TLDR;
Alright बच्चों, let's get ready to ace these economics subjective questions! Many students have been asking for subjective question practice, so we're diving deep into it. We'll aim to cover the entire syllabus in two to three classes, ensuring you have a solid command over the subject. This class is super important, especially for those who haven't been able to study economics throughout the year. The goal is to provide a comprehensive overview of the entire syllabus in one PDF, so you don't need to read everything. Just focus on these classes, and you'll be set to rock your economics exam.
- Subjective questions practice for economics.
- Comprehensive syllabus overview in two to three classes.
- PDF with the entire syllabus.
Difference Between Contraction and Decrease in Demand [4:25]
So, the basic difference between contraction and decrease in demand is this: Contraction of demand happens because of a change in price. If the price goes up, demand goes down. Decrease in demand, on the other hand, happens due to factors other than price, like changes in income, taste, or population. For example, during summer, the demand for cold drinks is high even if the price remains the same, but in winter, the demand is low. Contraction involves movement along the same demand curve, while decrease involves a shift in the demand curve.
Basic Features of a Market [8:58]
A market needs to have a few basic features. First, there should be buyers and sellers. Second, there should be commodities or services that can be bought and sold. Third, there should be a price determination mechanism. Fourth, there should be an area where you can sell your goods. And finally, there should be free competition. These features are essential for a market to function properly.
Features of Monopolistic Competition Market [10:34]
The monopolistic competition market, which is what we see around us these days, has several key features. There are a large number of buyers and sellers. Product differentiation is a big thing, where each product is different in terms of quality and quantity. There's free entry and exit for firms. Selling costs are very high, as marketing and advertising are crucial. There's some control over prices, and non-price competition is common, focusing on quality and brand rather than price. Close substitutes are also available in this market.
Assumptions of the Law of Demand [13:19]
The law of demand states that if other things remain the same, price increases, demand decreases, and vice versa. But this law only applies if certain conditions are met. The income of the consumer should remain constant. Tastes and preferences should remain constant. The prices of related goods should remain constant. There should be no change in population. There should be no change in government policy. And there should be no expectation of changes in future prices. If any of these conditions are not met, the law of demand will not apply.
Substitute Goods vs. Complementary Goods [18:54]
Substitute goods are those that can be used in place of each other, like tea and coffee. If you can't have tea, you can have coffee. Complementary goods are those that are used together, like sugar, tea leaves, and milk for making tea. You need all these to make tea. So, substitute goods are alternatives, while complementary goods are used together.
What is Meant by National Income? [22:05]
National income is the total monetary value of all final goods and services produced within a country's national boundaries in a year. It's also the result of labor and capital acting on the country's natural resources.
Define Macroeconomics [22:59]
Macroeconomics is a branch of economics that studies the entire economy. It deals with aggregates like national income, total employment, general price level, inflation, and economic development.
What is Factor Income? [23:43]
Factor income is the income earned by providing a service. For example, rent for land, wages for labor, interest for capital, and profit for entrepreneurship. It's what you get in return for providing a service.
What is Balance of Payment? [24:52]
Balance of Payment (BOP) is the difference between a country's exports and imports. It's calculated as Export - Import, including both visible and non-visible items. BOP includes both the current account and the capital account.
What is Aggregate Demand? [26:09]
Aggregate Demand (AD) is the total demand in the economy. The formula for AD is: AD = C + I + G + (X - M), where C is consumption demand, I is investment demand, G is government demand, and (X - M) is net export.
How is Price Determined Under Perfect Competition Market? [27:27]
In a perfect competition market, price is determined by demand and supply. The point where the demand and supply curves intersect is the equilibrium point, and that's where the price is determined.
What is the Effect of Shift of Demand and Shift of Supply on Price? [28:37]
If demand increases, the demand curve shifts to the right, and if demand decreases, it shifts to the left, assuming supply remains constant. Similarly, if supply increases, the supply curve shifts to the right, and if supply decreases, it shifts to the left, assuming demand remains constant.
What is the Difference Between Short Run and Long Run Production Function? [29:39]
In the short run, some factors are fixed, and some are variable. But in the long run, all factors are variable. Short run is less than a year, long run is more than a year.
What are the Differences Between Microeconomics and Macroeconomics? [33:24]
Microeconomics studies individual units of the economy, while macroeconomics studies the entire economy. Microeconomics has a limited scope, while macroeconomics has a broader scope. Microeconomics deals with individual consumer behavior, while macroeconomics deals with national income and total employment.
What are the Differences Between Balance of Trade and Balance of Payment? [34:41]
Balance of Trade (BOT) includes only visible items, while Balance of Payment (BOP) includes both visible and non-visible items. BOT is the difference between the export and import of goods only, while BOP is the difference between the export and import of both goods and services.
What is Government Budget? And What are the Main Features of Government Budget? [37:48]
A government budget is a statement of the government's estimated income and expenditure for a specific period, usually a year. It includes estimated receipts and expenditures, is prepared for a specific period, is an annual financial statement, classifies expenditures and revenues, shows the government's policy, is a legal authority, and aims to balance income and expenditure.
Explain the Law of Diminishing Marginal Utility Helps With the Diagram [41:57]
The law of diminishing marginal utility, given by Gossen, states that as a person consumes more units of a commodity, the satisfaction derived from each additional unit decreases. It depends on total utility (TU) and marginal utility (MU). Total utility is the sum of marginal utility, and marginal utility is the change in total utility.
What Do You Mean By Equilibrium Price? How It Is Determined In Perfect Competition Mark? [44:34]
Equilibrium price is the price at which the demand and supply of a commodity are equal. It's the point where the demand and supply curves intersect. In a perfect competition market, this is where the price is determined.
How is Price Determined Under Monopoly Market? [46:20]
In a monopoly market, the seller determines the price. Since there's only one seller, they have the power to set the price, and buyers have to accept it.
Explain the Concept of Inflmetry Gap [47:34]
The inflationary gap is the difference between aggregate demand and aggregate supply when aggregate demand is higher. For example, if aggregate demand is ₹400 crore and aggregate supply is ₹300 crore, the inflationary gap is ₹100 crore.
What is Central Bank Mention is Main Function of With Reference of India? [49:45]
A central bank is the main monetary authority in a country. In India, the central bank is the Reserve Bank of India (RBI). The functions of RBI include issuing notes, acting as the lender of last resort, controlling credit, maintaining the stability of the value of money, managing foreign exchange, and managing public debt.
Explain Balance Budget, Surplus Budget and Deficit Budget [52:28]
A balanced budget is when the government's revenue equals its expenditure. A surplus budget is when the government's revenue is more than its expenditure. A deficit budget is when the government's expenditure is more than its revenue.
Define Flow [53:52]
Flow refers to the movement of money in the economy. It's the quantity that is measured over a period of time, like income and expenditure.
Define National Income [54:21]
National income is the total monetary value of all final goods and services produced by the normal residents of a country during a financial year, including net factor income from abroad.
What is Barter System? [54:57]
The barter system is a system where goods are exchanged for goods. It existed before the creation of money.
Define Stutary Liquidity Ratio [55:47]
The Statutory Liquidity Ratio (SLR) is the minimum percentage of net demand and time liabilities that commercial banks are required to keep with themselves in the form of liquid assets like cash, gold, or government securities.
What is Induce Investment? [57:03]
Induced investment is when someone invests money with the purpose of earning profit.
Define Direct Tax [57:38]
A direct tax is a tax where the burden falls on the same person who pays it. The most famous example of a direct tax in India is income tax.
The Balance of Trade Showld a Deficit [59:51]
If the balance of trade is -300 and the value of exports is ₹500 crore, then the value of imports is ₹800 crore. (Import = Export - Balance of Trade = 500 - (-300) = 800).
Explain Any Function of Money [1:01:53]
Two main functions of money are: Medium of exchange and Measure of value.
Explain the Various Types of Deposit in Bank [1:02:13]
There are four types of deposits in banks: Saving deposit account, Current deposit account, Fixed deposit account, and Recurring deposit account.
Write the Component of Aggregate Demand [1:03:18]
The components of aggregate demand are: C (Consumption demand) + I (Investment demand) + G (Government demand) + (X - M) (Net export).
Explain Why Public Goods Must Be Provided By The Government [1:04:49]
Public goods like defense, roads, and police service must be provided by the government because of non-excludability, the free-rider problem, non-rivalrous consumption, the lack of profit motive, the objective of social welfare, and their essential role in economic development.
Explain Briefly Any Three Objective of Government Budget [1:04:49]
Three objectives of the government budget are: Economic stability, Reduction in income inequality, and Economic growth and development.
Explain the Difference Between Current Account and Capital Account [1:07:51]
The current account includes short-term transactions like export and import of goods and services, while the capital account includes long-term transactions like foreign investment and loans. The current account directly impacts national income, while the capital account does not.
What Is National Income? Discuss Any One Method Of Measuring National Income? [1:09:01]
National income is the total monetary value of all final goods and services produced by the normal residents of a country during a financial year, including net factor income from abroad. One method of measuring national income is the income method, where you add up all the incomes: Rent + Wages + Interest + Profit + Net Factor Income from Abroad.
Calculate Gross National Product at Market Price From the Following Data [1:10:45]
To calculate GNP at market price, you start with NDP at factor cost, add net indirect taxes (indirect taxes - subsidies) to get NDP at market price, and then add depreciation to get GDP at market price.
