Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | Distinguish between a centrally planned
Distinguish between a centrally planned economy and a market economy.
| S.No. | Points of Difference | Centrally Planned Economy | Market Economy |
|---|---|---|---|
| 1 | Ownership of factors of production. | Factors of production are publicly owned; i.e., public ownership. | Factors of production are privately owned. |
| 2 | Production Motive | The motive of production is social welfare. Factors of production are publicly owned; i.e., public ownership. | The main motive is profit making. |
| 3 | Governing Factor | The production is governed by a planning mechanism; i.e. according to the government plans. | The production is governed by price mechanism; i.e., by demand and supply. |
| 4 | Income Distribution | The degree of inequality of income is low. | There exists unequal distribution of income. |
| 5 | Government’s Role | The main role is played by the government – from production to distribution. | The main role is played by private players. They decide what to produce, while the role of a government is limited to maintaining law and order in the nation. |
More Questions From Class 12 Micro Economics - Chapter Introduction to Micro Economics
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Distinguish between microeconomics and macroeconomics.
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Popular Questions of Class 12 Micro Economics
- Q:-
Explain the concept of a production function
- Q:-
What would be the shape of the demand curve so that the total revenue curve is?
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
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Explain market equilibrium.
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What are the characteristics of a perfectly competitive market?
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What do you mean by the budget set of a consumer?
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What is the total product of input?
- Q:-
From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
-
- Q:-
When do we say that there is an excess demand for a commodity in the market?
- Q:-
How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?
- Q:-
What is budget line?
Recently Viewed Questions of Class 12 Micro Economics
- Q:-
Consider the demand curve D (p) = 10 – 3p. What is the elasticity at price 53?
- Q:-
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
- Q:-
How does an increase in the number of firms in a market affect the market supply curve?
- Q:-
Suppose the demand and supply curve of commodity XX in a perfectly competitive market are given by:
qD =700 - p
qs = 500 + 3p for p ≥ 15
= 0 or 0 ≤ p <15
Assume that the market consists of identical firms. Identify the reason behind the market supply of commodity X being zero at any price less than Rs 15. What will be the equilibrium price for this commodity? At equilibrium, what quantity of X will be produced?
- Q:-
Compute the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
Quantity Sold TR MR AR 0
1
2
3
4
5
6 - Q:-
What does the average fixed cost curve look like? Why does it look so?
- Q:-
What do you mean by a normal good?
- Q:-
What is the marginal product of an input?
- Q:-
Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
- Q:-
At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market? How is the equilibrium quantity determined in such a market?
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