Home » MP Board Class 12th Economics Unit 5 Simple Applications of Demand and Supply Curves Important Questions

MP Board Class 12th Economics Unit 5 Simple Applications of Demand and Supply Curves Important Questions

MP Board Class 12th Economics Important Questions Unit 5 Simple Applications of Demand and Supply Curves with pdf file solutions. from latest MP Board Book.

Micro Economics Simple Applications of Demand and Supply Curves Important Questions

Micro Economics Simple Applications of Demand and Supply Curves Objective Type Questions

Questions 1. Choose the correct answers:

Questions 1. 1. Administrative price is:
(a) Price ceiling
(b) Price floor
(c) Both (a) and (b)
(d) None of these.
Answer:
(c) Both (a) and (b)

Questions 2. Minimum support price of wheat is called:
(a) Price ceiling
(b) Price floor
(c) Market price
(d) Equilibrium price.
Answer:
(b) Price floor

Questions 3. Which of the following is the component of instrument pricing:
(a) Rent
(b) Wages
(c) Interest
(d) None of these.
Answer:
(c) Interest

Questions 4. Which factors help in the determination of equilibrium price:
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above.
Answer:
(d) None of the above

MP Board Solutions

Questions 5. Which among the following statement is not true:
(a) Demand of labor is done by the producer
(b) Demand of labor depends open its productivity
(c) Marginal productivity of a labor is his maximum wages
(d) All of the above.
Answer:
(d) All of the above

Questions 6. Excess demand can be seen in:
(a) Fixed market price
(b) Lowest fixed price
(c) Highest fixed price
(d) None of these.
Answer:
(c) Highest fixed price

MP Board Solutions

Questions 2. Fill in the blanks:

  1. Price range and price floor are also called prices.
  2. The other name of minimum determined price is
  3. According to modem view point, rent increases because of land.
  4. presented FAD principle.
  5. Instrument demand is demand.

Answer:

  1. Administrative
  2. Price floor
  3. Scarcity
  4. Prof. Amartya Sen
  5. Derivative.

Questions 3. State true or false:

  1. Main objective of price range determination is to earn profit.
  2. The price floor is also called lowest fixed price.
  3. In independent market system, prices of goods and services are determined by the forces of demand and supply.
  4. Price range and price floor differ from market oriented prices.

Answer:

  1. False
  2. True
  3. True
  4. True.

Questions 4. Match the following:

  1. Price range (a) Excess supply
  2. Price floor (b) Public Distribution System
  3. Problem of Price floor (c) Minimum wage provision.

Questions 5. Answer the following in one word/sentence:

  1. What is price determination over the equilibrium price called?
  2. Write any one problem that arise as a result of price limit.
  3. Which price protects the interests of the producers?
  4. What determines the price of the goods?

Answer:

  1. Price floor
  2. Black marketing
  3. Price floor
  4. Demand and Supply.

MP Board Solutions

Simple Applications of Demand and Supply Curves Very Short Answer Type Questions.

Questions 1. What is administrative price?
Answer:
If price of any goods or services is determined by the government’s upper limit or minimum limit, then it is called administrative price.

Questions 2. What is price floor?
Answer:
Price floor means minimum support price fixed by the government.

Questions 3. Write two results of highest fixed prices of the government.
Answer:

  1. Long wait
  2. Load on budget.

Questions 4. Give example of price floor.
Answer:
Example of price floor: Under the minimum wage legislation, the government determines the minimum wages given to workers.

Questions 5. Why does the completing labor curve turns to the left after a certain wage level?
Answer:
After a certain level, the fulfillment of labor decreases because after getting more wages from same level, the labor gives more importance to comfort-ability/rest than work. In such a situation, the completing labor curve becomes a curve turning towards the back.

Questions 6. How natural disasters bring starvation?
Answer:
Natural calamities such as floods, droughts, etc. reduce the production of essential food grains, which leads to the fall in food supply as compared to demand. Additional demand of food grains increases the price of food grains, which results in poor people being deprived of food grains and the problem of starvation arises in the area.

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