was a transition to constitutional democratic government.

Question 3.
Find out cases where agitations have used social networking to highlight their demands. (Text Book Page No. 21)
Answer:
Social networking and micro media have aided many protests and agitations. Some examples are:
(i) Arab Spring movements (2010-2012) used media power eg., Facebook to over throw despotic rulers e.g., Gaddafi in Libya or Hosni Mubarak in Egypt.

(ii) In India, the Anti-Corruption Movement led by Anna Hazare (2011) was helped by extensive media coverage and social media posts specially among the youth and students.

(iii) Social networking played a vital role in the “Me Too” movement all over the world to expose workplace sexual harassment especially in the glamour industry.

(iv) Social networking played a major role in galvanising support during the pro-democracy demonstrations in Hong Kong.

(v) Various social media handles fuelled the protests against NRC, CAA, etc., in various States of India.

Question 4.
Can the cooperative movement of India be an answer to the domination of multinational and transnational companies? The philosophy of the cooperative movement is to provide both, empowerment and finance to the members while that of the corporations work on profit motive. Give your opinion on this. (Text Book Page No. 17)
Answer:
Cooperative Movement in India can be traced to the Cooperative Credit Societies Act (1904). India’s first Prime Minister, Jawaharlal Nehru had strong faith in the cooperative movement. Hence, cooperatives became an integral part of Five Year Plans in India. In 1958, National Development council recommended setting up of Cooperative Marketing Societies. The major sectors where cooperatives dominate are in dairy, agriculture, banking and rural credit, etc. Article 43, Part IV (DPSP) of the constitution, mentions about promotion of cooperatives mainly in rural areas.

The importance of the cooperative sector.

it provides agricultural credits where the State and private sectors have not been able to do so.
it helps to overcome the constraints of agricultural development.
it provides empowerment to the members.
it can be an answer to the domination by the MNC’s which work solely on the profit motive. If the problems of cooperatives are overcome, they can strengthen the financial sector and lessen our reliance on MNC’s.

12th Std Political Science Questions And Answers:

Elasticity of Demand Question Answer Class 12 Economics Chapter 3B Maharashtra Board

February 15, 2025February 14, 2025 by Bhagya

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand Textbook Exercise Questions and Answers.

Std 12 Economics Chapter 3B Question Answer Elasticity of Demand Maharashtra Board

Class 12 Economics Chapter 3B Elasticity of Demand Question Answer Maharashtra Board

Economics Class 12 Chapter 3B Question Answer Maharashtra Board

1. Complete the following statements:

Question 1.
When the supply curve is upward sloping, its slope is ……………….
a) positive
b) negative
c) first positive then negative
d) zero
Answer:
a) positive

Question 2.
An upward movement along the same supply curve shows ………………..
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Answer:
c) expansion of supply

Question 3.
A rightward shift in supply curve shows ………………..
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Answer:
d) increase in supply

Question 4.
Other factors remaining constant, when less quantity is supplied only due to a fall in price, it shows ………………..
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Answer:
a) contraction of supply

Question 5.
Net addition made to the total revenue by selling an extra unit of a commodity is ………………..
a) total Revenue
b) marginal Revenue
c) average Revenue
d) marginal Cost
Answer:
b) marginal Revenue

2. Complete the Correlation:

1) Expansion of supply: Price rises:: Contraction of supply: ………………….
2) Total revenue : …………………. :: Average revenue :TR/TQ
3) Total cost : TFC + TVC :: Average cost : ………………….
4) Demand curve : …………………. :: Supply curve : Upward
5) …………………. : Change in supply :: Other factors constant: Variation of supply
Answers:
(1) Price falls
(2) PxQ
(3) TC ÷ TQ
(4) Downward
(5) Other factor changes

3. Give economic terms:

1) Cost incurred on fIxed factor.
2) Cost incurred per unit of output.
3) Net addition made to total cost of production.
4) Revenue per unit of output sold.
Answers:
(1) Fixed Cost
(2) Average Cost
(3) Marginal Cost
(4) Average Revenue

4. Distinguish between:

Question 1.
Stock and Supply.
Answer:

Stock	Supply
(a) Stock refers to the total quantity of commodity available with producer for sale.	(a)Supply is that part of stock which the seller is willing to offer for sale at a given price.
(b) It is outcome of production. If production increases, stock will also increase.	(b) It is outcome of stock. Stock is the basis of supply.
(c) It is a fund or reservoir and a static concept (inelastic).	(c) It is a flow concept. It changes according to change in price (elastic).
(d) It can exceed supply.	(d) It cannot exceed stock.

Question 2.
Expansion of Supply and Increase in Supply.
Answer:
Expansion / Extension of Supply

When the supply of a commodity rises only due to the rise in the price of the commodity, then it is said to be extension in supply.
Extension of supply is a case of variation in supply.
Rise in price is the only factor due to which supply expands / extends.
When there is extension in supply, there is an upward movement on the same supply curve.

Increase in Supply :

The supply is said to increase if at the same price more is supplied.
Increase in supply is a case of changes in supply.
Supply increases due to
(1) fall in cost of production
(2) improvement in transport facility
(3) introduction of modern technology
(4) government subsidies
(5) more imports etc.
When there is an increase in supply, the supply curve shifts to the right of original supply curve.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 2

Question 3.
Contraction of Supply and Decrease in Supply.
Answer:
Contraction of Supply

Contraction of supply occurs when quantity supplied of a commodity falls due to a fall in price alone.
It is a case of variation in supply.
Supply contracts due to fall in price alone.
When there is a downward n curve.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 3
Decrease in Supply

Decrease in supply occurs when less quantity is supplied at the same price.
It is a case of changes in supply.
Supply decreases due to –
(1) increase in cost of production
(2) transport strike
(3) outdated technique
(4) heavy taxes imposed by government.
(5) more exports etc.
When there is curve shifts to curve.

Question 4.
Average Revenue and Average Cost.
Answer:

Average Revenue (AR)	Average Cost (AC)
(a) Average revenue refers to average income earned per unit of a sold commodity.	(a)Average cost refers per unit of cost of production of a commodity produced.
(b) It is calculated by dividing total revenue (TR) earned by number of unit sold.	(b) It is calculated by dividing total cost (TC)by number of units of that commodity produced.
(c) Symbolically it in expressed as $ [latex]\frac { Total Revenue }{ Total Quantity sold }$ [/latex]	(c) Symbolically it is expressed as $\frac { Total Cost }{ Total Quantity produced }$
E.g. If TR from sale of 10 units of a commodity is Rs. 1000 then, AP = 1000/10 = Rs. 100	E.g. If TC of 100 units a commodity is Rs. 1000 then, AC = $\frac { 1000 }{ 100 }$ = Rs. 10

5. Observe the following table and answer the questions.

A) Supply schedule of chocolates

Price in Rs.	Quantity supplied in units
10	200
15	………
20	300
25	350
30	……..
35	……..
40	……..

Question 1.
Complete the above supply schedule.
Answer:

Price in Rs.	Quantity supplied in units
10	200
15	250
20	300
25	350
30	400
35	450
40	500

Question 2.
Draw a diagram for the above supply schedule.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 6

Question 3.
State the relationship between price and quantity supplied.
Answer:
This diagram shows the direct relationship / between price and quantity supplied of) chocolates. When its price is ? 10, 200 units ( are supplied and as price rises to 15, 20, 25 ? …. and so on, quantity supplied also rises to )
When the schedule is plotted on the graph we 250, 300, 350 and so on. This is the law of supply of an individual firm.

B) Observe the market supply schedule of potatoes and answer the following questions.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 7

Question 1.
Complete the quantity of potato supplied by the firms to the market in the above table.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 8

Question 2.
Draw the market supply curve from the schedule and explain it.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 9
When the schedule is plotted on the graph we get a market supply curve ‘SS’ which is upward sloping. This curve shows that as price rises from ₹ 1 to ₹ 2, supply rises from 1oo to 112 kg, but when price rises from ₹ 2 to ₹ 3, supply rises to a greater extent from 112 kg to 155 kg in the market. When price rises to ₹ 4 Supply falls from 155 kg to 154 kg. This may be because of perishable or seasonal good that supply could not Jj be increased and supply falls. This show backward bending supply curve, showing partly an exception to the supply curve.

6. Answer the following questions:

Question 1.
Explain the concept of total cost and total revenue.
Answer:
Total Cost (TC): It is the total expenditure incurred by a fir m on the factors of production required for the production of goods and services. Total cost is the sum of Total Fixed Cost (TFC) and Total Variable Cost (TVC). Total Fixed Cost is the cost incurred on fixed factors of production like land, factory, building, capital, etc. These factors cannot be changed in the short period. They remain constant. Total Variable Cost is the cost incurred on variable factors such as raw – materials, labour, etc. These factors can be varied or changed according to the change in output level. So the variable cost varies. Total Cost = Total Fixed Cost + Total Variable Cost
i.e., TC = TFC + TVC
TC increases as the level of output increases.

Total Revenue :
(Income) refers to total receipts of the firm from its sales of commodity. It is obtained by multiplying the price per unit of the commodity with the total number of units!; of commodity sold to the consumers. Thus, Total Revenue = Price per unit Total Number of units of commodity sold.
Example : If the firm sells lo units of a commodity at ₹ 100 per unit then total revenuewifibe TR = 100 x 10. TR= ₹ 1000

Question 2.
Explain determinants of supply.
Answer:

Cost of Production : Changes in the price of factors of production like rent, wages, interest affects the cost of production. When cost of production increases, supply decreases.
Price of Other Goods : The supply of a given commodity depends on the price of other commodity. E.g. if the price of wheat rises and that of rice remains the constant, then the producer will think of producing J more of wheat. This will affect the supply of rice.
price of the Commodity : Price is an important factor influencing the supply. More is supplied at a higher price and less at a lower price. So price and supply are 5 directly related.
Climatic Conditions : The supply of j commodity is also influenced by the forces
Government Policy : Government policies like taxation, subsidies, industrial policies etc., may encourage or discourage production and supply. A tax on the commodity will raise the cost of production and reduce the supply while a subsidy on the other hand will provide an incentive to increase production and supply.
Exports and Imports : When the
government resort to imports, supply expands, at the same time heavy exports would reduce the supply in the domestic market.
Nature of Market : In a competitive market, the supply would be more but in a monopoly market the seller may create artificial scarcity to raise the price.
Future Expectation : If future trends indicate a rise in price, the supply decreases at present. On the other hand if the sellers expect the future price to fall, supply would increase in the current period.
Technique of Production : Improvement in the technique of production will lead to increase in supply. Application of advanced technology enables the producer to produce goods on large scale at a lower cost and lesser price.
Infrastructure Facility : If means of transport and communication are well developed, the extent of market would be wide. i.e. supply will increase.
Natural and Man-made Calamities : Natural calamities like earthquake, cyclone, flood etc., will affect the supply in the market. Even man-made calamities like a bomb-blast, affects supply. Even a strike call can affect supply in the market.

7. Answer in detail :

Question 1.
State and explain law of supply with exceptions.
Answer:
Law of Supply :
(A) Introduction : The law of supply was introduced by Dr. Alfred Marshall in his book “Principles of Economics” published in 1890. The law establishes a functional relationship between the price of a commodity and quantity supplied of that commodity. It explains the general tendency of the sellers in offering more goods for sale at a higher price than at a lower price.

(B) Statement of the Law : According to Prof. Alfred Marshall “Other things remaining constant, the higher the price of the commodity, greater is the quantity supplied and lower the price of the commodity, smaller is the quantity supplied.”In other words, quantity supplied of a commodity varies directly with price i.e., with a fall in price supply contract and with a rise in price supply expands.
S = f (P) [S = Supply, P = Price, f = Function of]
The law can be better understood with the help of a market supply schedule and market supply curve.

(C) Market Supply Schedule : Market supply schedule is a tabular representation of various quantities of a commodity offered for sale by all the sellers in the market at different prices during a given period of time. The schedule is a hypothetical one except one price rest are imaginary prices.

The above schedule clearly shows that sellers in general want to sell more at high prices and less at low price. E.g., at a low price of Rs.10 per unit the seller supplies only 100 units per day and at high price of Rs. 50 the supply rises to 500 units of ‘X’ per day.

(D) Market Supply Curve : It is graphical representation of the above market supply schedule. Price is measured on ‘Y’ axis and quantity supplied on ‘X’ axis and above schedule is plotted. We derive a supply curve SS.

Market Supply Schedule

Price of ‘X’ per unit (in ?)	Total Market Supply per day (in units)
10	100
20	200
30	300
40	400
50	500

There are some exceptions to the law of s supply. Following are such cases when supply may fall with the rises in price or rise with the fall in price.

(1) Labour supply : Supply of labour in the ) terms of hours of work is an important exception pointed out by economists. Generally when wages rise, workers work more, but after a certain point if wages continue to rise, supply of labour falls i.e. workers wish to earn more by work in for less hours and supply curve of labour would bend backwards as shown below :
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 10
In this figure as wage rate rises up to 0W, ;i supply of labor also rises up to ON, but when wage rate rises to 0W., labour supply falls from ON to 0Nr Hence an exception.

(2) Saving : In case of savings generally it is observed that as the rate of interest rises, savings also rises but some people want to have a fixed regular income by way of interest. They may save less at a higher rate of interest and save more at a lower rate of interest. For example : suppose a person is interested in earning a fixed income of ₹ 800 p.a. then he saves ₹ 10,000/- at 8% rate of interest but when rate of interest increases to 10%, he will save only ₹ 8,000/-.

(3) Future Expectations: If the seller expects a fall in price in future, then he will supply more today even at a low price. But if he expects the prices to rise further in future he will withhold the supply today to supply more in future at a high price.

(4) Need for Cash : When the sellers are in urgent need of liquid cash, then even at a lower price they will offer more goods for sale.

(5) Rare Goods : In case of rare collections such as rare painting, old coins, antique, the law is not applicable as the supply remains fixed. The supply curve is a vertical straight line parallel to Y axis.

(6) Agricultural Goods: Supply of agricultural product is influenced by natural factors like climatic conditions, rainfall etc., which cannot be controlled by man. So in bad weather condition, even at a higher price the supply of agricultural commodities will not increase.

Intext Questions

Question 1.
“Concept of supply is a micro concept but concept of aggregate supply is a macro concept”. Explain. (Textbook Page No. 43)
Answer:
Micro economics studies about economic behavior of units like households, firm market and particular commodities. Whereas macro economics deals with the broad economic concepts like total demand, total supply, national income, etc.
Supply refers to supply of an individual seller and aggregate supply refers to total supply of a commodity.
Hence, supply is a microscopic concept and aggregate supply is macro concept.

Question 2.
What do you mean by aggregate supply? (Textbook Page No. 43)
Answer:
Aggregate supply refers to the minimum amount of sales proceeds which the entrepreneurs expect to receive from the sale of output at a given level of employment.

Find out (Textbook Page No. 43)

If a firm produces 600 units of a commodity in a day and incurs a total cost of ₹ 30,000. Calculate the Average Cost.
Answer:
Average cost refers to the cost of production per unit cost of a commodity. It is calculated by dividing total cost by total quantity of a commodity. Hence,
AC = $\frac{\mathrm{TC}}{\mathrm{TQ}}=\frac{30,000}{600}$ = ₹ 50 per unit

Find out (Textbook Page No. 43)

If a firm sells 400 units of a commodity at ₹ 10 unit. Calculate the TR and AR.
Answer:
TR = Price X Quantity
= 10 x 400
= 4,000
AR = $\frac{\mathrm{TR}}{\mathrm{TQ}}$
= $\frac{4,000}{400}$
= ₹ 10

12th Std Economics Questions And Answers: