Commerce Exam > Commerce Notes > Economics Class 12 > Determination of Income and Employment Hots
Determination of Income and Employment Hots | Economics Class 12 - Commerce PDF Download
Q.1 Why can the value of MPC be not greater than 1?
Ans. It is because change in consumption can never be greater than change in income.
Q.2 Does an excess of AD over AS always imply a situation of inflationary gap?
Ans. No. Inflationary gap occurs only when AD>AS corresponding to full employment level of employment.
Q.3 What happens if AD>AS prior to full employment level of employment?
Ans. It is a state of disequilibrium in economics. When AD>AS , producers have to cater to demand out of their existing stock of goods , implying that the desired level of stocks will decrease. It implies greater production & therefore there is increase in AS .This process continues till equilibrium is struck between AD and AS.
Q.4 In poor countries like India , people spend a high percentage of their income so that
APC and MPC are high . Yet , value of multiplier is low . Why?
Ans. Working of the multiplier process is based on one fundamental assumption: that there exists, excess capacity in the economy , so that whenever consumption expenditure rises (implying increase in demand ) there is a corresponding increase in production (implying increase in income ) . But poor countries like India, lack in production capacity.
Accordingly, whenever demand increases (in terms of increase in consumption expenditure), there is increasing pressure of demand on the existing output (implying
inflation or rise in prices) rather than the increase in output or income.
Q.5 Show a point on the consumption curve at which APC= 1.
Ans. APC = C/Y =1 is possible if C=Y, i.e. Consumption is equal to Income.
Q.6 In what respect foreign trade will be useful in removing the adverse economic effects of deficient demand?
Ans. Export increases the demand for goods and services produced in the domestic territory and is helpful to reduce deficient demand.
Q.7 What happens in an economy, when credit availability is restricted and credit is made costlier?
Ans. Aggregate demands falls.
The document Determination of Income and Employment Hots | Economics Class 12 - Commerce is a part of the Commerce Course Economics Class 12.
All you need of Commerce at this link: Commerce
|
64 videos|275 docs|52 tests
|
FAQs on Determination of Income and Employment Hots - Economics Class 12 - Commerce
| 1. What is the definition of income and how is it determined? |  |
Ans. Income refers to the money or earnings that an individual or business receives over a specific period. It can be determined by adding up all sources of revenue, such as wages, salaries, investments, and business profits, and subtracting any expenses or deductions.
| 2. How is employment determined and measured? | |
Ans. Employment is determined and measured by the number of people who are currently working or actively seeking work. It is commonly measured through employment surveys and data collection methods, which provide information on the number of individuals employed, unemployed, or participating in the labor force.
| 3. What are the different types of income? | |
Ans. There are several types of income, including earned income (such as wages and salaries), investment income (such as dividends and capital gains), rental income, and business income. Each type of income may be subject to different tax regulations and reporting requirements.
| 4. How does income affect the economy and overall employment? | |
Ans. Income plays a significant role in the economy as it directly influences consumer spending and overall demand. When people have more income, they are likely to spend more, which can stimulate economic growth and create job opportunities. Conversely, a decrease in income can lead to reduced spending, lower demand, and potential job losses.
| 5. What are some factors that can impact income and employment levels? | |
Ans. Several factors can impact income and employment levels, including changes in government policies, economic conditions, technological advancements, globalization, and industry-specific factors. For example, fluctuations in interest rates, trade agreements, or automation can significantly affect job availability and income levels in certain sectors.
Related Exams
About this Document
|
4.62/5 Rating |
|
Dec 23, 2024 Last updated |
Document Description: Determination of Income and Employment Hots for Commerce 2024 is part of Economics Class 12 preparation.
The notes and questions for Determination of Income and Employment Hots have been prepared according to the Commerce exam syllabus. Information about Determination of Income and Employment Hots covers topics
like and Determination of Income and Employment Hots Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Determination of Income and Employment Hots.
Introduction of Determination of Income and Employment Hots in English is available as part of our Economics Class 12
for Commerce & Determination of Income and Employment Hots in Hindi for Economics Class 12 course.
Download more important topics related with notes, lectures and mock test series for Commerce
Exam by signing up for free. Commerce: Determination of Income and Employment Hots | Economics Class 12 - Commerce
Description
Full syllabus notes, lecture & questions for Determination of Income and Employment Hots | Economics Class 12 - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for Economics Class 12 | Best notes, free PDF download
Information about Determination of Income and Employment Hots
In this doc you can find the meaning of Determination of Income and Employment Hots defined & explained in the simplest way possible. Besides explaining types of
Determination of Income and Employment Hots theory, EduRev gives you an ample number of questions to practice Determination of Income and Employment Hots tests, examples and also practice Commerce
tests
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Sample Paper
,Important questions
,shortcuts and tricks
,Viva Questions
,Exam
,video lectures
,Extra Questions
,MCQs
,ppt
,Semester Notes
,Determination of Income and Employment Hots | Economics Class 12 - Commerce
,Free
,Determination of Income and Employment Hots | Economics Class 12 - Commerce
,mock tests for examination
,practice quizzes
,study material
,Determination of Income and Employment Hots | Economics Class 12 - Commerce
,Summary
,Objective type Questions
,Previous Year Questions with Solutions
,past year papers
;
Additional Information about Determination of Income and Employment Hots for Commerce Preparation
Determination of Income and Employment Hots Free PDF Download
The Determination of Income and Employment Hots is an invaluable resource that delves deep into the core of the Commerce exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Determination of Income and Employment Hots now and kickstart your journey towards success in the Commerce exam.
Importance of Determination of Income and Employment Hots
The importance of Determination of Income and Employment Hots cannot be overstated, especially for Commerce aspirants.
This document holds the key to success in the Commerce exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Determination of Income and Employment Hots Notes
Determination of Income and Employment Hots Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Determination of Income and Employment Hots.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Determination of Income and Employment Hots Notes on EduRev are your ultimate resource for success.
Determination of Income and Employment Hots Commerce Questions
The "Determination of Income and Employment Hots Commerce Questions" guide is a valuable resource for all aspiring students preparing for the
Commerce exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Determination of Income and Employment Hots on the App
Students of Commerce can study Determination of Income and Employment Hots alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Determination of Income and Employment Hots,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Determination of Income and Employment Hots is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup