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Marginal revenue: This refers to the addition prepared to the total revenue.
Revenue: This refers to total money income from the sale of output.
Marginal physical product: It refers to the addition build to the total product.
Production function: This refers to the functional relationship among inputs and outputs.
Price elasticity of demand: The Price elasticity of demand refers to the degree of responsiveness of the quantity demanded to modifications in price. Ed = (ΔQ/Δ P) x (P/Q)
Indifference curve: It demonstrates various combinations of two goods that provide identical level of satisfaction to the consumer.
Normal goods: Normal goods are such goods whose demand increases with the increase in income of consumer.
Demand schedule: This is a tabular symbolization of different quantities demanded at various levels of prices.
Budget line: Budget line exhibits all combinations of two goods which a consumer can purchase with his income at a specified price.
Inferior goods in economics: Inferior goods refer to such goods whose demand reduces with the rise in income of consumer.
Why economic problems occur? Answer: This is due to unlimited or infinite wants and inadequate resources.
Give two illustrations of Micro economic variables studies. Answer: a. Individual demand b. Individual savings
Marginal rate of transformation: This is the amount of one good which should be given to generate one additional unit of a second good. This is also termed as marginal opportunity cost.
Opportunity cost: The Opportunity cost refers to the cost of next best alternative inevitable.
When cost of a foreign currency increases its supply too increases. Elucidate why?
Distinguish among devaluation and depreciation of domestic currency
Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
Which transactions find out the balance of trade? When the balance of trade is in surplus?
Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.
Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they fee
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.